TLDR
- RTX shares climbed approximately 6.6% during premarket hours Monday, hitting $215.80 following weekend U.S. and Israeli military operations targeting Iran.
- Defense contractors rallied broadly, with Lockheed Martin advancing 6.9% and Northrop Grumman climbing 5.8% premarket, while defense ETF ITA posted gains.
- Brent crude oil prices jumped nearly 10% as investors moved toward safe-haven assets, lifting energy and defense sector stocks.
- The company exceeded Q4 expectations, reporting EPS of $1.55 versus the $1.47 estimate, while revenue climbed 12.1% annually to $24.24 billion.
- Management issued FY2026 EPS guidance ranging from $6.60 to $6.80, significantly exceeding the analyst consensus around $6.11.
Shares of RTX Corp surged 6.6% during Monday’s premarket session, touching $215.80, following weekend military strikes conducted by the United States and Israel against Iranian targets.
This upward movement occurred even as broader U.S. equity futures declined over 1%, with market participants preparing for potential prolonged conflict and elevated energy prices.
Israeli officials confirmed they executed a “pre-emptive” military operation against Iran on Saturday. American forces joined the attacks, with President Trump outlining objectives including regime change and the destruction of Iran’s nuclear program.
Iranian forces retaliated by launching missiles toward U.S. military installations and Israeli targets.
RTX concluded Friday’s trading session at $202.62, having gained 2.52% that day prior to the weekend’s military escalation.
Defense sector stocks stood out as rare gainers in an otherwise declining market. Lockheed Martin advanced 6.9% premarket, Northrop Grumman increased 5.8%, and the iShares U.S. Aerospace & Defense ETF (ITA) posted similar gains.
Brent crude oil prices spiked nearly 10% during overnight trading. Gold prices increased, and the U.S. dollar gained strength — classic indicators of a risk-averse market environment.
“At least in the short term, the disruption to global energy supply is substantial,” said Michael Langham, emerging markets economist at Aberdeen Investments.
Strong Fundamentals Backing the Move
Monday’s premarket surge extends momentum from a stock that had already demonstrated solid performance before the geopolitical developments.
RTX delivered Q4 EPS of $1.55, surpassing the consensus forecast of $1.47. Revenue reached $24.24 billion, reflecting 12.1% year-over-year growth and significantly exceeding the $22.65 billion analyst projection.
Management established FY2026 EPS guidance between $6.60 and $6.80, substantially higher than the analyst consensus hovering around $6.11.
RTX announced a quarterly dividend of $0.68 per share, which annualizes to $2.72 and represents a yield of approximately 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 period, Northrop Grumman has climbed 46%, while Lockheed Martin has advanced 40%.
Analyst Ratings and Institutional Activity
Analyst sentiment toward RTX remains largely positive. Morgan Stanley maintains an “overweight” rating with a $235 price objective. JPMorgan Chase elevated its target from $200 to $215, also maintaining an “overweight” rating. The overall consensus stands at “Moderate Buy” with an average price target of $199.50.
Institutional ownership accounts for approximately 86.5% of RTX shares. Bahl & Gaynor reduced its holdings by 3.5% during Q3, finishing the quarter with 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. Cumulative insider sales during the past three months totaled approximately $18.15 million.
RTX recently secured a DARPA XENA contract through BBN Technologies focused on long-range X-ray situational awareness capabilities, and finalized an optics supply agreement with the German Armed Forces via Raytheon ELCAN.
RTX posted a 12-month high of $206.73 and maintained a market capitalization of $271.68 billion as of Friday’s market close.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
