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Home DoD

Adm. Daryl Caudle Outlines Navy Hedge Strategy, New Fighting Instructions

by Miles Jamison
January 28, 2026
in DoD, News
Naval Operations Chief Adm. Daryl Caudle. Adm. Daryl Caudle has outlined a new Hedge Strategy for the U.S. Navy.

Adm. Daryl Caudle has outlined a new Hedge Strategy for the U.S. Navy.

Adm. Daryl Caudle, the U.S. Navy’s chief of naval operations, outlined a new strategic vision for the service, emphasizing adaptability, industrial revitalization and a full-spectrum Hedge Strategy to address a more complex global security environment.

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  • What Challenge Is the Navy Facing?
  • What Are the Navy Fighting Instructions?
  • What Is the Hedge Strategy?
  • What Comes Next?

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Adm. Daryl Caudle Outlines Navy Hedge Strategy, New Fighting Instructions

Register now for the Potomac Officers Club’s 2026 Navy Summit on Aug. 27 to join senior Navy, defense and industry leaders as they discuss emerging technologies and modernization priorities shaping the future of naval operations. 

What Challenge Is the Navy Facing?

Speaking Tuesday at the APEX Defense forum, Caudle said the Navy is operating in an era defined by great power competition, asymmetric threats and rapid technological change. He pointed to years of underinvestment in shipyards, munitions production and infrastructure as factors that have strained the U.S. industrial base, at a time when adversaries are advancing their capabilities at speed.

What Are the Navy Fighting Instructions?

In response, Caudle said he will soon release the U.S. Navy Fighting Instructions, a new strategic framework to guide future investments, force design, strategic priorities and policy decisions. The guidance will be built around three priorities—foundry, fleet and fight—and is intended to ensure the Navy can operate effectively across the full spectrum of conflict. Guided by these priorities, the Fighting Instructions aim to strengthen homeland defense, sustain global deterrence and safeguard national prosperity.

What Is the Hedge Strategy?

At the core of the Fighting Instructions is a Hedge Strategy that combines advanced, high-end platforms with scalable, cost-effective capabilities. Designed to operate within fiscal, industrial and operational limits, the approach acknowledges those constraints while maintaining a lethal, flexible and resilient fleet.

Rather than shaping the force around a single contingency, the Hedge Strategy seeks to preserve the Navy’s ability to respond across a range of conflict scenarios. It relies on modular force packages, including tailored forces and tailored offsets, that integrate manned, unmanned, autonomous and logistical systems to support operations across both high- and lower-probability scenarios.

What Comes Next?

Caudle said the strategy will be implemented through initiatives such as tailored force development, readiness reforms and updated deterrence concepts, all designed to give commanders adaptable options across theaters.

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