L3Harris Technologies IncL3Harris Technologies has fallen over 20% as defense stocks decline despite war spending, with analysts citing that good news was already priced in.
Investors who bet on a defense windfall from the U.S. war in Iran have instead watched major contractors lose value, even as the conflict has cost $37.5 billion and the Pentagon seeks a $1.5 trillion budget. Northrop Grumman is down over 30%, L3Harris Technologies has fallen over 20%, and Lockheed Martin has declined nearly 13%, while Raytheon Technologies recovered to up 4% after better-than-expected earnings. Analysts say much of the good news was already priced in, and history shows the best defense returns often come before conflicts begin. Meanwhile, venture capital poured a record $19.8 billion into defense tech startups in the first quarter of 2026, though the 15 highest-valued startups still account for less than 1% of Pentagon contracting dollars.
L3Harris Technologies IncL3Harris Technologies has fallen over 20% as defense stocks decline despite war spending, with analysts citing that good news was already priced in.
Lockheed Martin CorporationLockheed Martin has declined nearly 13% as defense stocks fall despite war spending, with analysts saying much of the good news was already priced in.
Northrop Grumman CorporationNorthrop Grumman is down over 30% as defense stocks decline despite war spending, with analysts citing that good news was already priced in.
RTX CorporationRaytheon Technologies recovered to up 4% after better-than-expected earnings, bucking the broader defense stock decline.