Lockheed Martin and RTX shares surged after both US defence giants raised their 2026 financial forecasts, citing robust demand as the Pentagon accelerates weapons replenishment. According to reports from NDTV Profit, Lockheed Martin stock climbed as much as 12.1% to an intraday high of $576 from its previous close of $514 before trading around $559, up 8.8%. RTX shares jumped as much as 9.6% to $213.50 from $194.88 before easing to around $209, still up 7.3%.
The improved outlook comes as the US government ramps up defence procurement following years of heavy weapons usage in Ukraine and the recent US-Iran conflict. As reported by NDTV Profit, according to Pentagon data, the United States has used more than 50,000 rockets, missiles and rocket-propelled munitions since the Russia-Ukraine war began in 2022 and during military operations against Iran. President Donald Trump has called on defence manufacturers to increase production capacity while proposing a record $1.5 trillion military budget for fiscal 2027, with the US House of Representatives already passing a defence policy bill authorising $1.15 trillion in military spending.
Lockheed Martin reported strong growth in its missile business as demand for advanced defence systems continued to rise. According to reports from NDTV Profit, revenue from its Missiles and Fire Control division climbed nearly 20% year-on-year to $4.1 billion, driven by increased production of PAC-3 missiles, Precision Strike Missiles and THAAD missile interceptors. The company recently secured a $35 billion US government contract to quadruple THAAD interceptor production, with its total backlog expanding 38.3% to $230.4 billion from $166.5 billion a year earlier. Chief Executive Jim Taiclet noted that the US government is providing greater flexibility to accelerate production, stating "The government is giving us a lot more flexibility than they traditionally would have done... so that we can be faster."
RTX also raised its full-year outlook after reporting strong momentum across both its defence and commercial aerospace businesses. As reported by NDTV Profit, its total backlog rose 22% year-on-year to $289 billion, including $119 billion in defence orders and $170 billion in commercial aerospace contracts. Sales at Raytheon, RTX's defence division, increased 18% to $8.27 billion, supported by demand for Patriot, Standard and AMRAAM missile systems. Chief Financial Officer Neil Mitchill told Reuters that international customers accounted for roughly half of Raytheon's bookings during the first half of the year, with European nations contributing nearly $7 billion of the $10 billion total.
The upgraded forecasts from both companies suggest that rising geopolitical tensions are creating a sustained investment cycle in global defence. According to reports from NDTV Profit, Lockheed Martin now expects 2026 revenue between $79.75 billion and $81.75 billion, up from its previous forecast of $77.5 billion to $80 billion. RTX now expects 2026 adjusted sales of $95 billion to $96 billion, compared with its earlier forecast of $92.5 billion to $93.5 billion, and raised its adjusted earnings guidance to $7.10-$7.25 per share from $6.70-$6.90 previously. The company also expects additional production partnerships in Europe as governments across the region continue expanding defence spending.
