RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.
Country
Sector
Themes
Also in
Price· split & dividend adjusted
No price history for this asset yet.
News & notes movingRTX
Defense & Geopolitical Fragmentation▲impact 4
Raytheon Wins $22.9 Billion Tomahawk Contract
The U.S. military has awarded RTX Corporation's Raytheon business a $22.9 billion contract to accelerate Tomahawk missile production, a key part of replenishing depleted stockpiles. The seven-year deal will boost annual output to 1,000 missiles from 60, and it builds on a framework agreement signed in February. RTX ended Q2 with a record backlog of $289 billion, including $119 billion in defense, and raised its full-year sales guidance to $95–96 billion. However, the production ramp-up poses execution risks, and the stock trades at a premium valuation. Hedge funds increased their stakes in Q1, with Fisher Asset Management holding the largest position.
The projected cost of acquiring the Pentagon's F-35 fighter fleet has risen by about $51 billion since late 2023, bringing the total to approximately $536 billion, a 10% increase from $485 billion, according to a government report and the F-35 program office. The increase includes roughly $32 billion for aircraft and engine procurement and $19 billion for research and development, and reflects a shift by the Marine Corps from some F-35B jets to the more expensive carrier-based F-35C. As of late July, 872 of the 2,470 aircraft planned for the U.S. military had been delivered. The cost increase underscores the program's importance to Lockheed Martin, which builds the aircraft, and major suppliers including RTX's Pratt & Whitney and Northrop Grumman. Another $900 million was added after reassessing the Block 4 modernization package, which is years behind schedule. The $536 billion figure covers acquisition and is separate from an estimated $1.5 trillion in operating and support expenses, putting the F-35's total cost near $2 trillion over roughly 90 years.
RTX Unit Collins Aerospace Completes F-35 EPACS Altitude Testing
RTX unit Collins Aerospace has completed altitude testing of its Enhanced Power and Cooling System, or EPACS, for the F-35 aircraft. The testing validated EPACS performance in high altitude operating conditions relevant to real-world flight. EPACS is designed as a next-generation power and thermal management system to support ongoing technology upgrades across the F-35 program. RTX is a large US aerospace and defense company with a market value of about $282.9b, and Collins Aerospace sits within this broader group as a key supplier of advanced systems for programs such as the F-35.
Raytheon's AIM-424 Malice missile with 300-mile range begins testing
RTX Corp. subsidiary Raytheon has begun testing a new long-range air-to-air missile called the AIM-424 Malice, which has a range of nearly 300 miles. The missile can be carried by fighter jets such as the F-35 and F-22, according to Bloomberg. It debuted Saturday at the Tailhook Association's annual symposium in Reno, Nevada. The Navy did not say when the Malice would be deployed.
Rocket Lab Secures Record $266 Million Space Force Contract
Rocket Lab has secured a $266 million contract from the U.S. Space Force to provide around a dozen suborbital launches, with an option for more, marking the company's largest launch contract award ever. The first launch is expected by the end of 2026. Earlier this year, the Pentagon awarded Rocket Lab a $190 million contract to support hypersonic flight testing, and the company is working with RTX on the proposed Golden Dome missile defense initiative. Hedge fund sentiment was mixed in the first quarter, with the number of funds holding Rocket Lab shares dipping to 43 from 45, though Marshall Wace raised its stake by 1,213% to $120.8 million and Tudor Investment Corp opened a new position of about $27.3 million.
Polymarket's public ledger may be leaking military secrets
New research suggests Polymarket's public blockchain may be structurally built to leak military secrets, with 152 wallets winning $8 million on military and defense markets at a 97.2% win rate. The Anti-Corruption Data Collective analyzed every settled Polymarket market through May 5, 2026, and identified 556 'Orca' wallets that staked at least $2,500 on long-shot outcomes within a single hour. Within that group, 152 wallets concentrated on military and defense markets, collectively winning $8 million with an average win rate of 97.2%, far above the roughly 52% win rate across military markets broadly. The research also found that Orca bets often attract fast-following wagers from larger 'Whale' accounts and automated trading bots, amplifying the signal; for example, hours before Israel's June 2025 strikes on Iran, an Orca bet was followed by a bot wager of $200,000 and a whale wager of $100,000 on the same outcome. Master Sgt. Gannon Ken Van Dyke turned roughly $33,000 into more than $400,000 once the raid was confirmed, according to the Department of Justice, and his case became the public face of insider trading on prediction markets, though he was not among the 152 Orcas because he built his position more gradually. The House Oversight Committee opened a probe into Polymarket and Kalshi in May, and the CFTC has brought a civil complaint against Van Dyke, while Polymarket says it has referred dozens of suspicious wallets to authorities.
