Boeing Co. has been awarded a massive contract exceeding $20 billion to develop the U.S. Navy’s next-generation F/A-XX stealth fighter, beating out competitor Northrop Grumman Corp.
- Boeing prevailed over Northrop Grumman to win the high-stakes, classified F/A-XX contract valued at more than $20 billion.
- The new stealth fighter will begin replacing aging F/A-18 Super Hornets and EA-18G Growlers in carrier air wings starting in the 2030s.
- The award marks Boeing’s second major fighter jet victory in two years following its 2025 Air Force F-47 contract, boosting market confidence despite ongoing commercial program challenges.
Boeing Co.(BA) on Tuesday bagged a military defense contract valued at more than $20 billion, beating rival defense contractor Northrop Grumman (NOC) to build the U.S. Navy’s next-generation carrier-based fighter jet.
The Defense Department announced the award Tuesday for the classified F/A-XX program. The major military victory drove Boeing shares up 2% in extended hours while Northrop Grumman stock fell 4.1%.
Expanding Defense Dominance
The Navy win marks Boeing’s second major military aviation triumph in successive years. In 2025, the company secured the U.S. Air Force’s stealth F-47 program over Lockheed Martin Corp.(LMT)
The contract win arrives alongside additional positive momentum for Boeing’s defense and aerospace divisions.
NASA recently indicated plans for up to five manned missions to the International Space Station utilizing Boeing’s Starliner capsule, offering momentum to a program previously hindered by technical delays. The military success also helps offset ongoing commercial headwinds, as federal aviation regulators examine a recent software glitch impacting the company’s 737 Max line.
Fleet Modernization
The F/A-XX program is intended to succeed the aging F/A-18 Hornet fleet, integrating into carrier air wings alongside the F-35C. According to a statement from the Navy, the new platform will begin supplementing F/A-18E/F Super Hornets and EA-18G Growler aircraft during the 2030s before fully replacing them as the fleet transitions.
The project moves forward after facing resistance from defense officials. Defense Secretary Pete Hegseth and Deputy Secretary Steve Feinberg previously opposed launching the program, raising concerns about whether domestic defense industrial capacity could handle two overlapping major jet developments, Bloomberg reported.
Naval authorities declined to publicly disclose production totals, overall financial estimates, or precise delivery schedules. Officials cited operational security and the need to preserve technological advantages as reasons for keeping contract timelines and procurement numbers confidential.
BA Stock: Retail View
Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes.
BA stock has lost 13% year-to-date.
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