3 Defense Stocks Investors Are Surfacing For Military Spending

World leaders are openly questioning whether current defenses can cope with modern threats, as highlighted by a UK TV series exposing how poorly prepared Britain could be for war. That kind of wake up call tends to focus attention on companies supplying real hardware, software, and support to allied militaries. This article picks three stocks from the Five Eyes Defense Companies Whose Share Prices Have Been Flying screener that capture that theme.

The three stocks highlighted below are only a starter set, with the full Five Eyes defense screen surfacing 19 more contractors and suppliers with equally compelling stories that do not fit into this short article.

To explore the opportunity in more detail and identify which defense leaders best align with your own thesis, go directly to the Five Eyes Defense Companies Whose Share Prices Have Been Flying screener to filter and analyze the broader field of potential high-conviction plays.

Sparc AI (CNSX:SPAI)

Overview: Sparc AI develops Overwatch software and electronics that give drones, soldiers, and other platforms GPS-free targeting, positioning, and tactical navigation capabilities sought by Five Eyes defense customers.

Market Cap: CA$82.9 million

For the Five Eyes defense theme, Sparc AI develops software that keeps drones and ground units functioning when GPS is jammed. That is exactly the scenario allied militaries are trying to solve for.

"The most important catalyst by far is whether Overwatch works as intended in real world scenarios because it’s proof of the technology; right now public knowledge mostly comes from Sparc AI’s news releases, and once trials begin generating real-world feedback from defence operators that question starts moving from theory to evidence."

What happens when that evidence base either firmly validates or sharply challenges the current expectations built into Sparc AI’s high-priced momentum story could matter a lot for investors tracking this defense theme.

The most-followed narrative on the Simply Wall St community about Sparc AI focuses on the company’s Overwatch technology and its potential to provide positioning for drones when GPS is unavailable or disrupted. It highlights Sparc AI’s software-based approach, early trials and partnerships in markets including Ukraine, the UAE, India and the US, as well as the launch of its Overwatch Positioning Network. The Community Author’s thesis is that Sparc AI is making progress towards commercialisation, but that signed contracts, independent field validation and meaningful revenue are still important milestones to watch.

CNSX:SPAI 1-Year Stock Price Chart

Ducommun (DCO)

Overview: Ducommun is an aerospace and defense supplier that engineers and manufactures mission-critical aerostructures, ammunition handling systems, and electronic assemblies for military and commercial aircraft and space programs.

Operations: Ducommun generates about US$372.1 million from Structural Systems, reflecting a balanced aerospace and defense focused mix.

Market Cap: US$2.6 billion

Ducommun matters because its Structural Systems work feeds directly into fighters, transports, helicopters, and missile platforms that allied governments continue to fund heavily.

"Elevated global defense spending and the replenishment of missile and radar inventories, highlighted by strong double-digit growth in both segments and a 30% increase in missile backlog, position Ducommun to sustain and expand revenue as defense modernization accelerates over the next several years, with increasing program content and order activity."

The real swing factor is how one pressure on future profitability ultimately resolves for Ducommun as this defense cycle plays out.

That pressure point is exactly what the full narrative for Ducommun unpacks, highlighting where missile backlog strength could be masking emerging risks or accelerating Ducommun's upside potential.

NYSE:DCO Earnings & Revenue Growth as at Sep 2026

Moog (MOG.A)

Overview: Moog designs and integrates precision motion, actuation, and flight control systems for aerospace, defense, and industrial customers across multiple platforms.

Operations: Moog generates about US$1.3 billion from industrial, US$1.0 billion from commercial aircraft, and US$964 million from military aircraft.

Market Cap: US$12.4 billion

Moog matters for this Five Eyes defense screen because its flight control and actuation hardware sits inside allied aircraft, missiles, naval systems, and space launch programs where real procurement dollars are flowing.

"Moog is positioned to benefit from a sustained increase in global defense spending, with significant order backlog and direct exposure to US, NATO, and Indo-Pacific modernization programs, which is likely to drive multi-year revenue growth and increased earnings stability."

What happens if one persistent pressure on cash generation and margins collides with those defense tailwinds will be crucial for investors to watch.

If that margin squeeze becomes the real story, read the full narrative for Moog to see how Moog’s defense backlog could still be masking meaningful upside potential.

NYSE:MOG.A Revenue & Expenses Breakdown as at Sep 2026

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Simply Wall St analyst Andrew Legget and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.