Defense Contractors Beat Q1 Revenue Estimates, But Cautious Guidance Caps Gains

A group of 13 defense contractors reported first-quarter 2026 revenues that exceeded analysts' expectations by 3.4%, but next-quarter guidance fell 1.7% short of consensus, according to a May 29, 2026 sector wrap. Their share prices have averaged a 2.3% gain since reporting. RTX (NYSE:RTX) posted revenue of $22.08 billion, up 8.7% year-over-year and 2.7% above estimates, driven by strong organic sales across all segments. However, its full-year outlook disappointed, and the stock dropped 8.1% to $179.98. Mercury Systems (NASDAQ:MRCY) surged 38.6% after revenue of $235.8 million beat estimates by 14.2%. Lockheed Martin (NYSE:LMT) missed adjusted operating income targets, and shares fell 3.2%.