Assessment · Companies
Which defense companies grew without acquisitions in the quarter ended around Sept. 30, 2026?
Five of 16 growth-leaderboard companies' releases give a company-wide organic growth rate. RTX, Leonardo DRS and L3Harris put theirs at 9% or more against the same quarter a year earlier.
In this Assessment
RTX, the largest of the 16 companies in this edition by quarterly revenue, grew 12% organically. Its reported growth was 11%, held back by divestitures at its Collins Aerospace segment.1
Five of the 16 give a company-wide organic growth rate in their earnings releases, and the gap between that rate and reported growth runs in both directions. Divestitures held back reported growth at RTX and L3Harris.1–2 Acquisitions lifted it at CACI and Parsons.3–4 On CACI's own split, acquisitions supplied about three-quarters of its growth.3, 5
This edition covers the 16 companies on our growth leaderboard whose results for the quarter are in our checked research. Fiscal calendars differ, so their quarters ended between Sept. 27 and Oct. 4, 2026, and each is compared with the same quarter a year earlier. CACI and Booz Allen, whose quarters ended Sept. 30, call them the first and second quarters of fiscal 2027.5–6
Divestitures held back reported growth at RTX and L3Harris
RTX and L3Harris grew faster organically than reported; CACI and Parsons slower
Companies: the five that state a company-wide organic growth rate in their earnings releases, among the 16 growth-leaderboard companies whose results for the quarter are in our checked research. Revenue growth in each company's quarter ended Sept. 30, 2026 (L3Harris: Oct. 2), against the same quarter a year earlier. Thick bar: organic growth as each company states it; RTX and L3Harris computed from their reconciliation tables (stated as 12% and 9%). Thin bar, from organic to reported: the rest, filled where it adds and outlined where it subtracts. Line: reported growth.
Source: company earnings releases and quarterly reports (SEC filings). Data as of Nov. 2026. TGOs · tgos.io
RTX defines organic sales as the change in net sales "excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items".1 Its reconciliation shows an organic increase of $2.6 billion, against $2.5 billion reported. Acquisitions and divestitures make up the difference, a net reduction of $124 million. Its Raytheon segment grew 14%, which RTX credits to higher volume "on naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk".1
L3Harris reported growth of 7% and organic growth of 9%. Its reconciliation takes $103 million out of the year-earlier base, revenue from the divested Space Technology disposal group. Against the remaining $5.6 billion, this quarter's revenue is 9.1% higher. The release credits "double-digit growth in the Space & Mission Systems and Missile Solutions segments".2
Leonardo DRS grew 11% both organically and in total. The organic figure comes from President and Chief Executive John Baylouny's commentary in the earnings release, which gives no definition or reconciliation for it. The release says the growth was "primarily led by programs related to tactical radars, naval power and propulsion programs and progress on our space sensing programs".7
At CACI and Parsons, acquisitions lifted reported growth above organic
CACI's revenue rose 8.2% in the first quarter of its fiscal 2027, including 2.1% organic growth.5 Its quarterly report attributes the increase "to growth from acquisitions and organic growth of 2.1%".3 On that split, acquisitions supplied about 6.1 percentage points, or about three-quarters of the growth.3, 5 The report's acquisitions note describes the March 9, 2026, purchase of ARKA Group for $2,637.7 million, net of cash acquired.3
Parsons' revenue rose 2% but fell 1% on an organic basis. Excluding what it calls its confidential contract, revenue rose 5% and organic revenue 2%. Its segment results credit "inorganic revenue contributions from the company's Applied Sciences acquisition" in Critical Infrastructure and "contributions from our Altamira acquisition" in Federal Solutions.4
Eleven of the 16 give no company-wide organic growth rate in their earnings releases
Eleven of the 16 give no company-wide organic growth rate in their releases
Companies: the 16 growth-leaderboard companies whose results for the quarter are in our checked research. Reported revenue growth in each company's quarter ended between Sept. 27 and Oct. 4, 2026, against the same quarter a year earlier; it can include revenue from businesses bought or sold. Dot: organic growth, for the five that state it (RTX and L3Harris computed from their reconciliations). Palantir's bar is broken to fit the scale.
Source: company earnings releases and quarterly reports (SEC filings). Data as of Nov. 2026. TGOs · tgos.io
Boeing, Lockheed Martin, General Dynamics, Northrop Grumman, HII, Booz Allen, Palantir, KBR, V2X, BWX Technologies and National Presto give no company-wide organic growth rate in their earnings releases for the quarter. Northrop Grumman states organic sales only for its Defense Systems segment. For these companies, reported growth can include revenue from businesses bought or sold.