Motorola Solutions to Acquire D-Fend Solutions for $1.5 Billion
Motorola Solutions is acquiring counter-drone technology firm D-Fend Solutions in a deal valued at $1.5 billion. The acquisition adds D-Fend's counter-unmanned aerial systems capabilities, which can detect and safely take control of unauthorized drones and direct them to a designated landing area, to Motorola's public-safety portfolio. D-Fend's technology is deployed across airports, critical infrastructure, stadiums, military bases and borders in more than 30 countries, creating cross-selling opportunities for Motorola. The company faces competition from Axon Enterprise and RTX Corporation in the counter-drone space. Motorola stock has declined 2.4% over the past year, and its shares trade at 25.58 times forward earnings, below the wireless equipment industry's 31.44.
Raytheon Wins $22.9 Billion Tomahawk Production Contract
RTX subsidiary Raytheon has been awarded a seven-year, $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy and allies. Under the agreement, Raytheon plans to raise annual Tomahawk output to more than 1,000 missiles and provide associated support, having already delivered three times more Tomahawks in the first half of 2026 than in the same period of 2025. The company will invest in workforce, technology, supply chain, and facilities, working with hundreds of small and mid-sized U.S. suppliers to scale production. The multi-year award provides long-term visibility and could make the Tomahawk program an increasingly important contributor to Raytheon's defense growth.
RTX Wins $22.9 Billion Tomahawk Deal and Raises Guidance
RTX Corporation's Raytheon unit secured a US$22.90 billion, seven-year Tomahawk cruise missile contract with the U.S. Navy and reported Q2 2026 results that exceeded expectations alongside higher full-year guidance and continued dividend growth. The long-duration defense award and stronger-than-expected quarterly performance underline RTX's ability to convert its sizeable backlog into contracted, cash-generating programs. The new contract reinforces near-term earnings visibility, while the biggest ongoing risk remains the company's dependence on government budgets that could shift away from high-cost hardware. RTX's narrative projects $111.8 billion revenue and $10.9 billion earnings by 2029, with a fair value estimate of $232.27, a 5% upside to its current price.
Pentagon procurement surge to benefit major defense contractors
The Pentagon is pushing defense contractors to rapidly scale production of missile interceptors, munitions, and drones following significant inventory depletion, creating a broad procurement surge across the U.S. defense industrial base. Deputy Defense Secretary Steve Feinberg gave industry leaders 21 days to submit proposals for faster deliveries, while President Donald Trump has pressed contractors to direct more capital toward production capacity rather than buybacks and dividends. Within the roughly $1.5 trillion defense budget request, autonomous vehicles and drone defense at $122 billion and missiles and missile defense at $123.7 billion represent the two largest growth areas. Lockheed Martin and Northrop Grumman are the dominant large contractors with direct interceptor and drone program exposure, while Kratos Defense & Security Solutions and AeroVironment offer more focused drone and counter-drone exposure. Lockheed Martin posted $65 billion in new orders in its most recent quarter, pushing its backlog to a record $230.4 billion, and Boeing and RTX reached framework agreements with the Pentagon to boost production of SM-3 Block IIA and Block IB interceptor components.
Boeing Signs Seven-Year Frameworks to Expand SM-3 Output
Boeing signed seven-year framework agreements with the US Department of War and Raytheon, an RTX business, to increase production of avionics and ejector assemblies for the Standard Missile-3, the sea-based interceptor designed to hit missile threats outside the atmosphere. Boeing, the DoW and prime contractor Raytheon will ramp production ahead of contract while they negotiate a multi-year award under the frameworks, committing capacity before the money is locked in. The output rise covers hardware for the SM-3 Block IB and Block IIA variants. Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the deal gives a clear demand signal to build and deliver SM-3 interceptors. No financial terms were disclosed. The arrangement follows a similar structure Boeing agreed with the DoW and Lockheed Martin to increase output of PAC-3 Missile Segment Enhancement seekers.
