Defense tech investors thought the war in Iran could make them millionaires. Instead, some of the industry's biggest names have faced a bloodbath

An F/A-18E Super Hornet, attached to Strike Fighter Squadron (VFA) 14, makes an arrested landing on the flight deck of Nimitz-class aircraft carrier USS Abraham Lincoln (Credit: U.S. Navy via Getty Images)

The U.S. has racked up a $37.5 billion tab on the war in Iran following President Donald Trump’s launch of Operation Epic Fury in late February. Yet despite continued conflict and historic levels of defense spending requested by the Pentagon, investors betting on a defense windfall have watched many top contractors lose value.

Trading volumes in major defense contractors surged in the conflict’s opening days—rising for some as much as 140% above their average level during Trump’s second term—but the gains didn’t last. Northrop Grumman is now down over 30%, L3Harris Technologies has fallen over 20%, and Lockheed Martin has declined nearly 13%. Raytheon Technologies (RTX)—No. 49 on the Fortune 500—was at one point down about 18%, though the stock has since recovered to up 4% after the company reported better-than-expected second-quarter earnings.