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Defense Stocks Rebound After Trump Says He Wants $1.5 Trillion Military Budget in 2027

Provided by Dow Jones Jan 7, 2026, 10:55:00 PM

By Nicholas G. Miller

Shares of defense companies surged in after-market trading after President Trump posted on Truth Social that the country's 2027 military budget should be $1.5 trillion dollars.

L3Harris rose 6.5% to $329.99 after the bell. Lockheed Martin gained 6.4% to $528.87. Northrop Grumman increased 5.4% to $608.18. Kratos Defense & Security Studio jumped 5.9% to $96.75.

The gains mark a rebound from earlier in the day when shares of defense contractors fell after Trump said he would block dividends and stock buybacks for defense companies.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 07, 2026 17:55 ET (22:55 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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