With the U.S. defense budget increasing 44% to $1.5 trillion by 2027, two defense contractors are positioned for growth: Kraken Robotics, a supplier of subsea drone technology with minimal competition, and Leidos, an established defense contractor with steady growth and a $2.7 billion hypersonic missile contract.

Leidos Holdings (NYSE: LDOS) announced that its board of directors has declared a quarterly cash dividend of $0.43 per share, payable on June 30, 2026, to stockholders of record as of June 15, 2026. The company, headquartered in Reston, Virginia, reported annual revenues of approximately $17.2 billion for fiscal year 2026.

BigBear.ai (BBAI) surged 10.46% to $4.12 on heavy trading volume ahead of its fiscal Q1 earnings report, driven by increased investor interest in AI-focused defense stocks. The company's 64.9M share volume was 54% above its three-month average. However, the stock remains down 58% since its 2021 IPO, and future performance will depend on government contract awards and backlog conversion rather than the recent trading momentum.

Saronic, a privately-held defense company specializing in uncrewed autonomous warships, has raised $1.75 billion in funding at a $9.25 billion valuation. The company recently won a $392 million Navy contract and plans to scale production of its robotic vessels, including the 180-foot Marauder capable of carrying cruise missiles. An IPO may be forthcoming as demand for shares grows.

Lockheed Martin's classified quantum-sensing technology called 'Ghost Murmur' was reportedly used by the CIA to locate and extract a downed U.S. airman from Iran's mountains. The system uses quantum magnetometers and AI to detect human heartbeats from long range. This marks the first real-world deployment of the previously classified technology, with President Trump calling the mission 'unbelievable.'

Kratos Defense & Security Solutions announced the appointment of David King to its Board of Directors effective March 23, 2026. King brings over four decades of aerospace and defense experience, including his tenure as CEO of Dynetics (2015-2020) where he grew the company from $180 million to $650 million in revenue before its $1.65 billion acquisition by Leidos. He will serve on Kratos' Audit Committee.

Vast and Starlab are competing to replace the aging International Space Station. Vast raised $500 million and plans to launch Haven 1 in 2027 and Haven 2 by 2028, while Starlab touts its larger 400 cubic meter habitat launching via SpaceX Starship by 2029. Congress is pushing NASA to contract with at least two companies for ISS replacement, with the race remaining wide open despite both companies facing execution risks.

Four teams are competing to build private space stations to replace the International Space Station after 2030. Starlab, led by Voyager Technologies, completed its Commercial Critical Design Review with NASA and is transitioning to manufacturing, putting it ahead of Orbital Reef but behind Axiom and Vast in the development race.

Blue Water Autonomy, a Boston-based tech company, announced it will build uncrewed surface vessels (USVs) for the U.S. Navy starting in March 2026. The Liberty-class USVs are smaller (190 feet, 1,200 tons) compared to traditional Arleigh Burke-class destroyers, can be built in under a year, require no crew, and can carry 16-32 missiles. Partnering with Conrad Industries in Louisiana, Blue Water aims to produce 10-20 vessels annually, potentially helping the Navy reach President Trump's goal of 355+ ships faster and more cost-effectively than traditional large defense contractors.

Leidos Holdings stock declined 6.16% after reporting Q4 results with revenue missing estimates at $4.21B (down 4% YoY) due to a government shutdown, though adjusted EPS beat at $2.76. The company issued FY2026 guidance below consensus and announced a $2.4B acquisition of Entrust, a power design firm.

Leidos Holdings, Inc. (NYSE: LDOS) announced that its board of directors has declared a quarterly cash dividend of $0.43 per share, payable on March 31, 2026, to stockholders of record as of March 16, 2026. The company, headquartered in Reston, Virginia, serves government and commercial customers with digital and mission innovations, employing 47,000 global employees and reporting annual revenues of approximately $16.7 billion for fiscal year 2025.

Kohlberg has agreed to sell ENTRUST Solutions Group to Leidos Holdings for approximately $2.4 billion. The transaction is expected to close in Q2 2026. ENTRUST, a consulting and engineering services platform acquired by Kohlberg in 2019, has expanded significantly through organic growth and strategic acquisitions. The deal will strengthen Leidos' ability to serve customers in North America's critical power infrastructure sector.