"Microsoft (NASDAQ:MSFT)'s $170 million Air Force cloud contract signals the massive defense modernization wave reshaping Pentagon technology buying. While Microsoft grabs headlines, the real winners are companies building hardware that protects American interests: fighter jets, missile systems, submarines, and bombers. These aren't software plays - they're steel, titanium, and composite fiber companies with decade-long backlogs and bipartisan budget support. We ranked the top five defense and aerospace stocks based on profitability margins, operational efficiency, balance sheet strength, and positioning in the defense modernization cycle."
"Boeing (NYSE:BA) ranks last: it lost $5.34 billion in Q3 2025 on $23.27 billion in revenue. That's a negative 22.9% net margin. Operating margins sit at negative 20.5%. The balance sheet shows negative equity of $8.25 billion. But here's the asymmetry: revenue grew 30.4% year over year. The 737 MAX production line is accelerating. Defense division remains profitable. The stock trades up 44% over the past year, and 79% of analysts rate it Buy or Strong Buy."
Microsoft's $170 million Air Force cloud contract signals a massive defense modernization wave reshaping Pentagon technology buying. The primary beneficiaries are companies that build hardware—fighter jets, missile systems, submarines, and bombers—manufacturers using steel, titanium, and composite fiber with decade-long backlogs and bipartisan budget support. Top five defense and aerospace stocks were ranked by profitability margins, operational efficiency, balance sheet strength, and positioning in the modernization cycle. Defense contracting rewards execution: missed milestones or cost overruns punish stock performance, while on-time delivery with margin discipline generates shareholder returns. Boeing posted a Q3 2025 loss but showed 30.4% revenue growth and accelerating 737 MAX production. General Dynamics reported $12.91 billion in Q3 revenue, an 8.2% net margin, and raised its quarterly dividend to $1.50.
Read at 24/7 Wall St.
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