Lockheed Martin, RTX raise 2026 outlook as Pentagon restocking boosts defense demand

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Lockheed, RTX lift 2026 outlook

Highlights

Lockheed Martin raises 2026 revenue guidance to $79.75–$81.75 billion, exceeding analyst consensus, after missiles and fire control revenue jumps 20% to $4.1 billion.
Lockheed's backlog surges 38.3% year on year to $230.4 billion, and RTX's total backlog rises 22% to $289 billion, reflecting sustained global defense demand.
RTX lifts its 2026 adjusted sales forecast to $95–$96 billion and profit outlook to $7.10–$7.25 per share, with Raytheon driving two-thirds of the guidance upgrade.

Forecast upgrades amid stronger missile demand

As reported by Reuters, Lockheed Martin and RTX say demand remains firm as the Pentagon moves to replenish weapons stockpiles depleted by conflicts stretching from Ukraine to Iran. Investors welcomed the outlook, sending Lockheed shares up 10.6% and RTX shares up 7.7%.

President Donald Trump is urging defense companies to raise output as the U.S.-Israeli war on Iran and the prolonged Russia-Ukraine conflict continue to drain U.S. inventories. He has also proposed a record $1.5 trillion military budget for fiscal 2027, while the U.S. House of Representatives this week passes its version of a defense policy bill authorizing $1.15 trillion in military spending.

Lockheed says its missiles and fire control revenue rises nearly 20% to $4.1 billion, helped by higher production of PAC-3, precision strike missiles and THAAD interceptors. The company signed a $35 billion U.S. government contract in June to quadruple THAAD output, and CEO Jim Taiclet says officials are giving the company more flexibility to speed production.

Lockheed now expects 2026 revenue of $79.75 billion to $81.75 billion, above its previous range of $77.5 billion to $80 billion and ahead of analyst expectations of $79.14 billion, according to LSEG data. Its backlog grows 38.3% from a year earlier to $230.4 billion, and CFO Evan Scott says the company is also discussing partnerships, particularly in Europe, to expand output faster.

Backlog growth signals broader sector momentum

RTX also reports rising defense and aerospace demand, with total backlog up 22% year on year to $289 billion, including $119 billion in defense and $170 billion in commercial aerospace. The company says demand for aircraft maintenance, repair and overhaul remains strong as supply-chain problems and delayed deliveries keep older fleets in service longer.

Sales at Raytheon, RTX's weapons unit, rise 18% to $8.27 billion, driven by Patriot, Standard and AMRAAM missile systems. CFO Neil Mitchill tells Reuters that about half of Raytheon's first-half bookings, or $10 billion, comes from international customers, with $7 billion of that total from Europe.

RTX raises its 2026 adjusted sales forecast to $95 billion to $96 billion from $92.5 billion to $93.5 billion, above analyst estimates of $94.08 billion. It also increases its adjusted profit outlook to $7.10 to $7.25 per share from $6.70 to $6.90, while analysts at JPMorgan say roughly two-thirds of the guidance increase comes from Raytheon, with another quarter from Collins.

RTX CEO Chris Calio says the company sees additional opportunities in the Middle East amid current developments, supported by established customer ties in both that region and Europe. Both RTX and Lockheed top Wall Street second-quarter estimates, reinforcing expectations that missile replenishment and allied defense spending continue to support the sector.

In our earlier article on Lockheed Martin’s Q2 2026 results and outlook, we noted that LMT jumped after reporting stronger sales and lifting its full-year 2026 earnings and revenue guidance. The piece also highlighted that the stock’s technical setup turned strongly bullish but appeared overbought, making key support levels important for judging whether the rally could extend or pause.

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