Defense Stocks: RTX, GE & Lockheed Martin Raise Guidance

Defense stocks’ recent underperformance contrasts with resilient fundamentals, suggesting that the sector may offer an attractive entry point.

• RTX reported Q3 2026 revenue of $25.0 billion, up 11% year over year and above the $24.1 billion consensus, while adjusted EPS rose 33% to $2.26 versus the $1.78 expectation.
• RTX raised 2026 adjusted sales guidance to $97.0-$97.5 billion from $95.0-$96.0 billion and adjusted EPS guidance to $7.65-$7.75 from $7.10-$7.25; its Q3 backlog was $340 billion, including $164 billion in defense.
• GE Aerospace posted Q3 adjusted revenue of $13.3 billion, up 18% year over year, and adjusted EPS of $2.25, up 36%; Defense & Propulsion Technologies orders increased 18% to $4.3 billion.
• GE raised its full-year adjusted revenue-growth guidance to 19%-20% from the previous “high teens” and EPS guidance to $8.00-$8.10 from $7.65-$7.85, while advancing the GEK800 engine with Kratos and the XA102 adaptive-cycle engine program.
• Lockheed Martin’s Q3 sales rose 11% to $20.7 billion and EPS increased to $7.97 from $6.95; it raised 2026 sales guidance to $80-$82 billion and diluted EPS guidance to $30.35-$30.75, with a record $292.0 billion backlog.

Takeaway: Despite political uncertainty, higher oil prices, and elevated borrowing costs weighing on share prices, the three companies’ earnings beats, upgraded outlooks, and large backlogs indicate strong multi-year demand and potentially attractive long-term capital-growth opportunities.