RTX Q2 record earnings

PARAGRAPH 1 --- What happened: RTX (NYSE:RTX), a defense giant with a $261 billion market cap, reported record-breaking Q2 earnings on July 23, 2026. The company's earnings per share (EPS) surged to $1.57, up from $1.22 in the same period last year, driven by strong operational performance with $9.8 billion in operating profits and $7.3 billion in net income. Both RTX and competitor Lockheed Martin exceeded Q2 earnings and revenue estimates, pushing their shares up by 7% and 10%, respectively. Their record contract backlogs expanded, although neither reflected the resumed Iran conflict.

PARAGRAPH 2 --- Market impact: The defense sector witnessed a boost following these earnings, with RTX and Lockheed Martin shares soaring. The strong guidance and robust backlogs indicate increased demand and confidence in the sector. However, potential threats loom, including the unenacted 2027 NDAA, which could impact multiyear defense procurement.

PARAGRAPH 3 --- What to watch next: Investors should closely monitor the progress of the 2027 NDAA, as its enactment could significantly influence defense stocks. Additionally, keep an eye on RTX's upcoming Q3 earnings, scheduled for October 2026, for further insights into the company's performance and guidance. Lastly, track any developments in the Iran conflict, as they could potentially impact defense contractors' backlogs and earnings.