RTX (NYSE: RTX), originally focused on refrigeration technology, provides a variety of products and services to the aerospace and defense industries.
The 13 defense contractor stocks tracked during the quarter reported collectively strong Q1 results, with revenues beating analysts’ consensus estimates by 3.4%.
Next quarter’s revenue guidance across the group came in 1.7% below analyst expectations, though share prices have held steady, rising 2.3% on average since the latest earnings results.
RTX reported revenues of $22.08 billion, up 8.7% year on year, exceeding analyst expectations by 2.7%, with a solid beat of analysts’ EBITDA estimates also recorded.
“RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments, driven by our continued focus on execution and delivering our backlog,” said RTX Chairman and CEO Chris Calio.
Despite the strong quarter, RTX delivered the weakest full-year guidance update of the entire group, and the stock is down 8.1% since reporting, currently trading at $179.98.
Mercury Systems (NASDAQ: MRCY), founded in 1981, scored the biggest analyst estimate beat among its peers, reporting revenues of $235.8 million, up 11.5% year on year, outperforming expectations by 14.2%.
Mercury Systems also beat analysts’ EPS and EBITDA estimates, sending its stock up 38.6% since reporting, with shares currently trading at $115.00.
Lockheed Martin (NYSE: LMT), headquartered in Maryland and famous for the F-35 aircraft, posted the weakest performance against analyst estimates, reporting revenues of $18.02 billion, flat year on year and missing expectations by 0.9%.
Lockheed Martin also posted a significant miss of analysts’ adjusted operating income estimates, with its stock down 3.2% since reporting, currently trading at $537.50.
General Dynamics (NYSE: GD), developer of aerospace, marine systems, combat systems, and information technology products, reported revenues of $13.48 billion, up 10.3% year on year, surpassing analyst expectations by 5.9%.
General Dynamics also recorded a solid beat of analysts’ EBITDA estimates, with the stock up 10.9% since reporting and currently trading at $347.97.
BWX (NYSE: BWXT), a manufacturer and service provider of nuclear components and fuel for government and commercial industries, reported revenues of $860.2 million, up 26.1% year on year, topping analyst expectations by 2.7%.
BWX delivered the fastest revenue growth among its peers and also recorded an impressive beat of analysts’ EBITDA estimates, though the stock is down 7.9% since reporting, currently trading at $199.51.
Defense contractors broadly benefit from long-term government contracts that provide predictable revenues, while geopolitical tensions, including Russia’s invasion of Ukraine and China’s aggression toward Taiwan, have continued to highlight the need for sustained defense spending.
Late in 2025 into early 2026, markets experienced a rotation away from artificial intelligence and crypto-related sectors into safer havens, before attention shifted abruptly in spring 2026 toward geopolitical risk, with the U.S. conflict with Iran becoming the dominant driver of market psychology.
