TLDR
- RTX shares advanced approximately 6.6% during premarket hours Monday, touching $215.80 following military strikes on Iranian targets by U.S. and Israeli forces.
- Defense peers Lockheed Martin and Northrop Grumman climbed 6.9% and 5.8% respectively in premarket, while the ITA defense ETF posted gains.
- Brent crude oil prices jumped nearly 10% as investors adopted risk-off positioning, providing tailwinds to energy and defense sectors.
- The company exceeded Q4 expectations with earnings per share of $1.55 compared to analyst estimates of $1.47, while revenue climbed 12.1% annually to $24.24 billion.
- Management issued FY2026 EPS outlook of $6.60–$6.80, significantly exceeding Wall Street’s consensus forecast of approximately $6.11.
Shares of RTX Corp experienced a sharp 6.6% premarket rally Monday morning, climbing to $215.80 following military operations launched by the United States and Israel against Iranian facilities during the weekend.
The surge in defense stocks contrasted sharply with broader market sentiment, as U.S. equity futures declined more than 1% amid concerns about prolonged regional conflict and its potential economic impact.
Israeli officials characterized Saturday’s military action as a “pre-emptive” operation targeting Iran. American military forces joined the campaign, with President Trump articulating objectives focused on regime transformation and neutralizing Iran’s nuclear program capabilities.
Retaliatory missile launches from Iran targeted both U.S. military installations and Israeli positions in the region.
Prior to the weekend developments, RTX concluded Friday’s trading session at $202.62, representing a 2.52% daily gain.
Defense industry stocks emerged as notable outperformers amid widespread market weakness. Lockheed Martin advanced 6.9% in premarket activity, Northrop Grumman gained 5.8%, and the iShares U.S. Aerospace & Defense ETF (ITA) similarly moved higher.
Brent crude oil prices spiked nearly 10% during overnight trading. Precious metals and the U.S. dollar also strengthened — classic indicators of flight-to-safety positioning among market participants.
“At least in the short term, the disruption to global energy supply is substantial,” said Michael Langham, emerging markets economist at Aberdeen Investments.
Solid Business Performance Underpins Rally
Monday’s premarket surge extends momentum from a stock that had already demonstrated strength prior to the geopolitical developments.
RTX delivered fourth-quarter earnings per share of $1.55, surpassing Wall Street’s $1.47 consensus forecast. Quarterly revenue reached $24.24 billion, representing 12.1% year-over-year growth and comfortably exceeding analyst projections of $22.65 billion.
Management established fiscal 2026 EPS guidance in the range of $6.60–$6.80, substantially above the Street’s consensus expectation of roughly $6.11.
The company announced a quarterly dividend payment of $0.68 per share, translating to an annualized rate of $2.72 and representing approximately 1.3% yield.
Since U.S. military operations targeting Iran’s nuclear infrastructure in June 2025, the ITA defense ETF has appreciated 35%. During this period, Northrop Grumman shares have climbed 46%, while Lockheed Martin has gained 40%.
Wall Street Coverage and Ownership Patterns
Analyst sentiment toward RTX remains predominantly positive. Morgan Stanley maintains an “overweight” recommendation with a $235 price objective. JPMorgan Chase recently elevated its 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 RTX’s outstanding 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. Aggregate insider selling over the past 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 via Raytheon ELCAN.
As of Friday’s market close, RTX carried a 12-month high of $206.73 and commanded a market capitalization of $271.68 billion.
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