Key Takeaways
- The U.S. Navy has granted Raytheon, an RTX division, a seven-year contract valued at $22.9 billion for Tomahawk cruise missile manufacturing.
- Production targets call for ramping up output to exceed 1,000 Tomahawk missiles annually.
- In the first half of 2026, RTX shipped triple the number of Tomahawks compared to the same 2025 period.
- The company’s latest quarterly results showed EPS of $1.89, surpassing forecasts by $0.23, while revenue climbed 14.5% year-over-year to $24.71 billion.
- Wall Street analysts maintain a “Moderate Buy” consensus on RTX with a mean price target of $228.59; shares opened Monday at $222.88.
RTX Corporation’s Raytheon division has secured a substantial $22.9 billion agreement with the U.S. Navy to boost Tomahawk cruise missile manufacturing. The seven-year deal was disclosed Monday by the Department of War.
This major award falls under the Department of War’s Arsenal of Freedom program. The initiative seeks to increase yearly Tomahawk missile output to more than 1,000 units, plus related support services.
Shares of RTX began Monday’s session at $222.88, gaining 0.26% during the trading day. The stock’s 52-week trading range spans from $150.61 to $226.88, positioning current prices near the upper end of that band.
Manufacturing momentum has been building steadily. During the first six months of 2026, RTX shipped three times the volume of Tomahawks compared to the corresponding 2025 timeframe. This represents a significant production acceleration.
Phil Jasper, President of Raytheon, emphasized the company’s commitment to expanding workforce capabilities, advancing technology, strengthening supply networks, and upgrading manufacturing facilities. “Tomahawk is the Navy’s most important strike weapon,” Jasper noted.
This contract provides RTX with the long-term visibility needed to grow its employee base, enhance production efficiency, and develop robust supply chain partnerships. The effort will involve collaboration with hundreds of small and medium-sized suppliers nationwide.
Financial Performance Supports Growth Trajectory
RTX’s recent financial metrics have demonstrated solid performance. On July 23rd, the company released quarterly results showing earnings per share of $1.89, exceeding analyst expectations of $1.66 by $0.23.
Quarterly revenue totaled $24.71 billion, surpassing the Street consensus of $22.89 billion and marking a 14.5% increase from the prior-year period. Management has established full-year 2026 EPS guidance in the range of $7.10 to $7.25.
The company currently maintains a market capitalization of $300.38 billion and trades at a price-to-earnings multiple of 39.24. Technical indicators show the 50-day moving average at $200.02 and the 200-day moving average at $194.87.
Street Sentiment and Ownership Trends
Analyst sentiment toward the stock remains constructive. RTX carries a consensus “Moderate Buy” recommendation with analysts projecting an average price target of $228.59.
Royal Bank of Canada upgraded its price objective to $250.00 after reviewing earnings results, maintaining an “outperform” stance. Susquehanna increased its target to $245.00 with a “positive” rating. Robert W. Baird established a $240.00 price goal.
Wells Fargo maintained an “equal weight” position but elevated its price target from $200.00 to $230.00. Among all analysts following RTX, the breakdown includes 14 Buy ratings, five Hold ratings, one Strong Buy, and one Sell.
Institutional ownership stands at 86.5% of outstanding shares. N.E.W. Advisory Services LLC initiated a fresh position during Q2, acquiring 5,590 shares valued at approximately $1.06 million.
RTX has announced a quarterly dividend distribution of $0.73 per share, scheduled for payment on September 3rd, translating to an annualized dividend of $2.92 and a yield of 1.3%.
Recent insider activity includes VP Kevin G. Dasilva disposing of 4,760 shares at an average price of $213.62 on July 24th, while insider Troy D. Brunk sold 8,557 shares at $210.29 on the same date.
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