Pentagon’s fiscal 2026 request sets aside $13.4 billion for autonomy, spotlighting defense electronics demand
The U.S. Department of Defense’s fiscal 2026 budget request, for the first time, creates a standalone $13.4 billion line item for “autonomy,” spanning drones, counter-drone systems, unmanned vessels and enabling software. Mercury Systems is cited as an early beneficiary, with last quarter’s bookings up 74% year over year, book-to-bill at 1.48 and backlog at a record $1.6 billion, pointing to front-loaded demand in defense electronics. The broader backdrop includes rising global military spending—$2,887 billion in 2025—and a shift toward “consumable” intelligent platforms, according to the Stockholm International Peace Research Institute.
