The 2026 State of the Defense Industrial Base Report
The Defense Industrial Base is making progress. But can contractors prove it?
REPORT
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"CMMC remains codified in federal regulation, and its cybersecurity obligations are still a prerequisite for doing business with the Pentagon. What follows is where that leaves the DIB today and what it will take to close the distance between what contractors report and what they can prove."
- Emil Sayegh, CyberSheath CEO
Compliance Scores Are Up. Confidence is Down.
Cybersecurity investment is up. Self-reported compliance scores are up. Documentation and control adoption are improving. Yet confidence in those compliance claims has fallen to its lowest level in the history of the State of the DIB study.
The 2026 State of the DIB Report, commissioned by CyberSheath and conducted by Merrill Research, examines what 302 U.S. defense contractors are saying about cybersecurity, CMMC preparedness, compliance spending, enforcement, third-party risk, and the future of the defense industrial base.
Inside the Report, You'll Discover:
- Why the average SPRS score climbed to +51 while confidence in its accuracy fell to 65%
- How average annual cybersecurity spending reached $155,204
- Why only 1% of contractors say they are completely ready for CMMC certification
- What contractors want changed about the cybersecurity compliance process
- How defense contractors view enforcement and False Claims Act risk
- What separates contractors moving toward mature, continuous compliance from those still struggling to prove it
A Critical Insight from the Fifth Annual State of the DIB Report:
The average SPRS score has continued to rise but confidence in the accuracy of those scores has fallen from 89% in 2025 to 65% in 2026. That gap may be the most important cybersecurity finding in the report. The DIB is making measurable progress. The challenge is increasingly being able to demonstrate that reported compliance reflects operational reality.
What Happened to CMMC?
While the Pentagon suspended CMMC Phase 2 on July 13, 2026, and launched a 60-day review, the underlying responsibility to protect CUI and accurately represent cybersecurity compliance has not. The report examines what the current environment means for defense contractors and why verifiable security matters regardless of where the CMMC timeline lands.
Why Download This Report?
The report answers an essential question. Where does the DIB really stand on cybersecurity maturity right now, and what does that mean for contractors?
The 2026 State of the DIB Report provides:
- A data-driven look at rising compliance scores and falling confidence in them, revealing the “verifiable security” gap shaping the future of DIB cybersecurity.
- Benchmarking for budgets, tool adoption, and preparedness, helping leaders understand how their cybersecurity investments compare across the industry.
- What contractors say they need fixed, and why most support current security requirements but want a more practical path to achieving them.
Together, these insights help defense contractors understand where the DIB stands today, what risks threaten compliance claims, and what leaders must do now to confidently protect contracts, avoid liability, and stay competitive.
Next Steps:
Get the definitive view of where defense contractors stand today and what it will take to stay compliant, competitive, and contract-ready as enforcement intensifies.