Shares of aerospace and defense giant Raytheon climbed 7.3% on Thursday after the company delivered a second-quarter earnings report that exceeded analyst expectations across multiple metrics.
RTX posted adjusted earnings per share of $1.89 on revenue of $24.71 billion, representing a year-over-year revenue increase of 14.5% from the prior period.
The strong top and bottom-line results gave management confidence to raise its full-year sales outlook to $95.5 billion at the midpoint, up from a prior forecast of $93 billion.
Management also lifted its full-year adjusted EPS guidance to $7.18 at the midpoint, signaling continued confidence in the company’s operational momentum heading into the second half of 2026.
Profitability metrics were equally impressive, with operating margin expanding to 11.4% compared to 9.9% during the same quarter last year.
Free cash flow emerged as another bright spot in the report, coming in at $2.88 billion versus negative $72 million in the year-ago period, a dramatic turnaround that impressed investors.
The combination of strong financial results, increased guidance, and improved margins fueled investor optimism and drove shares to close at $209.14 for the session.
RTX shares are not particularly volatile, having registered only one move greater than 5% over the past year, making Thursday’s jump a statistically significant market reaction.
The last major move came 21 days ago, when the stock gained 3.4% after Raytheon was awarded a $1.1 billion contract from the U.S. Navy to produce AIM-9X Block II missiles for both U.S. military and foreign allies.
Under that contract, Raytheon committed to increasing its annual production capacity to 2,500 missiles to meet growing demand from domestic and international customers.
That contract win reinforced a bullish consensus already held by Wall Street analysts, who have maintained a positive outlook on the defense contractor throughout the year.
RTX is up 11.6% since the start of the year and is currently trading near its 52-week high of $212.16, which was reached in March 2026.
Investors who purchased $1,000 worth of RTX shares five years ago would now be holding a position worth approximately $2,434, reflecting the company’s sustained long-term growth trajectory.
