RTX Corporation (NYSE: RTX) is cementing its dominance in the global missile market through its Raytheon business, driven by surging defense budgets and accelerating demand for precision weapons systems.
Raytheon’s combat-proven portfolio spans several critical military capabilities, including the Advanced Medium-Range Air-to-Air Missile, AIM-9X, Tomahawk, Standard Missile, and SM-6 interceptors.
These systems give RTX meaningful exposure across air-to-air combat, naval warfare, air defense, and long-range strike missions in modern conflict environments.
Investments in next-generation weapons technologies are further expanding Raytheon’s capabilities, positioning the business to address increasingly sophisticated and evolving global threats.
Rising allied demand is pushing RTX to scale production of key systems, with Tomahawk, AMRAAM, and SM-6 all seeing capacity expansions as the United States and partner nations work to rebuild inventories.
RTX closed the second quarter of 2026 with a record $289 billion backlog, a 22% increase year over year, which included $119 billion specifically tied to defense programs.
The company secured $43 billion in new awards during the quarter, with nearly $20 billion attributed to its Raytheon business alone, underscoring the breadth of customer demand.
More than $5 billion in GEM-T Patriot awards and $1.8 billion for AMRAAM were among the highlights, alongside additional contract wins for SPY-6 radar systems and AIM-9X missiles.
RTX shares have surged 43% over the past year, significantly outpacing the broader industry’s 5.2% gain over the same period, reflecting investor confidence in the company’s defense trajectory.
Despite this strong performance, RTX trades at a forward 12-month Price/Earnings ratio of 29.19X, a notable discount to its industry average of 34.03X, suggesting potential upside remains for investors.
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved higher over the past 60 days, and the stock currently carries a Zacks Rank of Buy.
Lockheed Martin Corporation (NYSE: LMT) is another key player to watch, with a broad portfolio spanning PAC-3, THAAD, JASSM, Javelin, and hypersonic technologies that position it to benefit from rising global defense investment.
Northrop Grumman Corporation (NYSE: NOC) also offers significant exposure to the growing missile market through its advanced propulsion systems, sensors, long-range strike platforms, and next-generation munitions development programs.