The Pentagon is pressing U.S. defense contractors to dramatically accelerate weapon production, with deputy defense secretary Steve Feinberg giving major contractors 21 days to submit plans for significantly faster delivery schedules. This directive follows critical munition shortages, with some key missile inventories depleted by over 65% after five months of war with Iran, and the Center for Strategic and International Studies estimates replenishment could take more than three years. The production push is expected to benefit defense majors like Lockheed Martin, RTX, Boeing, and General Dynamics, and investors may consider diversified defense ETFs such as iShares U.S. Aerospace & Defense ETF, Invesco Aerospace & Defense ETF, and State Street SPDR S&P Aerospace & Defense ETF to capture the upcoming rally.
Raytheon awarded $745 million contract for SM-3 IIA interceptors
Raytheon, an RTX business, has received a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors. The SM-3 IIA is a cooperatively developed program between Japanese industry and Raytheon, featuring a larger rocket motor and enhanced kinetic warhead to engage short- to intermediate-range ballistic missile threats. RTX has invested in expanding capacity, including a recent $115 million expansion of its Alabama missile integration facility that will increase integration and delivery capacity by over 50%. Production under this contract will be completed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.
Pentagon gives defense contractors 21 days to propose faster weapons production
The Pentagon is pressing U.S. defense contractors to sharply accelerate weapons production, giving industry leaders 21 days to submit proposals for faster deliveries and increased output of priority weapons. Deputy Defense Secretary Steve Feinberg issued the directive in a memo, and Pentagon spokesman Sean Parnell confirmed the initiative is part of a broader effort to rebuild the defense industrial base. The push comes amid concerns over supplies of advanced missile interceptors, with the Center for Strategic and International Studies estimating that the U.S. inventory of Patriot interceptors may have fallen by at least 65% since before the Iran conflict, to between 759 and 827 from about 2,330, while THAAD inventories stand between 234 and 278 interceptors, at least 38% below the prewar level of about 452. The Pentagon's demand could translate into additional orders and capacity investments for contractors, though the biggest constraint may be how quickly manufacturers can expand factories and increase output for sophisticated missile systems. The effort faces uncertainty in Congress, where a defense spending bill is stalled amid opposition to the military campaign against Iran and resistance to a White House proposal to increase Pentagon spending to $1.5 trillion from about $900 billion last year.
Pentagon asks Boeing, Lockheed, RTX to speed weapons output
The Pentagon has asked major U.S. defence contractors to accelerate production and delivery of critical weapons systems as the Iran war strains military stockpiles. Deputy Defence Secretary Steve Feinberg sent the request to companies including Boeing, Lockheed Martin and RTX in an August 5 letter, calling years-long development cycles unacceptable and demanding dramatically faster program schedules and expanded production capacity now. The Pentagon is seeking quicker procurement and higher output of wide-area surveillance equipment, air-defence sensors, missile interceptors and missile-tracking systems, while also identifying satellite communications, next-generation air-defence equipment and Lockheed Martin's Next Generation Interceptor as priority programmes. Defence companies were asked to submit plans by late August detailing more aggressive delivery schedules, expanded manufacturing capacity or both, as the Pentagon seeks $18.2 billion in additional war funding for missile interceptors.
Raytheon wins two U.S. defense contracts worth $1.28 billion
Raytheon has secured two U.S. defense contracts with a combined value of $1.28 billion for missile and weapons-system production. The Missile Defense Agency awarded a $745.4 million contract for Standard Missile-3 Block IIA missiles, with $553.3 million obligated at the time of award and work expected through February 2031. The U.S. Army also provided a $536.0 million contract modification for the TOW Weapon System, bringing that contract's total cumulative value to $750.8 million and extending through August 2027.
