President Donald Trump’s trillion-dollar request for defense in his fiscal 2026 budget request tells investors something: Trump’s peace through strength positioning isn’t bad for the industry. But the proposed spending levels might not lead to a bump for defense stocks just yet.

President DONALD TRUMP and Defense Secretary PETE HEGSETH have promised a $1 trillion defense budget. Their budget doesn’t deliver it — unless you squint. The plan the White House unveiled last week falls short unless Congress passes a one-time funding boost and includes spending from outside the Pentagon’s regular budget.

In his first full budget proposal since returning to the White House, President Donald J. Trump has laid out a sweeping $1.7 trillion spending blueprint that slashes domestic programs to levels not seen since the 1960s,