NEW YORK, Jan 8, 2026, 13:10 EST — Regular session
RTX Corp (RTX.N) shares rose 1.3% to $188.09 in afternoon trading on Thursday, after earlier touching $197.00. The stock has seesawed as President Donald Trump pressed for a bigger Pentagon budget while warning defense contractors over dividends and buybacks.
Trump said on Wednesday the 2027 U.S. military budget should be $1.5 trillion, well above the $901 billion approved for 2026, sparking a fresh bid for defense names in early trade. Northrop Grumman jumped 8.3% and Lockheed Martin rose 6.4%, while RTX climbed 3.7% and General Dynamics gained 3%, the report said. RBC Capital Markets analysts led by Ken Herbert said the budget push could “offset the negative investor sentiment” from tighter limits on cash returns, but flagged uncertainty around the final spending bill; Morgan Stanley’s Kristine Liwag called the hit to payouts “incremental” and “manageable.” Reuters
That optimism sits alongside a harder line from the White House. Trump’s executive order bars major defense contractors from paying dividends — regular cash payouts — or buying back stock, where a company repurchases its own shares, until they deliver weapons “on time and on budget.” The order gives Defense Secretary Pete Hegseth 30 days to identify underperforming firms and directs the SEC to consider regulations to implement the proposed ban. Reuters
Trump also singled out RTX’s Raytheon unit in a social media post, calling it the “least responsive” to Pentagon needs. He warned the company would not be allowed “any additional Stock Buybacks” if it wants more U.S. government business and threatened to cut contracts. Reuters
Wall Street was mixed as big tech weighed on the Nasdaq, but defense shares held the spotlight. “The defense budget is growing, if anything … investors don’t seem to care,” said Joe Saluzzi, partner and co-founder at Themis Trading. Reuters
But the policy whiplash cuts both ways. If the administration turns its order into enforceable contract language, big primes could face tougher cash-return limits and a higher bar on delivery performance, and any pullback in the budget push would take air out of the trade.
RTX also pointed shareholders to a separate issue this week. The company said an unsolicited “mini-tender” offer from Tutanota LLC seeks to buy up to 500,000 shares at $130 each and urged investors not to tender, warning the bid is below market and comes with conditions; mini-tenders typically cover less than 5% of shares and avoid many SEC tender-offer rules. RTX
Next up is RTX’s own read on demand and cash plans. RTX said it will report fourth-quarter and full-year 2025 results on Jan. 27 before the market opens, with a conference call at 8:30 a.m. ET, setting up the next test for guidance and capital return plans under Washington’s new glare.