Trump denies missile shortages, says U.S. has 'massive amounts' of munitions
President Donald Trump has dismissed recent media reports of U.S. missile stockpiles diminishing due to the Iran war, posting on Truth Social that the U.S. has massive amounts of munitions, especially of certain types, and that large amounts are being manufactured and shipped as needed. He added that defense companies are building the largest number of plants and factories in the country's history and threatened that leakers of these treasonous statements are being hunted down with long-term jail sentences sought. The Washington Post reported that Trump clashed with Defense Secretary Pete Hegseth at Camp David last week over the reported munitions shortages, with Trump demanding answers and Hegseth blaming his deputy Stephen Feinberg, though White House press secretary Karoline Leavitt called the story 100% fake news. A source told The Post that the shortages, particularly in long-range guided missiles and air-defense interceptors, were part of the reason Trump called off additional strikes against Iran in recent days. The U.S. reportedly launched over 850 Tomahawk cruise missiles and more than 1,000 Patriot and Terminal High Altitude Area Defense systems in the first month of the Iran war, and used more than 1,300 tactical ballistic missiles in the initial weeks of fighting.
Pratt & Whitney, an RTX business, has been awarded a nearly $1.3 billion undefinitized contract for F135 engine spare parts. The Indefinite Delivery, Indefinite Quantity contract will fund fiscal year 2026 F135 initial spare parts requirements, deployable spare packages, depot lay-ins and associated support equipment for U.S. and international F-35 customers. The F135 powers all three variants of the F-35 Lightning II, and Pratt & Whitney has delivered more than 1,500 production engines to 20 allied nations. The contract aims to strengthen the global sustainment network, which supports 42 bases and 13 ships worldwide, and advance readiness for the F-35 fleet.
Pentagon seeks $18.2 billion for advanced missile replenishment
The Pentagon’s $67 billion emergency funding request for this fiscal year includes $18.2 billion to replace advanced missiles such as the Patriot, Navy Tomahawks, and the Army’s Thaad interceptor, according to documents provided to Congress. The breakdown includes $3.28 billion for three versions of the Navy’s RTX Corp. family of standard missile interceptors and $100 million to buy a classified Lockheed Martin air-to-air weapon called the Joint Advanced Tactical Missile, which has not yet been fielded. Separately, RTX unit Pratt and Whitney received a $1.3 billion modification to a U.S. Navy contract covering spares for the F135 propulsion system and the Joint Strike Fighter program.
RTX Reports Q2 Beat, Raises 2026 Outlook on Record $289 Billion Backlog
RTX Corporation reported second-quarter 2026 revenue of US$24.71 billion, up from US$21.58 billion a year earlier, with net income rising to US$2.14 billion from US$1.66 billion and basic earnings per share from continuing operations reaching US$1.58. The company also raised its full-year 2026 sales and profit guidance, supported by a 22% year-over-year increase in backlog to a record US$289 billion spanning commercial aftermarket and defense programs. While the enlarged order book reinforces near-term contract visibility, engine reliability issues and supply chain constraints remain key risks, particularly if Pratt & Whitney’s GTF-related maintenance bottlenecks lead to higher warranty costs or delivery disruptions. The backlog-driven catalyst strengthens RTX’s investment narrative, though execution risks tied to grounded fleets and capital-intensive operations persist.
Airbus hints at up to 890 aircraft deliveries for full-year target, second-quarter profit up 54%
European aerospace giant Airbus on the 29th gave a bullish outlook for its full-year 2026 aircraft delivery target, suggesting it could reach up to around 890 units, up from the previous target of about 870. Second-quarter results saw adjusted operating profit rise 54% year-on-year to 2.43 billion euros, with revenue up 28% to 20.53 billion euros, beating market expectations. CEO Guillaume Faury struck a conciliatory tone regarding relations with Pratt & Whitney, a unit of US-based RTX, with which Airbus had been at odds over engine supply delays, and said there would be no issues for 2026. Second-quarter aircraft deliveries hit a quarterly record of 237 units, helped by improvements in delays to China and engine supply problems. The full-year outlook was maintained, including existing targets such as adjusted operating profit of 7.5 billion euros.
Willis Lease Finance Corporation has signed a five-year agreement with RTX’s Pratt & Whitney to provide storage and lease return services for PW1100G-JM, PW1500G, PW1900G, PW4000 and IAE AG V2500 engines. The services will be performed from Willis Lease’s facilities in Coconut Creek, Florida and Bridgend, Wales, supporting Pratt & Whitney’s growing aftermarket storage requirements. The agreement builds on a decades-long relationship and was strengthened by quality reviews of Willis Engine Repair Center, a subsidiary of Willis Lease, as well as its technical capabilities and maintenance and storage training initiatives. Austin C. Willis, CEO of Willis Lease, said the deal reflects Pratt & Whitney’s confidence in the company’s team, facilities and technical capabilities.
