The Shield — Defense Space & Golden Dome
Golden Dome — $185B official, $1.2T CBO-modeled — is the largest defense procurement in a generation.
Golden Dome is a layered missile-defense system. Three pillars: (1) SDA's Proliferated Warfighter Space Architecture for tracking and command/control (Tranche 1 ~154 satellites in 2026; Tranche 2 ~270 satellites starting late 2026; Tranche 3 funding restored); (2) Space Data Network / MILNET backbone (largely SpaceX Starshield, contractor-operated for Space Force and NRO); (3) Space-Based Interceptors (SBI) — kill vehicles in orbit. The FY26 Defense Appropriations Act allocated ~$13B for Golden Dome / SDA , including $7.2B for military space-based sensors, $2.2B for hypersonic defense, $2B for AMTI satellites, $1.9B for ground-based radars. Largest US primes — Lockheed, Northrop, L3Harris, RTX, Booz Allen — are the integrators. Pure-play winners include Kratos (Choke 05), Mercury Systems , Rocket Lab (Raytheon-partnered SBI), Voyager, Redwire (Andromeda), Spire (RFGL), BlackSky (AFRL EO).
Dominant defense-budget catalyst through the late 2020s. Each contract win is a multi-year ARR step. Fiscal 2027 national security spend projected at $1.5 trillion — a ~$411B increase over FY26.
2 names on the watchlist
Rugged signal-processing, RF, and storage subsystems — including data recorders on SDA Tranche 3
Q3 FY26 (May 5, 2026) was a record: bookings $348.3M (book-to-bill 1.48); backlog ~$1.6B (+18% YoY) ; revenue $235.8M (organic growth 11.5%); adjusted EBITDA $36.1M (+46% YoY, 15.3% margin). Headline win: L3Harris selected Mercury to provide Solid-State Data Recorders for SDA Tranche 3 Tracking Layer satellites (April 2, 2026). Closed the SolderMask acquisition (March 2026).
Diversified defense conglomerates with Golden Dome exposure inside broader businesses
Lockheed Martin (LMT) — prime on Next-Gen OPIR; acquired Terran Orbital late 2024. Northrop Grumman (NOC) — Tranche 1/2/3 Transport Layer prime; SRM franchise. L3Harris (LHX) — Tranche prime; owns Aerojet Rocketdyne. RTX — Raytheon partnered with Rocket Lab on SBI. Booz Allen (BAH) — top systems integrator on Golden Dome.