Top 10 AI Defense & National Security Companies — Q2 2025

State of the Sector: Q2 2025 Overview

AI has become a national security asset — and in Q2 2025, that truth came into sharper focus. From battlefield autonomy and decision support to intelligence fusion and cybersecurity, governments are investing heavily in AI to gain strategic and tactical edge. The line between defense contractor and tech company is blurring fast. Meanwhile, allies and adversaries alike are racing to build sovereign AI capabilities, with geopolitical tension turning AI into an arms race — one powered by algorithms, not ammunition.

Top 10 Public AI Defense & National Security Companies — Q2 2025

1. Palantir Technologies (PLTR, NYSE)
Palantir has become the de facto AI platform for U.S. defense and intelligence. In Q2, its Gotham and AIP platforms expanded across combatant commands, helping fuse real-time data from drones, sensors, and field units into actionable insights. The company’s operational tempo and deployment scale are unmatched.

2. Elbit Systems (ESLT, NASDAQ)
This Israeli defense firm is pushing forward with AI-enabled targeting, autonomous systems, and surveillance platforms. In Q2, Elbit announced new contracts for AI-enhanced battlefield management systems and loitering munitions with embedded vision intelligence. It’s a true full-stack AI combat platform.

3. Lockheed Martin (LMT, NYSE)
Lockheed is investing deeply in AI across its air, land, and sea platforms. In Q2, its AI-driven mission planning tools and autonomous teaming initiatives for unmanned aircraft advanced significantly. The company is betting big on AI to extend the edge of battlefield decision-making.

4. Leidos (LDOS, NYSE)
A major player in defense IT, Leidos is integrating AI into ISR (intelligence, surveillance, reconnaissance), cybersecurity, and logistics. Q2 included new contracts to modernize intelligence analysis workflows using NLP and computer vision — with a growing footprint across federal and allied agencies.

5. Northrop Grumman (NOC, NYSE)
Northrop is advancing autonomy in both air and space. Q2 saw continued development of its AI-powered drone swarming systems and space-based threat detection platforms. With DARPA and NASA contracts in hand, Northrop is positioned as a key AI innovator across multiple domains.

6. Booz Allen Hamilton (BAH, NYSE)
As the top AI consultant to the U.S. federal government, Booz Allen plays an invisible but powerful role in shaping national security AI policy and implementation. In Q2, its work with JAIC (Joint AI Center) and NATO initiatives kept it central to coalition-aligned AI infrastructure.

7. Anduril Industries (via LUNR, NASDAQ – proxy investment)
While Anduril is still private, investors are gaining indirect exposure through its contracts and partnerships via BigBear.ai and Intuitive Machines. In Q2, Anduril’s AI-powered sentry towers and Lattice OS were selected for expanded U.S. base deployments, reflecting real operational trust.

8. BigBear.ai (BBAI, NYSE)
BigBear focuses on AI-enabled decision intelligence for defense logistics, threat prediction, and wargaming. Q2 included joint demonstrations with allied militaries and growth in classified contract value. It’s a niche player with growing strategic weight.

9. Kratos Defense (KTOS, NASDAQ)
Known for low-cost tactical drones and unmanned systems, Kratos is integrating AI to drive real-time autonomy and swarm coordination. Q2 featured flight demos of its Valkyrie drone with on-board adaptive intelligence — a step closer to fully autonomous aerial missions.

10. L3Harris Technologies (LHX, NYSE)
L3Harris is embedding AI in tactical communications, signal processing, and geospatial intel. In Q2, it demonstrated new battlefield spectrum awareness capabilities and expanded AI tools for frontline targeting and comms resilience — making it a key enabler in future joint force operations.

Private Companies to Watch

Many of the most disruptive AI tools in defense are still privately held but scaling quickly:

Anduril – Building battlefield-ready autonomy, from drones to surveillance towers. A new kind of defense contractor.

Shield AI – Developing autonomous aircraft AI that enables operations in GPS-denied and contested airspaces.

Primer AI – Creating OSINT and classified NLP models to support intelligence fusion across unstructured data sources.

Rebellion Defense – Focused on deploying secure AI tools across software-defined warfare scenarios, including tactical edge networks.

Helsing – European defense AI firm rapidly growing with government support to build NATO-aligned autonomy and targeting platforms.

Neural Capital Insight

Defense isn’t just adopting AI — it’s being redefined by it. In Q2, the leaders weren’t necessarily the biggest weapons makers, but those who understood how to make AI usable in mission-critical environments. Reliability, security, and strategic relevance are now the benchmarks. And in this space, speed of deployment wins wars — and contracts.

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From autonomous drones to AI-enhanced targeting, the next generation of defense is algorithmic. Follow NeuralCapital.ai for quarterly insights into how AI is reshaping national security — and which companies are leading the charge. Q3 Rankings drop July 1.