RTX Raises 2026 Sales and Profit Outlook on Strong Aftermarket and Defense Demand
RTX Corporation lifted its 2026 sales and profit outlook, citing sustained demand for commercial aircraft maintenance and military systems. The company now projects adjusted sales of $95 billion to $96 billion, up from a prior range of $92.5 billion to $93.5 billion, and adjusted earnings per share of $7.10 to $7.25, up from $6.70 to $6.90. The revised forecast came during the second quarter earnings call, where RTX reported quarterly revenue of $24.7 billion, a 14% year-over-year increase, and adjusted earnings per share of $1.89, up 21%. The Pratt & Whitney unit saw a 16% sales rise to $8.89 billion, while the Raytheon defense business grew 18%, and Collins Aerospace posted an 8% increase. The company's total backlog expanded 22% to $289 billion, with $170 billion in commercial aerospace and $119 billion in defense orders.
Dow edges higher while Nvidia drop weighs on Nasdaq
The Dow Jones Industrial Average edged higher at midday on July 27, while the Nasdaq Composite slipped as a decline in Nvidia shares offset optimism from cooling geopolitical tensions. The Dow was up 0.13% to 52,017.19, the S&P 500 fell 0.33% to 7,387.76, and the Nasdaq dropped 0.44% to 24,840.43. RTX Corp climbed 2.61% to $218.28 on strong second-quarter earnings, and SAP surged 7.4% to $171.79, extending last week's gains after beating earnings expectations. Reddit rose 6.7% to $171.79 on optimism ahead of its upcoming earnings report. Oil prices fell sharply, with WTI crude down almost 7% to $83.15 a barrel, following news of a pause in strikes between the U.S. and Iran, which helped lift the Dow slightly. Investors are bracing for further volatility and will be watching the Federal Reserve meeting this week, where rates are widely expected to remain unchanged, though inflationary pressures could prompt a rate increase before year-end. Renewed artificial intelligence valuation concerns also weighed on markets ahead of earnings from Microsoft, Meta Platforms, Apple, and Amazon, with investors focused on capital expenditure plans.
Sixteen of 19 industrial companies beat EPS estimates this week
Sixteen out of 19 industrial companies that reported quarterly results this week exceeded earnings per share expectations. Lockheed Martin posted EPS of $7.94, beating by $0.74, and raised its 2026 sales guidance to $79.75 billion to $81.75 billion. RTX reported non-GAAP EPS of $1.89, topping estimates by $0.23, and lifted its full-year adjusted sales forecast to $95 billion to $96 billion. 3M delivered adjusted earnings of $2.40 a share, ahead of the $2.25 consensus, and raised its 2026 adjusted EPS outlook to $8.80 to $8.95. Honeywell Technologies earned an adjusted $1.95 per share, exceeding the $1.82 estimate, and narrowed its 2026 sales guidance to $19.8 billion to $20 billion while raising its adjusted earnings forecast to $8.05 to $8.35 a share.
Defense tech investors face losses despite $37.5 billion Iran war spending
Investors who bet on a defense windfall from the U.S. war in Iran have instead watched major contractors lose value, even as the conflict has cost $37.5 billion and the Pentagon seeks a $1.5 trillion budget. Northrop Grumman is down over 30%, L3Harris Technologies has fallen over 20%, and Lockheed Martin has declined nearly 13%, while Raytheon Technologies recovered to up 4% after better-than-expected earnings. Analysts say much of the good news was already priced in, and history shows the best defense returns often come before conflicts begin. Meanwhile, venture capital poured a record $19.8 billion into defense tech startups in the first quarter of 2026, though the 15 highest-valued startups still account for less than 1% of Pentagon contracting dollars.
