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Can Rising Counter-Drone Demand Support RTX's Defense Growth Outlook?
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Key Takeaways
RTX completed three successful tests of its upgraded Coyote Block 2C RM counter-drone system.
RTX's Coyote upgrade adds a tactical rocket motor, new seeker and warhead to address broader drone threats.
Rising counter-drone demand from the United States and its allies could support RTX's defense growth.
RTX Corporation (RTX - Free Report) is positioned to benefit from growing demand for counter-drone technologies as military forces seek more effective ways to address evolving unmanned aerial threats. The increasing use of drones in surveillance and combat has raised the need for systems that can detect, track and neutralize threats quickly and efficiently.
RTX’s Raytheon business is advancing its Coyote interceptor family to address these requirements. On Oct. 12, 2026, Raytheon announced the successful completion of three tests of its upgraded Coyote Block 2C+RM system, progressing from concept to testing in 15 months. The development builds on existing Coyote variants, which have intercepted hundreds of drones.
The upgrade includes a tactical rocket motor designed to improve launch speed and engagement times, along with a new seeker and warhead intended to address a broader range of drone threats. Initial testing also demonstrated integration with the existing counter-drone architecture, supporting the system’s potential deployment within established defense networks.
The program highlights RTX’s focus on improving proven technologies to meet changing battlefield requirements. A common design across the Coyote family could also help the company scale its solutions across different counter-drone missions.
As the United States and its allies invest in protecting military bases, personnel and critical infrastructure from unmanned threats, demand for counter-drone systems could create opportunities for RTX. Further testing, integration and eventual procurement will be important to the program’s commercial prospects.
Defense Stocks to Keep on the Radar
Growing investment in counter-drone technology could also benefit defense contractors developing systems to detect and defeat unmanned aerial threats.
Lockheed Martin (LMT - Free Report) : Lockheed Martin develops integrated air and missile defense systems, including PAC-3 interceptors, supporting demand for technologies that detect and neutralize incoming threats.
Northrop Grumman (NOC - Free Report) : Northrop Grumman provides advanced sensors, command-and-control systems, and electronic warfare technologies that can support drone detection, threat identification and integrated defense operations.
The Zacks Rundown for RTX
Shares of RTX have surged 17.1% in the past year against the industry’s 18.9% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.49X compared with its industry’s average of 2.10X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has remained the same over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
Can Rising Counter-Drone Demand Support RTX's Defense Growth Outlook?
Key Takeaways
RTX Corporation (RTX - Free Report) is positioned to benefit from growing demand for counter-drone technologies as military forces seek more effective ways to address evolving unmanned aerial threats. The increasing use of drones in surveillance and combat has raised the need for systems that can detect, track and neutralize threats quickly and efficiently.
RTX’s Raytheon business is advancing its Coyote interceptor family to address these requirements. On Oct. 12, 2026, Raytheon announced the successful completion of three tests of its upgraded Coyote Block 2C+RM system, progressing from concept to testing in 15 months. The development builds on existing Coyote variants, which have intercepted hundreds of drones.
The upgrade includes a tactical rocket motor designed to improve launch speed and engagement times, along with a new seeker and warhead intended to address a broader range of drone threats. Initial testing also demonstrated integration with the existing counter-drone architecture, supporting the system’s potential deployment within established defense networks.
The program highlights RTX’s focus on improving proven technologies to meet changing battlefield requirements. A common design across the Coyote family could also help the company scale its solutions across different counter-drone missions.
As the United States and its allies invest in protecting military bases, personnel and critical infrastructure from unmanned threats, demand for counter-drone systems could create opportunities for RTX. Further testing, integration and eventual procurement will be important to the program’s commercial prospects.
Defense Stocks to Keep on the Radar
Growing investment in counter-drone technology could also benefit defense contractors developing systems to detect and defeat unmanned aerial threats.
Lockheed Martin (LMT - Free Report) : Lockheed Martin develops integrated air and missile defense systems, including PAC-3 interceptors, supporting demand for technologies that detect and neutralize incoming threats.
Northrop Grumman (NOC - Free Report) : Northrop Grumman provides advanced sensors, command-and-control systems, and electronic warfare technologies that can support drone detection, threat identification and integrated defense operations.
The Zacks Rundown for RTX
Shares of RTX have surged 17.1% in the past year against the industry’s 18.9% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.49X compared with its industry’s average of 2.10X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has remained the same over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.