TLDR
- RTX shares advanced approximately 6.6% in Monday’s premarket session to $215.80 following coordinated U.S. and Israeli military operations against Iran during the weekend.
- Defense peers Lockheed Martin and Northrop Grumman climbed 6.9% and 5.8% respectively in premarket hours, while the ITA defense ETF also posted gains.
- Brent crude oil prices spiked nearly 10% as risk-off sentiment dominated markets, providing tailwinds for energy and defense sectors.
- The company exceeded Q4 expectations with earnings per share of $1.55 versus the anticipated $1.47, while revenues climbed 12.1% year-over-year to $24.24 billion.
- Management issued FY2026 EPS guidance ranging from $6.60 to $6.80, significantly exceeding the Street’s consensus forecast of approximately $6.11.
RTX Corp shares soared 6.6% during Monday’s premarket session, hitting $215.80, following military strikes conducted by the United States and Israel against Iranian targets throughout the weekend.
The rally in defense stocks occurred against a backdrop of declining U.S. equity futures, which dropped more than 1% as market participants assessed the potential for prolonged military conflict and elevated energy prices.
Israeli officials confirmed they executed what they characterized as a “pre-emptive” military operation against Iran on Saturday. American military forces joined the offensive, with President Trump articulating objectives that included regime change and the destruction of Iran’s nuclear infrastructure.
Tehran retaliated by launching missile attacks targeting U.S. military installations and Israeli positions throughout the region.
RTX concluded Friday’s trading session at $202.62, registering a 2.52% gain before the weekend’s geopolitical developments.
Defense sector equities emerged as notable outperformers in an otherwise declining market. Lockheed Martin surged 6.9% in premarket activity, Northrop Grumman advanced 5.8%, and the iShares U.S. Aerospace & Defense ETF (ITA) similarly traded in positive territory.
Brent crude oil prices momentarily spiked nearly 10% during overnight trading. Gold prices increased, and the U.S. dollar strengthened — classic indicators of risk-averse market behavior.
“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 a positive trajectory that was already underway before the geopolitical developments.
RTX reported fourth-quarter earnings per share of $1.55, surpassing the Wall Street consensus of $1.47. Quarterly revenue reached $24.24 billion, representing a 12.1% year-over-year increase and comfortably exceeding analyst projections of $22.65 billion.
Management established fiscal year 2026 EPS guidance between $6.60 and $6.80, notably above the Street’s consensus forecast hovering around $6.11.
The company also announced a quarterly dividend distribution of $0.68 per share, translating to an annualized payout of $2.72 and yielding approximately 1.3%.
Since a U.S. military strike targeting Iran’s nuclear installations 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 Trends
The majority of Wall Street analysts maintain positive outlooks on RTX. Morgan Stanley carries an “overweight” recommendation with a $235 price objective. JPMorgan Chase elevated its target from $200 to $215, maintaining an “overweight” stance. The overall Street consensus registers as “Moderate Buy” with an average price target of $199.50.
Institutional ownership accounts for approximately 86.5% of RTX’s outstanding shares. Bahl & Gaynor reduced its stake by 3.5% during Q3, finishing the quarter holding 838,365 shares worth $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. Aggregate insider selling over the previous three months totaled approximately $18.15 million.
RTX recently secured a DARPA XENA contract through its BBN Technologies subsidiary for long-range X-ray situational awareness capabilities, and finalized an optics supply agreement with the German Armed Forces through Raytheon ELCAN.
RTX recorded a 12-month high of $206.73 and commanded a market capitalization of $271.68 billion as of Friday’s market close.
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