Rockwell Collins ESA wins $332.6 million U.S. defense contract for fighter jet helmet systems
Rockwell Collins ESA Vision Systems, a joint venture between Collins Aerospace and Elbit Systems of America, has won an estimated $332.6 million U.S. defense contract. The fixed-price contract covers spare parts and repair services for the Joint Helmet Mounted Cueing System used on F-15, F-16, and F-18 fighter jets. It includes a six-year base period and a six-month option, with work scheduled to be completed by July 23, 2032. Funding comes from fiscal 2026 through 2032 Defense Working Capital Funds, military service funds, and Foreign Military Sales funds. The Defense Logistics Agency Weapon Support is the contracting activity.
Defense ETFs Gain Focus as Lockheed, RTX, Northrop Beat Earnings and US Military Spending Hits Record
Defense ETFs are drawing investor attention after major contractors Lockheed Martin, RTX, and Northrop Grumman reported second-quarter 2026 earnings that beat estimates, while the U.S. House advanced a record $1.15 trillion military spending bill. Lockheed Martin posted adjusted earnings of $7.94 per share on net sales of $20.06 billion, with its backlog reaching $230.42 billion. RTX reported adjusted earnings of $1.89 per share on revenues of $24.71 billion, and its backlog climbed 22% to $289 billion, including $43 billion in new awards. Northrop Grumman delivered adjusted earnings of $7.68 per share on sales of $10.88 billion, with a total backlog of $95.68 billion. The sector has been buoyed by heightened geopolitical tensions, including the Middle East conflict and President Trump's call for expanded weapons production, alongside the fiscal 2027 National Defense Authorization Act authorizing the record spending. ETFs such as iShares U.S. Aerospace & Defense ETF, Invesco Aerospace & Defense ETF, SPDR S&P Aerospace & Defense ETF, Global X Defense Tech ETF, First Trust Indxx Aerospace & Defense ETF, and U.S. Global Technology and Aerospace & Defense ETF offer exposure to the trend.
Lockheed Martin and RTX Raise 2026 Revenue Forecasts on US Military Weapons Replenishment
US defense giants Lockheed Martin and RTX have raised their full-year 2026 revenue forecasts. Lockheed Martin now expects revenue between 79.75 billion and 81.75 billion dollars, up from its previous forecast of 77.5 billion to 80 billion dollars. RTX raised its adjusted revenue outlook to between 95 billion and 96 billion dollars, up from 92.5 billion to 93.5 billion dollars. The upgrades come as the Pentagon's weapons stockpiles have been depleted by conflicts in the Middle East and the invasion of Ukraine, driving replenishment demand. Both companies also reported second-quarter earnings that beat market expectations, sending Lockheed Martin shares up 10.6 percent and RTX shares up 7.7 percent after the announcements. Lockheed Martin's order backlog rose 38.3 percent year-on-year to 230.4 billion dollars, while RTX's backlog climbed 22 percent to 289 billion dollars. RTX's chief financial officer disclosed that of the 10 billion dollars in weapons business orders in the first half of this year, 7 billion dollars came from European customers.
Military Sector Bucks Market Trend, Great Wall Military Industry Hits Two Consecutive Limit-Ups
In early trading on July 24, the three major A-share indices were mixed, while the military sector bucked the trend and strengthened. Great Wall Military Industry hit its second consecutive daily limit-up, with North Long Dragon, Construction Industry, and Chengdian Guangxin also rising. On the news front, overnight US military giants Lockheed Martin surged over 10% and Raytheon Technologies rose over 7%, while the US military completed its 13th consecutive night of strike operations against Iran. Institutional research reports point out that military equipment benefits from multiple overlapping catalysts, including the implementation of the top-level defense science and innovation plan under the 15th Five-Year Plan and the mass equipping of the entire military with new gear, with ample order backlogs at industry chain enterprises.
Dow plunges over 500 points on oil-driven inflation fears and Big Tech's AI spending spree
The Dow Jones Industrial Average tumbled 506.93 points on Thursday, while the Nasdaq sank more than 2%, amid concerns that inflation will accelerate from oil prices surging past $100 a barrel and worries over massive artificial intelligence spending by technology giants. The S&P 500 fell 90.66 points to close at 7,408.30, and the Nasdaq dropped 553.21 points to end at 25,137.69. Brent crude oil closed above $100 for the first time since May, after tensions in the Middle East intensified, with the United States launching a new round of airstrikes on Iran and President Trump threatening a major military response. The yield on the 10-year U.S. Treasury note surged to its highest level since early 2025 ahead of the Federal Reserve meeting next week, with investors pricing in a 64% chance the Fed will hold rates steady at the July 28-29 meeting and an 83% probability of a rate hike in September. Alphabet shares plunged 7% after revealing that capital spending in the second quarter of 2026 jumped 100% to $44.9 billion and raising its full-year capital spending forecast to between $195 billion and $205 billion. Tesla shares tumbled 14.5% after earnings missed expectations and the company posted its first negative free cash flow in more than two years. Lockheed Martin and RTX shares surged 10.5% and 7.3% respectively after raising their sales and profit forecasts on increased demand for equipment maintenance.
