Defense contractors are winning on Wall Street, as the uncertainty of a war with Iran and increased tension in the Middle East continue to fuel substantial gains in the stock market.
While oil prices surged the highest Monday, jumping more than 6% over fears of a global supply shortage, companies that build military equipment weren’t far behind — Lockheed Martin and RTX, formerly known as Raytheon, gained 3.3% and 4.7% respectively.
Shares of Northrop Grumman jumped the highest, ending the day up about 6%.
As the DOW Jones Industrial Average fell 0.2% and the S&P 500 finished flat, all three of the world’s largest defense contractors hit new 52-week highs, according to Barron’s.
The major weapons companies are benefitting from the US strikes in Iran over the weekend, but have seen a consistent tailwind dating back to June, when America first attacked the country’s nuclear facilities.
Over the past nine months, Northrop Grumman has skyrocketed 46%, while Lockheed Martin gained 40%.
RTX shares have jumped roughly 45%, with a stock price of $145 back in late June to $212 on Monday.
The company’s $88.6 billion in sales in 2025 represents about a 10% growth from the prior year. In 2024, RTX reported sales of $80.7 billion and $68.9 billion the year before.
All three defense giants maintain a significant presence in California.
Raytheon employs about 6,000 workers at its El Segundo facility, which includes 16 buildings, according to the Los Angeles Daily News. The company’s other major site in Goleta, Calif., employs about 1,000 people.
Lockheed Martin has several key hubs spread out across the state, including Palmdale, Calif., home to Skunk Works — the division famous for advanced aircraft development.
Northrop Grumman has multiple locations across the Golden State, employing roughly 30,000 people, according to The Los Angeles Times.