New York, January 9, 2026, 12:44 (EST) — Regular session
- RTX shares rose about 0.8% in midday trade as defense stocks steadied after policy whiplash
- Trump order targets dividends, share buybacks and executive pay tied to weapons delivery timelines
- Investors are also looking ahead to RTX’s Jan. 27 earnings report for guidance on cash returns and spending
RTX Corp shares rose 0.8% to $188.70 in midday trading on Friday, after moving between $184.51 and $189.16 earlier in the session. The defense and aerospace group has been volatile this week as Washington signaled a tougher line on contractor performance and shareholder payouts.
The stock’s bounce came as investors digested President Donald Trump’s executive order that ties dividends, share buybacks and executive incentive pay to weapons delivery schedules, prompting contractors to seek legal advice, three sources told Reuters. The order lays out a 30-day window for the Pentagon to identify contractors that fall short, followed by 15 days for board-approved remediation plans. (Reuters)
Trump has framed the push as a way to force faster output and bigger factory investment, a rare presidential strike at buybacks — company repurchases of their own shares — and dividends, the cash paid to shareholders. In a Reuters report on the policy earlier this week, Trump vowed to block defense contractors “like RTX” from paying dividends or buying back shares until they speed up weapons production. (Reuters)
RTX also sits closer to the center of the dispute than most. Trump threatened to cut Raytheon’s government contracts unless the business restricts buybacks, writing online: “under no circumstances will they be allowed to do any additional Stock Buybacks,” according to Reuters. (Reuters)
The pressure campaign has been paired with a different message: more spending. Trump has proposed a $1.5 trillion U.S. military budget for fiscal 2027, up from the $901 billion approved for 2026, though any increase would need congressional authorization; Moody’s Ratings analyst David Rogovic warned the jump was “highly unlikely to be offset elsewhere,” adding it would widen already large deficits. (Reuters)
Still, the downside case is messy. Benchmarks for what counts as “underperformance” remain fuzzy, and any clampdown on payouts could run into legal and political friction; TD Cowen analyst Roman Schweizer said the announcement left “more questions than answers,” while flagging that Congress would likely press for clarity. (Breaking Defense)
Broader markets may also be less forgiving if rates move the wrong way. Earnings season starts in earnest next week and December’s Consumer Price Index is due on Tuesday, a data point investors have treated as a swing factor for the Fed path and equity multiples. (Reuters)
For RTX holders, the next hard catalyst is closer: the company is scheduled to report fourth-quarter and full-year 2025 results on Jan. 27 before the market opens, followed by an 8:30 a.m. EST conference call. Investors will be listening for what management says about production investment, contract performance and whether cash returns stay intact under the new Washington pressure. (Rtx)
