1109 ET - Morgan Stanley says the potential 73% year-over-year increase in modernization spending included in the Trump administration's $1.5 trillion defense budget request should broadly benefit the defense primes, the handful of very large contractors for the Defense Department and suppliers. The analysts say the proposal highlights plans to fund the Golden Dome initiative, strengthen US Space capabilities, expand US shipbuilding capacity, procure more F-35s and invest in critical munitions in addition to other efforts. "We look forward to additional color from the Defense Primes during upcoming 1Q26 earnings calls on how the FY27 budget request could translate into growth across respective portfolios," the analysts say. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

April 06, 2026 11:09 ET (15:09 GMT)

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