Boeing stock jumps on $20 billion Navy fighter jet win

What happened: Boeing ( BA ) stock jumped 2% on Wednesday.

What's behind the move: The Pentagon selected the aerospace giant over rival Northrop Grumman ( NOC ) to develop the US Navy's next-generation fighter jet.

The contract for the sixth-generation F/A-XX Strike Fighter is worth more than $20 billion for the full-scale development phase, according to the Pentagon .

What else you need to know: The award gives Boeing contracts to develop the next-generation fighter programs for both the US Navy and Air Force.

In March 2025, the Air Force awarded Boeing the contract to develop its sixth-generation fighter, officially designated the F-47.

"We believe consensus saw Boeing as the favorite in this competition, despite having already won the Air Force's F-47 fighter jet competition in 2025," said Matthew Akers, aerospace and defense analyst at BNP Paribas.

The two awards also strengthen Boeing's position in advanced military aircraft and its St. Louis operations, where the company is investing in new manufacturing capacity for the F-47.

Boeing has said its new St. Louis facility is designed to support multiple next-generation aircraft programs.

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market.