RTX Corporation reached an impressive milestone on January 5, 2026, with its stock peaking at $188.14. This achievement is fueled by an increase in defense orders and a growing demand for commercial aviation, highlighting robust investor confidence. The recent stock surge reflects a wider trend of escalating global military spending, coupled with strategic contract wins that underscore the company’s strength in the aerospace and defense sectors. This remarkable performance caps off an extraordinary year for RTX, setting the stage for continued momentum into 2026.
The stock surpassed its previous record of $187.25 set on January 2 and showcased a remarkable 60% increase throughout 2025, culminating in an impressive 64.62% return over the past year. Key defense contracts significantly contributed to this performance, including a $1.7 billion agreement to supply the Patriot air defense system for Spain and a $785 million order for Tomahawk missiles.
The aerospace and defense industry is benefiting from unprecedented demand amidst rising geopolitical tensions that are prompting nations to enhance their military capabilities. RTX’s all-time high is a testament to investor belief in the sustained need for advanced defense systems, alongside a recovery in commercial aviation demanding increased production and services.
Recent significant contract wins validate RTX’s competitive positioning in the global defense landscape. Among these, the December 2025 deal with Spain for four Patriot systems represents the largest such order from the nation. The contract encompasses comprehensive support, including radars, launchers, command and control stations, and technician training, with collaboration from Spanish defense firms.
Further illustrating their market strength, RTX also secured a $785.2 million contract for 350 Tomahawk Block V cruise missiles intended for U.S. military use and allies, along with additional contracts totaling $634 million for various missile systems. Such achievements highlight the ongoing demand for proven defense technologies.
Financially, RTX commands a substantial backlog of $251 billion in unfilled defense and commercial orders, ensuring visibility of revenue for the coming years. As of January 5, the company’s market capitalization reached approximately $253.6 billion, reflecting faith among investors. In light of surging demand, RTX has repeatedly revised its 2025 earnings guidance upward, now forecasting earnings per share between $6.10 and $6.20.
Analysts, including those from JPMorgan, note a promising growth trajectory for RTX leading into 2026, emphasizing the company’s capacity for backlog conversion and expanding profit margins. With an average price target set at $195.36 and some projections extending as high as $215, analysts see considerable upside.
The robust defense spending trend is further supported by ongoing geopolitical tensions in regions such as Eastern Europe, the Middle East, and Asia-Pacific, which are driving nations to bolster their military procurement efforts. As countries invest in modernizing their defense infrastructures, demand for systems like the Patriot air defense remains high. Additionally, the recovery in commercial aviation offers RTX a diversified revenue stream, allowing it to capitalize on both defense and commercial sectors.
Looking ahead, RTX’s performance reflects its current valuation and substantial future earnings potential as defense budgets continue to expand. Although the company faces some challenges in managing growing contract backlogs and supply chain complexities, the upcoming earnings call on January 27, 2026, will be pivotal, as management will likely provide guidance for 2026 and discuss opportunities for margin growth.
With continued support for defense spending and a recovery in commercial aviation, RTX stands poised to leverage these trends, making it an exciting prospect for investors in the coming months.