Lockheed Martin, RTX jump after earnings beat. One is breaking out.

Defense giants Lockheed Martin and RTX topped Wall Street expectations early Thursday with their reported second-quarter earnings. The results come as hostilities between the U.S. and Iran ramp up again and the Department of Defense seeks congressional approval for a $1.5 trillion defense budget.

Lockheed Martin's revenue grew 11% to $20.1 billion for the quarter. Earnings came in at $7.94 a share compared to $1.46 in Q2 2025. They had a particularly easy comp this quarter because Lockheed Martin recorded $1.6 billion in program losses in the same time last year. Wall Street expected sales of $19.1 and earnings of $7.19, according to FactSet.

RTX's quarterly revenue rose 14.5% year over year to $24.7 billion. Earnings amounted to $1.89 a share, up 21.2% from Q2 2025. Analysts had expected revenue of $22.9 and EPS of $1.66, according to FactSet.

U.S. military contractors are gearing up for a period of sustained growth, as the Department of Defense races to replenish missile stockpiles depleted during the Iran war.

For example, Lockheed Martin signed contracts multiyear contracts worth $35 billion and $8.4 billion for different types of advanced missiles. Meanwhile, RTX's civilian aerospace divisions have been buoyed by a booming aftermarket industry.

Stocks Jump After Earnings

RTXRTX stock jumped more than 5% ahead of Thursday open, according to MarketSurge. Shares appear poised to just clear a 203.94 cup-with-handle buy point. Lockheed MartinLMT also rose over 5% in premarket action. But it's trying to reclaim its 200-day line after hitting a seven-month low earlier this week.

Lockheed Martin, RTX Raise Guidance

Both contractors raised their 2026 outlooks on the back of their strong second quarters.

RTX's now estimates adjusted sales will rise 8%-9% to $95 billion-$96 billion, up from an earlier range of $92.5 billion-$93.5 billion. The company updated its adjusted EPS guidance to a midpoint of $7.17, up from an earlier an earlier range that had a midpoint of $6.80.

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Lockheed Martin now expects 2026 sales of $79.75 billion-$81.75 billion and EPS of $29.95-$30.65. Its previous guidance targeted revenue at $77.5 billion-$80 billion and EPS of $29.35-$30.25.

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