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U.S. Aerospace & Defense Industry Analysis

UpdatedJan 20, 2026
DataAggregated Company Financials
Companies91
  • 7D3.1%
  • 3M13.7%
  • 1Y58.5%
  • YTD10.2%

The Aerospace & Defense industry is up 3.1% in the last week, with RTX up 4.0%. This takes the industry's 12 month performance to a gain of 59%. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

Has the U.S. Aerospace & Defense Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 20 Jan 2026US$1.5tUS$410.1bUS$32.0b42.6x48x3.7x
Thu, 18 Dec 2025US$1.3tUS$409.8bUS$32.0b36.3x40.8x3.2x
Sat, 15 Nov 2025US$1.3tUS$409.2bUS$32.2b38.5x40.3x3.2x
Mon, 13 Oct 2025US$1.3tUS$398.7bUS$31.3b38.9x41.4x3.3x
Wed, 10 Sep 2025US$1.2tUS$395.4bUS$31.1b34.4x38.7x3x
Fri, 08 Aug 2025US$1.2tUS$393.6bUS$31.1b36.3x38.9x3.1x
Sun, 06 Jul 2025US$1.1tUS$387.1bUS$29.9b35.9x38.2x2.9x
Tue, 03 Jun 2025US$1.1tUS$386.8bUS$30.0b33.3x36.1x2.8x
Thu, 01 May 2025US$949.4bUS$381.1bUS$28.8b31.3x32.9x2.5x
Sat, 29 Mar 2025US$949.2bUS$377.4bUS$28.8b30.2x32.9x2.5x
Mon, 24 Feb 2025US$899.1bUS$376.2bUS$30.0b32.9x30x2.4x
Wed, 22 Jan 2025US$924.0bUS$403.9bUS$27.9b35.6x33.1x2.3x
Fri, 20 Dec 2024US$867.4bUS$403.7bUS$28.0b32.9x31x2.1x
Sun, 17 Nov 2024US$929.8bUS$403.7bUS$27.8b34.1x33.4x2.3x
Tue, 15 Oct 2024US$956.8bUS$393.7bUS$23.6b33.8x40.5x2.4x
Thu, 12 Sep 2024US$879.1bUS$388.8bUS$23.3b33x37.8x2.3x
Sat, 10 Aug 2024US$856.4bUS$388.4bUS$23.2b32.5x37x2.2x
Mon, 08 Jul 2024US$789.0bUS$381.1bUS$24.0b34.3x32.8x2.1x
Wed, 05 Jun 2024US$811.0bUS$381.1bUS$23.8b31.8x34x2.1x
Fri, 03 May 2024US$788.1bUS$380.4bUS$23.7b29.2x33.3x2.1x
Sun, 31 Mar 2024US$605.8bUS$303.9bUS$18.8b32.4x32.1x2x
Tue, 27 Feb 2024US$574.4bUS$303.1bUS$18.6b31x30.9x1.9x
Thu, 25 Jan 2024US$577.1bUS$304.9bUS$20.9b29x27.7x1.9x
Sat, 23 Dec 2023US$574.7bUS$302.1bUS$20.9b28.3x27.5x1.9x
Mon, 20 Nov 2023US$552.3bUS$301.6bUS$20.9b27.9x26.5x1.8x
Wed, 18 Oct 2023US$543.5bUS$301.2bUS$22.4b26.3x24.3x1.8x
Fri, 15 Sep 2023US$526.4bUS$305.9bUS$22.9b25.2x23x1.7x
Sun, 13 Aug 2023US$561.7bUS$305.7bUS$22.8b25.9x24.7x1.8x
Tue, 11 Jul 2023US$576.5bUS$298.0bUS$21.6b25.7x26.7x1.9x
Thu, 08 Jun 2023US$563.3bUS$300.3bUS$21.9b24.4x25.8x1.9x
Sat, 06 May 2023US$561.5bUS$298.4bUS$22.0b22.8x25.5x1.9x
Mon, 03 Apr 2023US$577.4bUS$294.7bUS$21.8b24.2x26.5x2x
Wed, 01 Mar 2023US$580.9bUS$292.8bUS$21.8b22.7x26.7x2x
Fri, 27 Jan 2023US$575.0bUS$291.7bUS$22.2b25.4x25.9x2x
Price to Earnings Ratio

