Lockheed Martin, RTX rise on earnings beats; one stock breaks out

Shares of Lockheed Martin and RTX (formerly Raytheon Technologies) surged on Tuesday after both defense contractors reported quarterly earnings that exceeded Wall Street expectations, driven by a surge in missile orders and a record backlog. Lockheed Martin, the world's largest defense company, saw its stock jump sharply after raising its full-year 2026 profit forecast and announcing a record $150 billion backlog, signaling strong demand for its F-35 fighter jets and missile systems. RTX also beat earnings estimates, benefiting from increased orders for Patriot air defense systems and other munitions as global tensions drive military spending. The gains highlight how the Pentagon's push to restock depleted weapons inventories, amid ongoing conflicts in Ukraine and the Middle East, is boosting defense contractors' bottom lines. Lockheed Martin now expects 2026 earnings per share of $26.50 to $27.00, up from its prior forecast, and revenue of $67 billion to $68 billion. The company's stock broke out of a consolidation pattern, reaching a new high. RTX reported second-quarter adjusted earnings of $1.35 per share, above analysts' estimates of $1.28, and revenue of $19.8 billion. Both companies are benefiting from long-term contracts as the U.S. and allies accelerate weapons purchases. Looking ahead, analysts expect further upside as the Pentagon's modernization plans and replenishment needs continue to drive orders, though supply chain constraints and inflation remain risks.