RTX Corp. (NYSE: RTX) and Lockheed Martin (NYSE: LMT) are heading into the close of the week with strong gains after both defense giants delivered impressive fiscal second-quarter 2026 results.
RTX reported record-breaking performance across all three of its major business units, including Collins Aerospace, Pratt & Whitney, and Raytheon, with double-digit revenue and earnings growth.
The company generated $2.9 billion in free cash flow during Q2, supported by $3.55 billion in operating cash flow, exceeding Wall Street expectations on multiple fronts.
RTX’s order backlog surged to a record $289 billion, up 22% year-on-year, comprising $170 billion in commercial orders and $119 billion in defense contracts, alongside $43 billion in new bookings.
RTX raised its full-year 2026 revenue forecast to between $95 billion and $96 billion, up from its prior estimate of $92.5 billion to $93.5 billion, reflecting strong forward demand.
RTX CEO Christopher Calio highlighted the scale of new awards during the earnings call: “Raytheon booked nearly $20 billion of awards, resulting in a book-to-bill in Q2 of 2.4. These bookings included over $5 billion of GEM-T Patriot effectors driven by international customers and our first domestic GEM-T production order in over 30 years.”
Lockheed Martin posted an equally compelling quarter, with higher revenue, improved profits, and $65 billion in new orders helping the company recover from prior-year program losses.
Lockheed also generated $2.9 billion in free cash flow, a sharp rebound from the $150 million cash outflow recorded in Q2 of the prior year, and its total backlog rose to a record $230 billion.
Major contract wins, including expanded THAAD interceptor production and a $10.5 billion logistics agreement with U.S. Special Operations Command, underpinned the strength of that backlog figure.
Lockheed CEO James Taiclet framed the significance of the new awards during the Q2 earnings call: “These awards are less about any single program than about what they were building in aggregate. Together, they strengthen the nation’s production base, adding resilience along with more manufacturing capacity, more sources of supply and greater surge capability.”
The U.S. House advanced a proposed $1.15 trillion National Defense Authorization Act for fiscal year 2027, reinforcing expectations that military spending will remain a durable political priority across party lines.
Retail sentiment on Stocktwits reflected the broader enthusiasm, with one user noting: “Lockheed $LMT — co-manufacturer of F22 Raptor – Stock Soars. Defense Is a Bipartisan Issue.”
Another retail trader pointed to improving sector dynamics, saying: “It hasn’t been a great year since February for this sector, but now there is new funding coming in and other factors — this sector is going to see some love.”
RTX shares gained 8% over the course of the week, while LMT climbed more than 11%, extending year-to-date gains of 14% and 17% respectively.
