We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX vs. General Dynamics: Which Defense Contractor Offers More Upside?
Read MoreHide Full Article
Key Takeaways
RTX and GD benefit from rising defense budgets, geopolitical tensions and strong order backlogs.
RTX invested $163 million to expand aerospace MRO services and defense production capacity.
RTX tops GD in 2026 growth estimates, one-year stock gains and earnings surprise history.
Growing defense budgets and rising geopolitical tensions continue to create opportunities across the aerospace and defense industry, benefiting companies like RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) . Both companies have strong order backlogs that provide revenue visibility and support their long-term growth prospects.
RTX has a diversified business that includes commercial aerospace and defense operations. The company is benefiting from strong demand for its Pratt & Whitney aircraft engines and Collins Aerospace systems as global air travel continues to recover. Its defense business is also supported by demand for missile systems, radar technologies and other advanced military solutions.
General Dynamics is a leading defense contractor with operations across aerospace, marine systems, combat systems and technologies. The company benefits from demand for its Gulfstream business jets, military vehicles, naval platforms and technology solutions. Its broad exposure to U.S. defense programs and long-term government contracts supports steady business growth.
As global defense spending continues to rise and military modernization remains a priority for many countries, both RTX and General Dynamics are well-positioned to benefit from these trends. However, a closer comparison of their financial performance and growth outlook can help determine which stock currently offers the stronger investment opportunity.
Tailwinds for RTX
RTX continues to strengthen its business through investments that expand its aerospace and defense capabilities. In June 2026, its Collins Aerospace unit announced a $63 million investment to expand its maintenance, repair and overhaul (MRO) facility in Malaysia. The larger facility will help RTX support the region's growing aircraft fleet and rising demand for maintenance services.
The company is also increasing its defense production capacity. Earlier in the month, RTX announced a $100 million investment to expand its facility in Portsmouth, RI. The expansion will support higher production of Patriot GEM-T subcomponents and increase testing capacity for the Lower Tier Air and Missile Defense Sensor, helping the company meet growing demand for air and missile defense systems.
These investments reflect RTX's focus on expanding its aerospace services and defense operations, which should support its long-term growth prospects.
Tailwinds for GD
General Dynamics continues to win new contracts across its defense and technology businesses, reflecting solid demand from the United States and international customers. Significant awards won by GD in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program.
In the fourth quarter of 2025, the company received two contracts for more than $4 billion for its EAGLE tactical vehicles from Germany. The company also received contracts worth $600 million for its bridges from Norway and the United Kingdom. Moreover, the company received a contract worth $640 million for its light armored vehicles and additional logistics vehicles from Canada.
Proposed increases in U.S. defense spending may further support growth, especially for its Marine Systems unit.
How Does the Zacks Consensus Estimate Compare for RTX & GD?
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.7% and 9.9%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 sales and earnings per share (EPS) implies an improvement of 4.7% and 7.2%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RTX & GD
In the past year, RTX has outperformed GD. While RTX’s shares surged 28.2%, GD surged 22.2%.
Image Source: Zacks Investment Research
Valuation for RTX & GD
GD is trading at a forward sales multiple (P/E F12M) of 1.66, below RTX’s forward sales multiple of 2.53.
Image Source: Zacks Investment Research
Surprise History
RTX delivered an average earnings surprise of 12.65% in the last four quarters, while GD delivered an average earnings surprise of 5.27% in the last four quarters.
Final Call
Both RTX and General Dynamics are well-positioned to benefit from rising global defense spending and ongoing military modernization efforts. GD continues to secure major defense contracts and offers exposure to naval platforms, combat systems and business jets.
RTX, however, appears to have a slight edge. The company benefits from a balanced mix of commercial aerospace and defense businesses, providing multiple growth drivers. Its earnings and revenue growth expectations for 2026 are stronger than GD's, and the company has recently announced strategic investments to expand both its aerospace services and defense production capabilities.
RTX has also delivered stronger stock price performance over the past year and a better earnings surprise track record than General Dynamics, reflecting solid execution across its businesses.
