Tanks or drones? Defense earnings reveal a more complicated rearmament boom

Drone technology and artificial intelligence are rapidly reshaping modern warfare, but the world's biggest defense contractors are finding that demand for tanks, fighter jets and other traditional military equipment remains strong.Recent earnings from U.S. and European defense companies show conventional weapons continue to drive year-on-year growth, even alongside surging demand for advanced sensors, autonomous systems and counter-drone technology.Rather than displacing traditional weapons manufacturers, the rise of drones and autonomous warfare is creating new business for many of the same companies. From counter-drone defenses to advanced sensors integrated into tanks and fighter jets, the technologies transforming the battlefield are also changing, or even expanding, the markets served by legacy defense giants.Legacy defense remains strongLockheed Martin reported a 24% jump in revenue from its missiles business in the third quarter, while RTX secured multibillion-dollar contracts for established missile systems. In Europe, German defense supplier Renk saw orders for its military vehicle business surge 46% in the first nine months of the year.Yet, the same earnings also show how...