Summary of Lockheed Martin and RTX Earnings Reports

Date: July 23, 2026

Overview

Lockheed Martin and Raytheon Technologies (RTX), two of the largest defense contractors in the U.S., reported strong quarterly earnings that exceeded Wall Street expectations. Following these reports, both companies saw their stock prices rise by more than 5%. The results indicate a robust growth trajectory fueled by increasing global defense spending.

Key Financial Highlights

• Lockheed Martin:
  • Revenue: $20.06 billion (up 11% year-over-year)
  • EPS: $7.94
  • Raised full-year 2026 guidance to $79.75-81.75 billion in revenue and $29.95-30.65 in EPS.
  • Order backlog: Approximately $230 billion.
• Raytheon Technologies (RTX):
  • Revenue: $24.71 billion (up 14% year-over-year)
  • Adjusted EPS: $1.89
  • Raised full-year outlook to $95-96 billion in revenue and $7.10-7.25 in adjusted EPS.
  • Order backlog: Record $289 billion, including $119 billion in defense contracts.

Market Implications

The combined order backlog of Lockheed Martin and RTX now exceeds $500 billion, indicating that demand for defense equipment is outpacing the industry's production capacity. This trend suggests that the primary challenge for these companies is not demand or government funding, but rather the ability to expand manufacturing capacity to meet the needs of NATO's rearmament plans and replenish depleted inventories.

Conclusion

The strong earnings reports from Lockheed Martin and RTX reflect a significant growth opportunity within the defense sector, driven by increased military spending and a recovery in commercial aerospace. Investors should note the substantial order backlogs as a positive indicator of future revenue potential, while also recognizing the challenges related to production capacity that may impact the industry's ability to fulfill these orders.