What Happened?
Shares of aerospace and defense company Raytheon (NYSE: RTX) jumped 9.5% in the morning session after the company reported strong third-quarter 2025 results that beat expectations and raised its full-year financial forecast.
The aerospace and defense company posted revenue of $22.48 billion, an 11.9% increase year-on-year, which surpassed analysts' estimates. Earnings were also better than expected, with adjusted earnings per share coming in at $1.70, up from $1.45 in the same period last year. This figure comfortably beat Wall Street's consensus estimate of $1.41 per share. Following the strong performance, RTX lifted its outlook for the full year, raising its adjusted sales guidance to a midpoint of $86.75 billion and its adjusted earnings per share guidance to a midpoint of $6.15.
Is now the time to buy RTX? Access our full analysis report here.
What Is The Market Telling Us
RTX’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 10.5% on the news that Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. Companies like Lockheed Martin, RTX, and Northrop Grumman saw gains as the market anticipated higher defense spending and new orders. This reaction contrasts with the broader market downturn, highlighting the "safe haven" appeal of defense stocks during times of global tension.
RTX is up 51.3% since the beginning of the year, and at $175.20 per share, has set a new 52-week high. Investors who bought $1,000 worth of RTX’s shares 5 years ago would now be looking at an investment worth $2,908.
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