Does RTX’s Shift Toward Modular, Software-Defined Weapons Architectures Change The Bull Case For RTX (RTX)?

• In May 2026, Raytheon, an RTX business, secured new U.S. government work ranging from next-generation naval radar software to advanced composable rocket motors, while also beginning deliveries of the Lightweight Command Launch Unit for the Javelin system to the U.S. Army.
• Together, these programs highlight RTX’s push toward modular, software-driven and adaptable weapon and sensor architectures that can be upgraded and tailored through software rather than repeated hardware redesigns.
• We’ll now examine how RTX’s first LWCLU deliveries and advanced rocket motor work may influence its existing investment narrative.

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RTX Investment Narrative Recap

To own RTX, you need to believe the company can keep turning its large backlog and defense-tech expertise into consistent earnings, while controlling costs in engines and complex programs. The latest LWCLU deliveries and rocket motor work support the defense backlog and technology story, but do not materially change the near term focus on execution risks in engines and on large government programs.

The most relevant recent update here is Raytheon’s DARPA Burn n’ Go Phase 2 award for composable rocket motors, which reinforces RTX’s push into modular, software-centric weapons architectures. Together with LWCLU fielding, it ties into the existing catalyst of a large, tech-heavy defense backlog that still depends on sustained government demand and timely contract funding.

Yet, while the backlog looks reassuring, investors should also be aware of the risk that defense budgets could shift away from large hardware programs toward...

Read the full narrative on RTX (it's free!)

RTX's narrative projects $107.8 billion revenue and $10.2 billion earnings by 2029.

Uncover how RTX's forecasts yield a $215.27 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for RTX range from US$166.04 to US$215.27, underlining how differently individual investors can view the same stock. You can weigh those views against RTX’s reliance on government and defense contracts, which could affect how much of its current backlog ultimately turns into revenue and earnings over time.

Explore 3 other fair value estimates on RTX - why the stock might be worth 7% less than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your RTX research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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