RTX Stock Soars After Strong Earnings Beat and Raised Guidance
Shares of Raytheon jumped 7.2% after the aerospace and defense company reported second-quarter earnings that beat expectations and raised its full-year guidance. The company posted adjusted earnings per share of $1.89 on revenue of $24.71 billion, a 14.5% increase from the prior year, and lifted its full-year sales outlook to $95.5 billion at the midpoint, up from $93 billion. Full-year adjusted EPS guidance was raised to $7.18 at the midpoint, while operating margin expanded to 11.4% from 9.9% a year ago and free cash flow swung to $2.88 billion from negative $72 million. The stock closed at $209.14, up 7.3% from the previous close.
Lockheed Martin and RTX Surge on Beat-and-Raise Quarters and Record Backlogs
Lockheed Martin surged 10% and RTX jumped 7% on Thursday after both defense contractors reported beat-and-raise second-quarter results that pushed their backlogs to all-time records. Lockheed Martin posted adjusted earnings of $7.94 per share on revenue of $20.1 billion, exceeding expectations, and booked $65 billion in new orders including a multi-year $35 billion THAAD interceptor agreement, taking its backlog to a record $230 billion. The company raised its full-year guidance for earnings, revenue, and free cash flow. RTX delivered adjusted earnings of $1.89 per share on revenue of $24.7 billion, with organic growth of 16%, and its backlog reached a record $289 billion, split between $170 billion in commercial aerospace and $119 billion in defense. RTX also lifted its full-year outlook, with CEO Chris Calio citing robust demand and a 22% year-over-year backlog increase. The rally lifted the broader aerospace and defense sector, with Boeing shares unchanged in a down market and the iShares U.S. Aerospace & Defense ETF trading higher.
Tesla, Alphabet, and American Airlines lead Thursday's biggest stock declines
Tesla, Alphabet, and American Airlines were among the biggest stock losers on Thursday as investors reacted to a wave of technology earnings and escalating geopolitical tensions. Tesla shares fell 12% after the EV maker missed Q2 earnings expectations, with EPS of $0.33, an operating margin of 1.4%, and negative free cash flow of $1.1 billion overshadowing record quarterly revenue growth of 26% year-over-year. Alphabet dropped 6% as surging AI spending and higher capital expenditure guidance outweighed a strong Q2 earnings beat, with revenue climbing 25% to $119.8 billion but adjusted EPS missing estimates and free cash flow turning negative by $5.9 billion. American Airlines declined 7% despite a Q2 earnings beat after cutting its full-year profit outlook and issuing weaker-than-expected Q3 guidance, citing an 83% surge in fuel costs that is expected to drive a quarterly loss of $0.10 to $0.70 per share. On the gaining side, Hyliion surged 14% after securing a $41.7 million U.S. Navy contract, United Rentals jumped 13% on record revenue of $4.41 billion and raised guidance, Lockheed Martin rallied 11% after beating estimates and lifting its outlook on $65 billion in new orders, RTX gained 8% on strong demand and a record backlog of $289 billion, and ServiceNow rose 5% after beating estimates and highlighting ninefold growth in AI agent deployments.
Intel earnings headline a busy Thursday of corporate results and jobs data
Investors face a packed Thursday on July 23rd, with earnings reports from Intel, RTX Corporation, and T-Mobile US Inc, alongside the latest initial jobless claims data. Intel's quarterly report is expected to show a solid quarter driven by robust server demand and improving factory output. RTX is anticipated to post another quarter of profit growth supported by commercial aerospace and defense demand. T-Mobile will be watched for continued momentum in wireless subscriber growth and broadband expansion, with commentary on the integration of US Cellular closely scrutinized. Meanwhile, economists forecast a slight uptick in new jobless claims compared to the prior week.
