NEW YORK, Feb 1, 2026, 14:29 EST — Market closed.
- RTX shares closed Friday up 0.5%, staying close to their 52-week high.
- A short U.S. government shutdown has once again spotlighted funding mechanisms and the timing of contracts for defense suppliers.
- Investors are balancing RTX’s 2026 forecast with ongoing supply-chain challenges in commercial aerospace.
RTX shares ended Friday at $200.93, gaining 0.5% on the session, as U.S. markets remained closed over the weekend. The stock is hovering close to the top of its 52-week range.
Washington takes center stage again as the U.S. slipped into a partial government shutdown on Saturday. House Speaker Mike Johnson expressed confidence that Republicans can secure enough votes to end the shutdown by Tuesday, proposing to separate Homeland Security funding from the larger appropriations bill. This move would keep agencies like the Pentagon funded while debates over ICE reforms continue.
For RTX, the focus isn’t on Sunday’s headlines but Monday’s trading action: defense stocks typically react to budget details, while commercial aerospace moves with news on parts, shop capacity, and delivery timelines. That blend often leads to a volatile start.
Last week, RTX detailed its 2026 outlook, banking on higher sales and strong cash flow, backed by a $268 billion backlog split between commercial and defense orders. The company expects adjusted sales between $92 billion and $93 billion, with adjusted earnings of $6.60 to $6.80 per share. Free cash flow is projected at $8.25 billion to $8.75 billion after capital expenditures. CEO Chris Calio commented, “We enter 2026 with great momentum.” RTX
The guidance came in close to what analysts expected. Vertical Partners’ Rob Stallard described it as “a decent operating result … and an initial 2026 guide that is in line with consensus.” Barron’s
RTX’s quarterly update detailed two investor concerns: tariffs and capital returns. CFO Neil Mitchell told Reuters the company faced roughly $600 million in tariff costs this year. RTX also highlighted risks tied to an executive order linking buybacks, dividends, and executive pay to weapons delivery timelines. Still, management insisted it remains committed to the dividend.
Late last week, the Pentagon awarded Raytheon, based in Andover, Massachusetts, a $1.025 billion contract modification tied to year-two production of the Lower Tier Air and Missile Defense Sensor. The work is set to continue through March 31, 2030, with $254.6 million obligated at the time of the award. ([U.S. Department of War][5])
LTAMDS is a next-gen radar designed to extend coverage and tackle advanced threats. RTX says the system features three antenna arrays, enabling it to detect and engage targets from all directions.
Commercial aerospace remains a key variable. Pratt & Whitney executive Rick Deurloo noted that strong demand is prompting airlines to hold onto jets longer, increasing maintenance needs—the aftermarket segment, which usually carries better margins. He anticipates the supply-demand gap easing by the decade’s end. “I do see normalization at the end of this decade,” Deurloo said. Reuters
RTX edged higher on Friday, bucking a mixed trend among defense stocks. Lockheed Martin gained 1.9%, yet L3Harris dropped 3.7%. The S&P 500 pulled back 0.4%.
The primary risk is clear: if the shutdown stretches past early next week, even briefly, it could delay contract approvals and payment processing, rattling procurement schedules. Throw in tariff pressures, close scrutiny of shareholder payouts, and a fragile aerospace supply chain, and it’s easy to understand why some investors might hold back for clearer signals.
Upcoming catalysts are packed in quick succession. Early next week, traders will track the House’s anticipated effort to restore funding. Then, on Feb. 6 at 8:30 a.m. ET, the U.S. jobs report drops—a key data point that could shift rate expectations and impact industrial and defense stocks.
[5]: https://www.war.gov/News/Contracts/Contract/Article/4393248/contracts-for-jan-29-2026/ “
Contracts for Jan. 29, 2026 > U.S. Department of War > Contract | U.S. Department of War
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