RTX Corp. (RTX) and Lockheed Martin (LMT) stocks are on track for weekly gains and have emerged as key beneficiaries of the renewed focus on defense spending after both companies delivered strong fiscal second-quarter (Q2) 2026 results and increased their outlooks for the year.

Record Backlog And New Orders Boost RTX’s Outlook 

RTX’s Q2 revenue and earnings grew at a double-digit pace across its three major businesses: Collins Aerospace, Pratt & Whitney, and Raytheon. The company benefited from rising demand in both commercial aviation and defense markets, helping it deliver results that exceeded Wall Street expectations.

RTX generated $2.9 billion in free cash flow during Q2, helped by $3.55 billion in operating cash flow. The company’s backlog surged to a record $289 billion, up 22% year-on-year, including $170 billion in commercial orders and $119 billion in defense contracts. RTX also added $43 billion in new bookings.

The company raised its 2026 forecast, seeing revenue of $95 billion to $96 billion, compared with the prior estimate of $92.5 billion to $93.5 billion.  rose 0.3% overnight, ahead of Friday. The stock has gained 8% so far this week.

“Raytheon booked nearly $20 billion of awards, resulting in a book-to-bill in Q2 of 2.4. These bookings included over $5 billion of GEM-T Patriot effectors driven by international customers and our first domestic GEM-T production order in over 30 years. Raytheon's bookings also included over $4 billion of classified and confidential awards as well as $1.8 billion for AMRAAM,” said RTX CEO Christopher Calio during the Q2 earnings call.

Defense Demand And New Awards Drive Lockheed Martin’s Momentum 

Lockheed Martin posted a  Q2 2026 performance, with higher revenue, improved profits, and $65 billion in new orders, helping the company recover from prior-year program losses and strengthening its future growth outlook.

The company also generated $2.9 billion in free cash flow, supported by $3.2 billion in operating cash flow. This represented a strong rebound from the $150 million cash outflow reported in last year’s Q2. Lockheed Martin’s total backlog climbed to a record $230 billion, helped by major contracts such as expanded THAAD interceptor production and a $10.5 billion logistics agreement with U.S. Special Operations Command.

“These awards are less about any single program than about what they were building in aggregate. Together, they strengthen the nation's production base, adding resilience along with more manufacturing capacity, more sources of supply and greater surge capability, all at a time when these very attributes have become a strategic imperative for the country,” said Lockheed’s CEO, James Taiclet, at the Q2 earnings call.

edged 0.2% lower overnight, heading into Friday. The stock has climbed over 11% so far this week.

The U.S. defense industry is entering a period of heightened investor interest following the House passage of a proposed $1.15 trillion National Defense Authorization Act for fiscal year 2027 on Wednesday. The legislation reinforces expectations that military funding will remain a durable priority despite broader debates over federal spending.

RTX, LMT: Retail Traders View 

On Stocktwits, retail sentiment around RTX remained in ‘extremely bullish’ territory. Sentiment around LMT improved to ‘extremely bullish’ from ‘bullish’ territory the previous day.

A user said, “Lockheed $LMT – co-manufacturer of F22 Raptor - Stock Soars. Defense Is a Bipartisan Issue.”

Another user said, “It hasn't been a great year since February for this sector, but now there is new funding coming in and other factors -- this sector is going to see some love.”

So far this year, RTX and LMT stocks have gained 14% and 17%, respectively.