Lockheed Martin, RTX Boost 2026 Forecasts on Strong Weapons Demand

Defense giants Lockheed Martin and RTX raised their full-year 2026 financial outlooks, signaling sustained high demand as the Pentagon works to replenish weapons stockpiles depleted by global conflicts. The upgraded forecasts, which surpassed analyst expectations, sent shares of both companies sharply higher in Thursday trading.

Upgraded Outlook and Market Reaction

Investors responded positively to the announcements, which accompanied strong second-quarter earnings results. Shares of Lockheed Martin (LMT) climbed 10.6%, while RTX (RTX) saw its stock rise 7.7% following the news.

Both companies increased their revenue and profit projections for 2026, citing robust order books and a favorable government spending environment.

• Lockheed Martin now expects 2026 revenue between $79.75 billion and $81.75 billion, an increase from its prior range of $77.5 billion to $80 billion.
• RTX raised its 2026 adjusted sales forecast to a range of $95 billion to $96 billion, up from $92.5 billion to $93.5 billion. The company also lifted its adjusted profit guidance to $7.10-$7.25 per share.

Backlogs Swell Amid Geopolitical Tensions

The improved forecasts are underpinned by a surge in orders as the U.S. and its allies seek to restock munitions. According to Pentagon data cited by Reuters, the U.S. has used more than 50,000 rockets, missiles, and rocket-propelled munitions since 2022.

This demand has swelled the order backlogs for both contractors. Lockheed Martin's total backlog grew 38.3% from the previous year to $230.4 billion. RTX reported its backlog rose 22% to $289 billion, which includes $119 billion in defense-related orders.

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Key Business Segments Drive Growth

Specific weapons systems are driving significant revenue growth. Lockheed's Missiles and Fire Control unit saw revenue increase by nearly 20% to $4.1 billion, fueled by production ramp-ups for its PAC-3 and precision strike missiles. The company also noted higher production of its THAAD missile interceptors.

At RTX, sales in its Raytheon weapons business rose 18% to $8.27 billion, helped by strong demand for Patriot, Standard, and AMRAAM missile systems. RTX Chief Financial Officer Neil Mitchill told Reuters that European customers accounted for $7 billion of the $10 billion in international bookings for the Raytheon segment in the first half of the year.

Executive Commentary and Context

Company executives highlighted the urgent pace of government demand. "The government is giving us a lot more flexibility than they traditionally would have done... so that we can be faster," Lockheed Martin CEO Jim Taiclet said on an earnings call. He added that the message from the Department of Defense is consistently "faster, faster, faster."

The outlook is supported by a broader increase in defense spending. The U.S. House of Representatives recently passed a defense policy bill authorizing $1.15 trillion in military spending, and a record $1.5 trillion budget has been proposed for fiscal 2027, according to the source report.