Defense stocks climb after both companies report stronger-than-expected revenue and earnings amid rising geopolitical tensions.
Lockheed Martin and RTX posted second-quarter earnings that exceeded Wall Street estimates, driving gains in their shares. Lockheed Martin reported an 11% revenue increase to $20.1 billion, with earnings of $7.94 per share for the quarter.
The results align with heightened defense spending expectations, as the U.S. seeks congressional approval for a $1.5 trillion defense budget. Escalating tensions with Iran and disruptions in the Strait of Hormuz have further fueled demand for defense and energy sector resilience.
Markets reacted positively, with both stocks advancing in early trading.