Boeing Defense Business Soars on Rising Demand and International Sales

Boeing's defense business is growing rapidly and could become an increasingly important contributor to the company's future growth. In the second quarter of 2026, the Defense, Space & Security segment saw a 13% year-over-year increase in revenue to $7.5 billion, driven by higher volume across the portfolio.

The size of Boeing's defense backlog is another key advantage for the company. At approximately $85 billion, it represents a diversified pipeline of contracted work that supports revenue visibility for several years. This includes orders from customers outside the United States, which provide exposure to international defense demand and account for 27% of the total backlog.

Several major programs are moving from development toward production, including the MQ-25A Stingray and the U.S. Air Force's T-7A Red Hawk. These programs position Boeing across several areas of modern defense spending, rather than relying on a single aircraft platform.

The broader increase in defense spending is creating opportunities across aerospace and defense. Companies like General Dynamics and RTX Corporation are poised to benefit from elevated defense spending through their submarines, armored vehicles, and munitions businesses.