Joby Aviation Inc (NYSE:JOBY) isn't just chasing urban air taxis—it's eyeing Pentagon dollars. A new partnership with L3Harris Technologies Inc (NYSE:LHX) could put Joby at the center of the U.S. military's $9.4 billion budget request for autonomous and hybrid aircraft in 2026, Joby disclosed to Benzinga over an exclusive email interview. That's a tailwind investors didn't see coming and one that could reshape the revenue mix.
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Dual-Use Technology Gets Serious
Joby's experience with the Department of Defense has already validated its technology. "Our autonomous flight technology is a dual-use technology," the company said. That dual-track opens the door to both defense logistics contracts and cost-saving features in commercial air taxis.
Now, with L3Harris, Joby is moving into hybrid vertical take-off and landing (VTOL) aircraft, designed for low-altitude missions and capable of being optionally piloted—a flexible capability few rivals can match.
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Billions In Military Demand
The timing could be lucrative. The Pentagon's 2026 budget carves out $9.4 billion for autonomous and hybrid aircraft, and Joby's new platform could capture some of that spend.
For investors, it's a diversification story: defense as a cash engine, commercial services as the long-term growth driver.
As Joby put it, "Our commercial air taxi service remains our primary focus," but defense partnerships are a critical technology test bed that may evolve into a second growth pillar.
For years, Joby was a commercial-first story. With L3Harris in the mix, the defense angle is now impossible to ignore. If Pentagon contracts land, investors could see Joby's military ambitions lift its stock higher—faster than expected.
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Image created using artificial intelligence via Midjourney.
