Defense prime contractors are ripping higher Thursday on beat-and-raise quarters that underscore resilient demand and record backlogs even as the broader market slides.

Lockheed Martin (NYSE:LMT) jumped 11.23% and RTX (NYSE:RTX) climbed 7.7% after their Q2 2026 results set all-time backlog records, diverging from a big drop in the S&P 500.

iShares U.S. Aerospace & iShares U.S. Aerospace & Defense ETF (BATS:ITA) also rose and both Lockheed and RTX stocks remain up more than 30% over the past year.

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Lockheed Martin‘s Record Orders

  • Lockheed Martin‘s Q2 results on Thursday revealed a record $230 billion backlog, driven by strong demand from the U.S. and allied nations, boosting its full-year outlook.
  • The company reported GAAP diluted earnings of $7.94 per share, surpassing the consensus estimate of $7.09, while revenue increased 11% year over year to $20.063 billion.

THAAD Contract Boosts Long-Term Prospects

  • Lockheed Martin is awarded a recent $35 billion contract to produce THAAD interceptors is expected to significantly enhance revenue and earnings over the coming years, reinforcing a new defense supercycle.
  • The deal, announced on June 25, adds a long-duration layer to Lockheed’s backlog, providing a steady stream of revenue and supporting higher market valuations.

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