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How Is RTX Expanding Its Software-Defined Radar Capabilities?

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Key Takeaways

  • RTX won an Office of Naval Research contract to develop radar software for future naval systems.
  • Raytheon's software-defined architecture lets radar blocks operate independently for faster upgrades.
  • Raytheon targets better spectrum sharing as commercial and military communications crowd frequency bands.

RTX Corporation (RTX - Free Report) , through its Raytheon business, continues strengthening its advanced radar and sensing capabilities through next-generation software-driven technologies. The company recently secured a contract from the Office of Naval Research to further develop advanced radar software for future naval radar systems. The effort reflects growing defense demand for smarter and more adaptable sensing technologies capable of operating in increasingly congested electromagnetic environments.

A key focus of this program is enabling radar building blocks to function independently through software-defined architectures. This approach allows a single radar system to support multiple missions simultaneously while adapting more quickly to changing operational requirements. Unlike traditional hardware-intensive upgrades, software-driven systems provide greater flexibility, faster capability enhancements and lower long-term modification costs.

The technology is also designed to improve spectrum sharing and operational efficiency. As commercial and military communications continue expanding, managing crowded frequency bands has become increasingly important for defense systems. By improving how radar systems operate within the electromagnetic spectrum, Raytheon is positioning itself to support future naval and defense modernization priorities.

RTX already maintains a strong presence in advanced radar, missile defense and sensing technologies through its Raytheon business. The company develops systems such as SPY-6 radars, Lower Tier Air and Missile Defense Sensor and other advanced sensing platforms supporting air, missile and naval defense programs. Continued investments in software-defined systems and next-generation radar architectures could further strengthen RTX’s long-term position in advanced defense electronics and mission systems.

Companies Expanding Advanced Radar & Defense Electronics

Defense companies are increasingly investing in software-driven sensing systems, advanced radars and electronic warfare technologies to support modern battlefield operations and multi-domain missions. Companies like L3Harris Technologies, Inc. (LHX - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are also expanding capabilities in this area.

L3Harris Technologies develops advanced sensors, electronic warfare systems and mission networks supporting connected defense operations and spectrum management capabilities.

Northrop Grumman focuses on advanced radar systems and multi-domain defense solutions supporting air, missile and space-based missions.

Earnings Estimates for RTX

The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.86% and 8.98%, respectively.

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RTX Stock Trading at a Premium

RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.46X compared with the industry average of 2.41X.

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RTX Stock Price Performance

Over the past year, RTX shares have rallied 28.3% against the industry’s 0.8% decline.

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RTX’s Zacks Rank

RTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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