25.9x


Total Market Cap: US$575.0bTotal Earnings: US$22.2bTotal Revenue: US$291.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 32.3x202420252026
Current Industry PE
  • Investors are optimistic on the American Aerospace & Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 48.0x which is higher than its 3-year average PE of 32.3x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.7x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 12% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market-0.55%
Industrials2.19%
Aerospace & Defense3.06%
Aerospace and Defense3.06%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
RTX RTXUS$201.924.0%
+US$10.5b		60.6%PE41.1x
NOC Northrop GrummanUS$666.906.6%
+US$5.9b		32.2%PE23.7x
LMT Lockheed MartinUS$582.434.3%
+US$5.6b		15.0%PE32.1x
RKLB Rocket LabUS$96.3011.2%
+US$5.2b		208.0%PS92.8x
TDG TransDigm GroupUS$1.45k4.9%
+US$3.8b		6.8%PE43.8x

Latest News

EVTL
US$6.05
Vertical Aerospace
7D
-1.8%
1Y
-36.0%

Is Vertical Aerospace (NYSE:EVTL) In A Good Position To Invest In Growth?

Jan 18
Is Vertical Aerospace (NYSE:EVTL) In A Good Position To Invest In Growth?
RKLB
US$96.30
Rocket Lab
7D
11.2%
1Y
208.0%
GE
US$325.12
General Electric
7D
-0.6%
1Y
73.4%
HWM
US$224.89
Howmet Aerospace
7D
2.4%
1Y
76.9%
ATI
US$124.35
ATI
7D
-0.06%
1Y
112.7%
LMT
US$582.43
Lockheed Martin
7D
4.3%
1Y
15.0%
NOC
US$666.90
Northrop Grumman
7D
6.6%
1Y
32.2%

NOC: Future Defense Budgets And Buyback Limits Will Shape Cash Flow Durability

Analysts have nudged their fair value estimate for Northrop Grumman to about $665 per share from roughly $663, reflecting recent price target increases anchored in expectations for mid single digit organic growth, relatively stable guidance into 2026, and potential budget tailwinds for key defense programs such as Sentinel, B 21, TACAMO, E 2D, and related nuclear deterrence and munitions work, while also factoring in scenario analysis around future buyback constraints. Analyst Commentary Recent research paints a mixed picture for Northrop Grumman, with optimism around growth visibility and program funding set against questions about future capital returns and policy risk.
RTX
US$201.92
RTX
7D
4.0%
1Y
60.6%

RTX: Defense Policy Shifts And Commercial Aerospace Demand Will Shape Balanced Prospects

RTX's fair value estimate has been adjusted slightly higher to about $197 from about $195, as analysts factor in updated price targets and ongoing expectations for strong commercial aerospace demand, along with potential changes to defense budgeting and capital returns across the sector. Analyst Commentary Recent research on RTX focuses on how potential defense policy shifts and strong commercial aerospace demand could interact with capital return policies and long term growth expectations.
AXON
US$636.04
Axon Enterprise
7D
-0.9%
1Y
5.0%
VWAV
US$11.91
VisionWave Holdings
7D
-12.3%
1Y
1.8%
AZ
US$7.35
A2Z Cust2Mate Solutions
7D
-3.3%
1Y
8.1%
FJET
US$10.54
Starfighters Space
7D
-12.5%
1Y
n/a
TDG
US$1,450.00
TransDigm Group
7D
4.9%
1Y
6.8%
BA
US$247.68
Boeing
7D
1.3%
1Y
41.1%

BA: Defense Wins And Widebody Demand Will Support Balanced Future Prospects

Analysts have made a modest upward adjustment to their price target for Boeing to about $247 per share from roughly $244, citing updated assumptions for fair value, discount rate, revenue growth, profit margins and future P/E levels. What's in the News EVA Airways plans to purchase four 787-9 aircraft from Boeing, with a total transaction value capped at US$1.94b, subject to board approval and price negotiation based on market levels (client announcement).
KTOS
US$130.72
Kratos Defense & Security Solutions
7D
9.2%
1Y
271.2%

KTOS: Orbit Deal And Defense Programs Will Drive Future Upside Potential

Narrative Update The analyst fair value estimate for Kratos Defense & Security Solutions has moved sharply higher from about US$78 to roughly US$137. Analysts point to raised Street price targets, updated revenue guidance, and the planned Orbit Technologies acquisition as key supports for the higher range of potential outcomes.
ASLE
US$7.55
AerSale
7D
-2.6%
1Y
11.9%