Lockheed Martin and RTX both beat second-quarter estimates and lifted their 2026 outlooks, pushing each stock more than 5% higher before Thursday’s open. The two defense charts, however, are pointing in opposite directions.
Defense contractors Lockheed Martin and RTX both topped Wall Street expectations with their second-quarter results early Thursday. The beats landed as tensions between the U.S. and Iran ramped up again and the Department of Defense pushed Congress to approve a $1.5 trillion defense budget.
Both beat Q2 estimates
Lockheed Martin’s revenue grew 11% to $20.1 billion, with earnings of $7.94 a share against $1.46 in Q2 2025. The company had an easy comparison because it recorded $1.6 billion in program losses in the same period last year. Wall Street had expected sales of $19.1 and earnings of $7.19, according to FactSet.
RTX posted faster top-line growth, with revenue up 14.5% year over year to $24.7 billion. Earnings reached $1.89 a share, up 21.2% from Q2 2025, beating the $1.66 EPS analysts had modeled on $22.9 in sales.
Missile demand underpins the run
Both companies are gearing up for sustained growth as the Department of Defense races to replenish missile stockpiles depleted during the Iran war. Lockheed Martin has signed multiyear contracts worth $35 billion and $8.4 billion for different types of advanced missiles, while RTX’s civilian aerospace divisions have been buoyed by an active aftermarket.
The earnings reaction split the two stocks. RTX jumped more than 5% ahead of Thursday’s open, according to MarketSurge, leaving shares poised to just clear a 203.94 cup-with-handle buy point. Lockheed Martin also rose over 5% in premarket action, yet it is still trying to reclaim its 200-day moving average after hitting a seven-month low earlier this week.
Guidance raised for 2026
Both contractors lifted their 2026 outlooks after the strong quarter. RTX now estimates adjusted sales will rise 8%-9% to $95 billion-$96 billion, up from an earlier range of $92.5 billion-$93.5 billion. It also lifted its adjusted EPS midpoint to $7.17, from $6.80.
Lockheed Martin now expects 2026 sales of $79.75 billion-$81.75 billion and EPS of $29.95-$30.65, above its prior targets of $77.5 billion-$80 billion in revenue and EPS of $29.35-$30.25.
Source: Investor’s Business Daily
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