RTX to report Q2 earnings with revenue growth expected to slow
RTX is set to report its second-quarter earnings this Thursday before market open. The aerospace and defense company beat analysts' revenue expectations last quarter, reporting revenues of $22.08 billion, up 8.7% year on year. For the upcoming quarter, the market expects revenue growth of 6.2% year on year, a slowdown from the 9.4% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days, and RTX has a history of exceeding Wall Street expectations. The stock is up 6.6% over the last month, heading into earnings with an average analyst price target of $215.36 compared to the current share price of $193.88.
RTX completes Clean Aviation SWITCH hybrid-electric testing at The Grid
Collins Aerospace, an RTX business, has completed integrated lab testing for the European Union's Clean Aviation SWITCH project at The Grid, its advanced electric power systems lab in Rockford, Illinois. The tested hybrid-electric powertrain subsystems, which successfully operated with simulated aircraft and engine systems, are now headed to Airbus's laboratories for further aircraft-level integration testing, including work on aircraft design, battery interfacing and energy-management systems. SWITCH aims to improve engine efficiency for future short- and medium-range aircraft by integrating hybrid-electric systems on a Pratt & Whitney GTF engine, including two Collins megawatt-class motor generators and controllers. Next, The Grid will support the Airbus-led LEIA project, where Collins is technical lead for energy sources, advancing components and aircraft systems for future hybrid-electric short- and medium-range aircraft. Both SWITCH and LEIA are part of the Clean Aviation Joint Undertaking, a European public-private partnership with a budget of €4.1 billion, and build on ongoing collaboration between Collins and several partners across multiple Clean Aviation projects.
Pratt & Whitney GTF engines surpass 800 orders and commitments in 2026 year to date
Pratt & Whitney has received more than 800 GTF engine orders and commitments since the beginning of 2026, bringing the total GTF order backlog to more than 8,000 engines. Airlines and lessors that have announced orders so far this year include Abra Group, AirAsia, Azorra, Binter, British Airways, Finnair, Jackson Square Aviation, Luxair, Scoot, Tigerair Taiwan and VietJet. In total, more than 14,000 GTF engine orders and commitments have been placed by more than 90 customers worldwide. The GTF Advantage engine is expected to enter service later this year, offering up to twice the time on wing, industry-leading fuel efficiency and greater range capability.
Pratt & Whitney Canada begins ground testing hybrid-electric propulsion system for RTX flight demonstrator
Pratt & Whitney Canada has started ground testing the flight-standard propulsion system and propeller for the RTX Hybrid-Electric Flight Demonstrator in Longueuil, Quebec. Following the ground test, the hybrid-electric system will be installed on a De Havilland Canada Dash 8-100 experimental aircraft, with first flight expected in 2027. The propulsion system combines a Pratt & Whitney Canada thermal engine with a 1-megawatt electric motor and motor controller from Collins Aerospace, plus a battery system from H55 S.A. The project aims to demonstrate up to 30% improved fuel efficiency for a typical 250-nautical-mile regional turboprop mission. The initiative is supported by the governments of Canada and Quebec, with the propulsion system verification phase backed by Strix through Canada's INSAT program.
Pratt & Whitney Canada, a subsidiary of RTX, has signed a nearly five-year maintenance, repair, and overhaul agreement with Emerald Airlines at the Farnborough International Airshow. Running through 2030, the contract provides comprehensive MRO services for the PW127M engines powering Emerald Airlines' fleet of ATR 72-600 regional turboprops. MRO operations will primarily take place at Pratt & Whitney Canada’s Singapore facility, with additional support from its Montreal site. The tailored agreement aims to optimize maintenance expenses, ensure dispatch availability, and offer long-term operational certainty that satisfies the structural needs of aircraft lessors. Emerald Airlines, founded in 2021 as the exclusive operator of the Aer Lingus Regional network, relies on the PW100 engine family to deliver enhanced efficiency on regional routes under 350 miles, with engines that reduce fuel usage and CO2 emissions by 25% to 40% compared to similar-sized regional jets and are certified to operate on up to a 50% sustainable aviation fuel blend.