Both RTX and GD currently carry a Zacks Rank #3 (Hold). However, considering RTX's stronger growth outlook, recent investments and better share price performance, it stands out as the more attractive choice right now.
View the Zacks #1 Rank List
Image: Bigstock
RTX vs. General Dynamics: Which Defense Contractor Offers More Upside?
Key Takeaways
Growing defense budgets and rising geopolitical tensions continue to create opportunities across the aerospace and defense industry, benefiting companies like RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) . Both companies have strong order backlogs that provide revenue visibility and support their long-term growth prospects.
RTX has a diversified business that includes commercial aerospace and defense operations. The company is benefiting from strong demand for its Pratt & Whitney aircraft engines and Collins Aerospace systems as global air travel continues to recover. Its defense business is also supported by demand for missile systems, radar technologies and other advanced military solutions.
General Dynamics is a leading defense contractor with operations across aerospace, marine systems, combat systems and technologies. The company benefits from demand for its Gulfstream business jets, military vehicles, naval platforms and technology solutions. Its broad exposure to U.S. defense programs and long-term government contracts supports steady business growth.
As global defense spending continues to rise and military modernization remains a priority for many countries, both RTX and General Dynamics are well-positioned to benefit from these trends. However, a closer comparison of their financial performance and growth outlook can help determine which stock currently offers the stronger investment opportunity.
Tailwinds for RTX
RTX continues to strengthen its business through investments that expand its aerospace and defense capabilities. In June 2026, its Collins Aerospace unit announced a $63 million investment to expand its maintenance, repair and overhaul (MRO) facility in Malaysia. The larger facility will help RTX support the region's growing aircraft fleet and rising demand for maintenance services.
The company is also increasing its defense production capacity. Earlier in the month, RTX announced a $100 million investment to expand its facility in Portsmouth, RI. The expansion will support higher production of Patriot GEM-T subcomponents and increase testing capacity for the Lower Tier Air and Missile Defense Sensor, helping the company meet growing demand for air and missile defense systems.
These investments reflect RTX's focus on expanding its aerospace services and defense operations, which should support its long-term growth prospects.
Tailwinds for GD
General Dynamics continues to win new contracts across its defense and technology businesses, reflecting solid demand from the United States and international customers. Significant awards won by GD in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program.
In the fourth quarter of 2025, the company received two contracts for more than $4 billion for its EAGLE tactical vehicles from Germany. The company also received contracts worth $600 million for its bridges from Norway and the United Kingdom. Moreover, the company received a contract worth $640 million for its light armored vehicles and additional logistics vehicles from Canada.
Proposed increases in U.S. defense spending may further support growth, especially for its Marine Systems unit.
How Does the Zacks Consensus Estimate Compare for RTX & GD?
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.7% and 9.9%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 sales and earnings per share (EPS) implies an improvement of 4.7% and 7.2%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RTX & GD
In the past year, RTX has outperformed GD. While RTX’s shares surged 28.2%, GD surged 22.2%.
Image Source: Zacks Investment Research
Valuation for RTX & GD
GD is trading at a forward sales multiple (P/E F12M) of 1.66, below RTX’s forward sales multiple of 2.53.
Image Source: Zacks Investment Research
Surprise History
RTX delivered an average earnings surprise of 12.65% in the last four quarters, while GD delivered an average earnings surprise of 5.27% in the last four quarters.
Final Call
Both RTX and General Dynamics are well-positioned to benefit from rising global defense spending and ongoing military modernization efforts. GD continues to secure major defense contracts and offers exposure to naval platforms, combat systems and business jets.
RTX, however, appears to have a slight edge. The company benefits from a balanced mix of commercial aerospace and defense businesses, providing multiple growth drivers. Its earnings and revenue growth expectations for 2026 are stronger than GD's, and the company has recently announced strategic investments to expand both its aerospace services and defense production capabilities.
RTX has also delivered stronger stock price performance over the past year and a better earnings surprise track record than General Dynamics, reflecting solid execution across its businesses.
Both RTX and GD currently carry a Zacks Rank #3 (Hold). However, considering RTX's stronger growth outlook, recent investments and better share price performance, it stands out as the more attractive choice right now.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.