At BWX Technologies, revenue rose 10.0%. Its quarterly report says Precision Components Group, acquired on July 1, 2026, added $26.2 million of revenue.8 That is about 30% of the increase; without it, revenue rose about 7%. The 7% figure removes only the Precision Components Group amount and is not an organic growth rate. The report also says $13.8 million of Government Operations' revenue increase was associated with Aerojet Ordnance Tennessee, which BWX Technologies acquired on Jan. 3, 2025, before the year-earlier quarter began.8
Boeing's revenue rose $918 million, which its quarterly report says was "primarily driven by higher revenues at Defense, Space & Security (BDS)". BDS revenue rose $1,033 million, "primarily due to increased revenues on proprietary and weapons programs, KC-46A, and the acquisition of Spirit's defense business". Boeing completed its acquisition of Spirit AeroSystems on Dec. 8, 2025. The report also credits $310 million of the BDS increase to smaller unfavorable cumulative contract catch-up adjustments than a year earlier.9
Booz Allen's revenue fell 3.9% in its second fiscal quarter, the only revenue decline among the 16. Civil and commercial revenue fell $125 million, more than the company's whole $112 million decline, while revenue from defense and intelligence customers rose slightly. In the six months to Sept. 30, Booz Allen paid $934 million for business acquisitions and dispositions, net of cash acquired.6 Its release gives no organic growth rate.
Boeing, BWX Technologies and Leonardo DRS had deals pending when they reported
Boeing agreed on Aug. 9, 2026, to sell Insitu, Wisk Aero and SkyGrid to Archer Aviation for Archer shares and warrants, and expects the deal to close later in 2026.9 BWX Technologies agreed on July 31 to sell its medical business to Nordic Capital, in a transaction valued at up to $800 million. It expects to complete the sale in 2026 or the first quarter of 2027. It will keep a minority interest in the divested business and says the sale is not expected to significantly affect its continuing financial results.8 Leonardo DRS's guidance excludes its pending acquisition of Raft.7
Insitu is still reported within Boeing's BDS segment, and the medical business, classified as held for sale, is still part of BWX Technologies' Commercial Operations segment.8–9
Reported and organic growth at all 16 companies
| Company | Revenue | Reported growth | Organic growth (company-stated) | Source |
|---|---|---|---|---|
| RTXthird quarter 2026 · ended Sept. 30, 2026 | $25.0B | +11.1% | +12% | Release |
| Boeingthird quarter 2026 · ended Sept. 30, 2026 | $24.2B | +3.9% | Not stated | Release |
| Lockheed Martinthird quarter 2026 · ended Sept. 27, 2026 | $20.7B | +11.3% | Not stated | Release |
| General Dynamicsthird quarter 2026 · ended Oct. 4, 2026 | $14.6B | +12.9% | Not stated | Release |
| Northrop Grummanthird quarter 2026 · ended Sept. 30, 2026 | $11.1B | +6.7% | Not stated | Release |
| L3Harristhird quarter 2026 · ended Oct. 2, 2026 | $6.1B | +7.1% | +9% | Release |
| HIIthird quarter 2026 · ended Sept. 30, 2026 | $3.5B | +10.8% | Not stated | Release |
| Booz Allensecond quarter of fiscal 2027 · ended Sept. 30, 2026 | $2.8B | −3.9% | Not stated | Release |
| CACIfirst quarter of fiscal year 2027 · ended Sept. 30, 2026 | $2.5B | +8.2% | +2.1% | Release |
| Palantirthird quarter 2026 · ended Sept. 30, 2026 | $2.3B | +95.9% | Not stated | Release |
| KBRthird quarter fiscal 2026 · ended Oct. 2, 2026 | $2.0B | +5.0% | Not stated | Release |
| Parsonsthird quarter 2026 · ended Sept. 30, 2026 | $1.7B | +2% | −1% | Release |
| V2Xthird quarter 2026 · ended Oct. 2, 2026 | $1.3B | +8.9% | Not stated | Release |
| Leonardo DRSthird quarter 2026 · ended Sept. 30, 2026 | $1.1B | +11.0% | +11% | Release |
| BWX Technologiesthird quarter 2026 · ended Sept. 30, 2026 | $953M | +10.0% | Not stated | 10-Q |
| National Prestothird quarter 2026 · ended Oct. 4, 2026 | $144M | +25.0% | Not stated | Release |
Revenue for the quarter; growth against the same quarter a year earlier, computed from the two revenue figures in each company's earnings release (BWX Technologies: its 10-Q). Parsons: the growth rate its release states, with revenue as rounded there. Organic: the company-wide rate each release states, in the company's own terms. Not stated: no company-wide organic rate in the release.
