Boeing Shares Rise After Winning $20 Billion U.S. Navy Fighter Jet Contract

The Pentagon selected Boeing over Northrop Grumman for the F/A-XX program, which will develop the Navy’s sixth-generation fighter aircraft. The full-scale development contract is valued at more than $20 billion, according to the Pentagon. Boeing shares rose around 2% following the announcement.

The F/A-XX award represents another major defense win for Boeing after the company secured the U.S. Air Force’s next-generation fighter contract in March 2025. That aircraft, officially designated the F-47, is also being developed as a sixth-generation fighter. Together, the programs give Boeing a central role in developing future combat aircraft for two branches of the U.S. military.

Boeing had already been viewed as a leading contender for the Navy contract. BNP Paribas aerospace and defense analyst Matthew Akers said market expectations generally favored Boeing despite the company having already won the Air Force’s F-47 competition. The Navy award confirms Boeing’s position across both major next-generation fighter programs.

The contracts could also provide a significant boost to Boeing’s defense operations at a time when the company is expanding its advanced military aircraft capabilities. Its St. Louis operations are expected to play an important role in the development and production of the new fighters. Boeing has been investing in additional manufacturing capacity in the region to support the F-47 and other future aircraft.

The company has said its new St. Louis manufacturing facility is designed to accommodate multiple next-generation aircraft programs. That capacity could allow Boeing to share infrastructure and expertise across the F-47 and F/A-XX programs as development progresses.

The Navy contract also strengthens Boeing’s position in the advanced military aircraft market relative to major defense competitors such as Northrop Grumman. Winning both sixth-generation fighter programs gives the company significant exposure to long-term U.S. defense modernization spending, although the aircraft remain in development and will require years of engineering, testing and investment before entering operational service.

For investors, the F/A-XX award adds another major program to Boeing’s defense backlog while broadening its exposure beyond commercial aviation. The more than $20 billion development contract provides a substantial long-term opportunity, while the combination of the F/A-XX and F-47 programs could make advanced combat aircraft an increasingly important part of Boeing’s defense business.