RTX (RTX) and Lockheed Martin (LMT) raised their full-year guidance after both defense contractors reported second-quarter results above Wall Street's expectations, lifting their shares in Thursday trading.
RTX now projects adjusted per-share earnings of $7.10 to $7.25 for 2026, up from the previous $6.70 to $6.90 range. Full-year adjusted sales are now pegged at $95 billion to $96 billion, compared with the prior outlook of $92.5 billion to $93.5 billion. Analysts in a FactSet survey are looking for non-GAAP EPS of $6.95 and sales of $94.21 billion.
For the June quarter, RTX's adjusted EPS rose to $1.89 from $1.56 a year earlier, exceeding the FactSet-polled consensus of $1.66. Revenue surged 14% to $24.71 billion, while the Street expected $22.89 billion.
Shares of RTX were up 7.5% intraday Thursday, taking year-to-date gains to 14%.
"Based on our first-half execution and the demand strength we're seeing across our commercial and defense markets, we're raising our full-year outlook for adjusted sales, EPS and free cash flow," Chief Executive Chris Calio said during an earnings conference call, according to a FactSet transcript.
All three RTX business segments -- Raytheon defense solutions, Pratt & Whitney, and Collins Aerospace -- delivered higher sales year over year. The company's backlog reached a record $289 billion, up 22% year over year, Calio told analysts.
Separately, Lockheed Martin said it now expects 2026 EPS of $29.95 to $30.65, up from the most recent outlook of $29.35 to $30.25. Full-year sales are now estimated at $79.75 billion to $81.75 billion, compared with $77.50 billion to $80 billion previously expected. Analysts are looking for EPS of $29.88 and sales of $79.17 billion.
Lockheed Martin reported EPS of $7.94 for the second quarter, more than five times the $1.46 reported for the prior-year quarter and surpassing the consensus of $7.19. Sales jumped 11% to $20.06 billion, while the Street projected $19.34 billion.
Lockheed said its backlog surged to an all-time high of $230.42 billion at the end of the second quarter from $193.62 billion at the end of 2025. The company's shares were advancing by 11% in Thursday trade, and are now up about 18% so far this year.
Second-quarter revenue in the aeronautics division rose to $8.11 billion from $7.42 billion a year earlier, while the rotary and mission systems business jumped to $4.35 billion from nearly $4 billion. Both the missiles and fire control and space segments also posted gains.
"We are raising our 2026 guidance, reflecting our confidence that our strategy is gaining momentum, and we will continue to produce sustained profitable growth over the next few years," CEO Jim Taiclet told analysts in an earnings call, according to a FactSet transcript.
On Tuesday, aerospace and defense technology provider Northrop Grumman (NOC) raised its full-year guidance as strong second-quarter orders pushed its backlog to a record high.
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