Key Takeaways
- RTX shares climbed approximately 6.6% to $215.80 during premarket trading Monday following weekend military strikes on Iran by U.S. and Israeli forces.
- Defense contractors Lockheed Martin and Northrop Grumman saw gains of 6.9% and 5.8% respectively in early trading, with the ITA defense ETF also advancing.
- Brent crude oil prices jumped nearly 10% as investors adopted a risk-averse posture, benefiting energy and defense equities.
- The aerospace company exceeded Q4 expectations with earnings per share of $1.55 compared to the $1.47 forecast, while revenue climbed 12.1% annually to $24.24 billion.
- Management issued FY2026 EPS projections of $6.60–$6.80, significantly exceeding the Street’s estimate of approximately $6.11.
Shares of RTX Corp experienced a substantial premarket surge of 6.6% Monday morning, climbing to $215.80, following coordinated military operations by the United States and Israel targeting Iran during the weekend.
The rally in defense stocks contrasted sharply with broader market sentiment, as U.S. equity futures declined over 1% amid concerns about prolonged regional conflict and potential energy price spikes.
Israeli officials confirmed they executed what they characterized as a “pre-emptive” military operation against Iranian targets on Saturday. American military assets joined the campaign, with President Trump articulating objectives including regime transformation and the destruction of Iran’s nuclear infrastructure.
Tehran retaliated by launching missile strikes targeting U.S. military installations and Israeli strategic positions.
Prior to the weekend developments, RTX concluded Friday’s trading session at $202.62, marking a 2.52% daily gain.
Defense contractors emerged as standout performers in an otherwise negative market environment. Lockheed Martin advanced 6.9% during premarket hours, Northrop Grumman increased 5.8%, and the iShares U.S. Aerospace & Defense ETF (ITA) posted similar gains.
Brent crude oil experienced a dramatic spike of nearly 10% during overnight trading. Precious metals like gold appreciated while the U.S. dollar gained strength — classic indicators of flight-to-safety sentiment.
“At least in the short term, the disruption to global energy supply is substantial,” said Michael Langham, emerging markets economist at Aberdeen Investments.
Solid Financial Performance Underpins Rally
Monday’s premarket surge extends an already impressive performance trajectory for the stock ahead of geopolitical developments.
RTX delivered fourth-quarter earnings per share of $1.55, surpassing Wall Street’s consensus projection of $1.47. The company generated $24.24 billion in quarterly revenue, representing a 12.1% year-over-year increase and comfortably exceeding analyst expectations of $22.65 billion.
Management established fiscal year 2026 earnings guidance ranging from $6.60 to $6.80 per share, substantially above the analyst consensus figure of approximately $6.11.
The corporation announced a quarterly dividend payment of $0.68 per share, translating to an annualized distribution of $2.72 and representing a yield of roughly 1.3%.
Following a U.S. military strike on Iran’s nuclear infrastructure in June 2025, the ITA defense ETF has appreciated 35%. During the same timeframe, Northrop Grumman shares have climbed 46%, while Lockheed Martin has advanced 40%.
Wall Street Sentiment and Ownership Patterns
Analyst coverage remains predominantly positive on RTX. Morgan Stanley maintains an “overweight” recommendation with a $235 price objective. JPMorgan Chase elevated its price target from $200 to $215, maintaining an “overweight” stance. The consensus rating stands at “Moderate Buy” with an average price target of $199.50.
Institutional ownership accounts for approximately 86.5% of outstanding RTX shares. Bahl & Gaynor reduced its holdings by 3.5% during Q3, concluding the quarter with 838,365 shares valued at $140.28 million.
Regarding insider transactions, EVP Dantaya M. Williams divested 12,713 shares on February 23rd at $202.83 per share. EVP Neil G. Mitchill Jr. sold 35,755 shares on February 19th at $205.56 each. Cumulative insider dispositions over the preceding three months totaled approximately $18.15 million.
RTX recently secured a DARPA XENA contract through its BBN Technologies subsidiary for extended-range X-ray situational awareness capabilities, and finalized an optics procurement agreement with the German Armed Forces through Raytheon ELCAN.
As of Friday’s market close, RTX had established a 12-month peak of $206.73 and maintained a market capitalization of $271.68 billion.
