RTX Shares Rally 9.4% as FY 2026 Defense Budget Hits $838.7B
RTX stock has climbed 9.4% over the past three months, outpacing Howmet Aerospace’s 7.8% and General Dynamics’ 2.2%, driven by robust defense spending outlook following the $838.7 billion FY 2026 Defense Appropriations Act. The shares trade at a forward P/E of 28.48X, below the aerospace defense average of 32.61X.
1. Defense Spending Boost
The FY 2026 Defense Appropriations Act secured $838.7 billion in discretionary funding, enhancing contract visibility and order backlogs for defense prime contractors such as RTX.
2. Recent Share Performance
RTX shares have gained 9.4% over the past three months, outperforming General Dynamics’ 2.2% rise and Howmet Aerospace’s 7.8%, reflecting strong investor confidence in the defense segment.
3. Valuation and Comparison
RTX trades at a forward 12-month P/E of 28.48X, under the aerospace and defense industry average of 32.61X and well below Howmet’s 49.65X, indicating a relative valuation discount.