RTX Corporation (NYSE: RTX) has secured a landmark $22.9 billion contract with the U.S. Navy to accelerate production of Tomahawk cruise missiles over seven years.
The agreement establishes revenue visibility stretching well into the 2030s, anchoring the company’s defense portfolio with one of the largest single awards in recent memory.
Under the contract terms, annual Tomahawk output is expected to climb from approximately 60 missiles to more than 1,000, dramatically improving factory utilization across Raytheon facilities.
The Navy deal addresses critical inventory replenishment needs, reflecting high-priority strategic procurement across both maritime and land-strike mission capabilities.
This award follows a recent $745 million order for advanced missile-defense interceptors, further reinforcing the strength of RTX’s Raytheon defense business unit.
RTX’s strong defense momentum was matched by a robust Q2 2026 earnings performance that beat Wall Street expectations across both revenue and profit metrics.
The company reported adjusted earnings per share of $1.89, surpassing consensus estimates of $1.66 by 23 cents and signaling broad operational strength across its business segments.
Net sales expanded 14.5% year-over-year to approximately $24.71 billion, clearing analyst expectations of $22.89 billion by a wide margin.
The commercial aviation side of the business contributed meaningfully, with Pratt & Whitney and Collins Aerospace capturing strong demand through maintenance, repair, and overhaul services.
Management responded to the strong quarter by raising full-year 2026 adjusted EPS guidance to a range of $7.10 to $7.25, with projected revenue of $95 billion to $96 billion.
Commercial aviation aftermarket demand continues to serve as a reliable secondary growth driver alongside the company’s expanding government defense contracts.
Analysts have maintained a generally constructive stance on the stock, with a Moderate Buy consensus and an average price target near $228.59.
RTX shares are already trading close to their 52-week high and have outperformed substantially over the past year, raising questions about near-term upside potential.
Valuation remains the principal concern for investors, as RTX trades at approximately 40 times trailing earnings and around 31 times forward earnings.
Despite a premium valuation and tight working capital ratios, heavy institutional ownership and low short interest continue to signal broad confidence in RTX’s long-term growth outlook.
