RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

RTX Corporation

Key Points
The pandemic hit the aircraft and parts supply chain hard.
Meanwhile, demand for air travel continues to climb.
The supply-demand mismatch should push this ETF higher.
The aviation industry has all the customers it needs right now. Unfortunately, it doesn't have the planes and parts it needs to serve them.
Commercial travel demand has rebounded strongly from the precipitous drop-off it experienced during the global pandemic. Demand for air travel grew a healthy 10.4% last year. And it's projected to continue growing at an annual rate of 4.2% through 2030.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Unfortunately, there's a severe shortage of new aircraft available to meet that rising demand. Due to a hangover from the pandemic, which caused major supply chain disruptions for engine and aircraft manufacturers, as well as shortages of both skilled labor and raw materials like semiconductors, there's currently a global backlog of more than 17,000 aircraft.
That will be rough on airlines, as they will struggle to find enough new aircraft to meet demand and will also face higher maintenance and leasing costs. The International Air Transport Association -- the global trade association for airlines -- expects supply chain problems to cost airlines more than $11 billion this year.
Aircraft suppliers look to benefit
But the supply demand mismatch is expected to be a huge boon to aircraft leasing companies, maintenance and repair companies, and plane, engine, and parts manufacturers. How can investors benefit from this situation?
The iShares US Aerospace & Defense ETF (NYSEMKT: ITA) is the largest U.S.-listed exchange-traded fund focused on the aerospace and defense sector. It's up 48% in 2025 (more than three times the gain of the S&P 500 index this year), and it looks to head higher as aviation industry problems persist -- perhaps for years.
The ITA ETF tracks the Dow Jones U.S. Select Aerospace & Defense Index, which means it doesn't try to pick individual stocks but instead attempts to mirror the holdings and performance of that index. Its largest holdings are:
There are 33 other stocks in the ETF beyond those six (for a total of 39 holdings), which makes it significantly diversified within that sector. The fund has assets under management of about $12.2 billion, and its annual expense ratio, which shareholders pay, is a low 0.38%, which is about average for industry-specific ETFs.
The ETF is also highly liquid. As of August 2024, it traded with a 0.05% 30-day median bid-ask spread, which means there's a tiny gap between the buying and selling price. It also sees an average of some 664,000 shares traded over a 30-day period, which means it's easy for investors to get in or out without impacting the price.
An ongoing shortage of planes
Aircraft industry executives say they expect the shortage of planes to last several more years, as the global supply chain is difficult to repair and is not yet close to recovering to its pre-pandemic levels of output.
That's a big part of the reason that aerospace stocks are having a banner year in 2025. GE is up 84% year to date; Boeing is up 23%; RTX has climbed 55%; Howmet Aerospace (NYSE: HWM), another holding in the ITA ETF, is up 83%; and Huntington Ingalls Industries (NYSE: HII), yet another holding, has soared 54%.
A major supply disruption is not good for airlines or flyers, but it could be good for investors.
Should you invest $1,000 in GE Aerospace right now?
Before you buy stock in GE Aerospace, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GE Aerospace wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,287!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,173,807!*
Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies. The Motley Fool recommends GE Aerospace, Howmet Aerospace, Lockheed Martin, and RTX. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Aviation Industry Has a Major Supply Chain Problem. Here's How Investors Can Still Win.

Key Points
An improving aerospace supply chain is driving improvement in the aftermarket.
RTX's Raytheon is benefiting from strong international demand for defense products.
Shares in commercial aerospace and defense giant RTX (NYSE: RTX) rose by 14.1% in the week to Friday morning. The move comes after an excellent set of third-quarter earnings and a hike in full-year guidance, leaving investors optimistic about 2026.
Here's why the market got so excited.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
RTX is firing on all cylinders
It's rare for such a large company to deliver strong performance across all its segments, but that's exactly what's happening with RTX right now. Not only did management raise its headline guidance, but it also raised earnings guidance across all three of its segments.
In common with its aircraft engine peer, GE Aerospace, RTX's Pratt & Whitney is seeing strong aftermarket demand in commercial aerospace, as flight departures remain in solid growth mode, and increased parts availability is encouraging airlines to service engines. In a sign of confidence, management raised its full-year organic sales expectations to "low-to-mid-teens" growth from "low double digits." Profits are now expected to increase by $350 million to $400 million compared to $200 million to $275 million previously.
Collins Aerospace is also seeing strong demand in the aftermarket and continues to benefit from the production ramp at Airbus and, notably, at Boeing. Here again, management raised profit expectations to profit growth of $325 million to $375 million compared to $275 million to $350 million previously on the back of relatively higher margin commercial aftermarket revenue.
Finally, management raised its expectations for profit growth in the defense business, Raytheon, from $225 million to $300 million, toward a new range of $400 million to $450 million, reflecting a "favorable international program mix," according to VP of investor relations Nathan Ware.
Where next for RTX?
The update is excellent and speaks to the ongoing improvements in the commercial aerospace industry and a favorable environment for defense spending. While those trends persist, RTX will be an attractive option for investors.
Should you invest $1,000 in RTX right now?
Before you buy stock in RTX, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RTX wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends GE Aerospace and RTX. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why RTX Rocketed Higher This Week

Thursday, October 23, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Amazon.com, Inc. (AMZN), Wells Fargo & Co. (WFC) and Amgen Inc. (AMGN), as well as two micro-cap stocks IDT Corp. (IDT) and Village Super Market, Inc. (VLGEA). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Mostly Lower on Biggest Earnings Day of the Week
Today's Featured Research Reports
Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+18.1% vs. +17.6%). The company’s top-line is driven by steady momentum in Prime and AWS. Strengthening AWS services portfolio and its growing adoption rate is contributing well to AWS performance. Ultrafast delivery services and expanding content portfolio are beneficial.
Strengthening relationships with third-party sellers is a positive. Robust advertising business is also contributing well. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on GenAI is a major plus.
The Zacks analyst expect 2025 net sales to grow 10.6% from 2024. However, weak third-quarter operating income guidance of $15.5-20.5 billion and concerns about margin pressure from heavy AI investments totaling $100+ billion in capital expenditure plans are overhangs. Elevated operating expenses amid intensifying cloud competition remain headwinds.
(You can read the full research report on Amazon.com here >>>)
Shares of Wells Fargo have gained +33.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +36.2%. The company’s third-quarter 2025 results benefited from an improvement in net interest income (NII), fee income and lower provisions. Its earnings surpassed the estimates in each of the trailing four quarters.
The Fed's June 2025 removal of the $1.95 trillion asset cap allows growth in deposits, loans and fee-based services. After clearing the 2025 Fed stress test, Wells Fargo raised its dividend, backed by strong liquidity and capital position. Also, strategic investments in talent and technology support long-term growth.
Yet despite the recent Fed rate cut, NII recovery may remain slow, pressuring near-term revenue growth. The mortgage banking income remains weak amid ongoing mortgage rate volatility. Also, rising technology and compensation costs may weigh on profitability.
(You can read the full research report on Wells Fargo here >>>)
Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+15.4% vs. +11.1%). The company’s key medicines like Evenity, Repatha and Blincyto and newer medicines like Tavneos and Tezspire, are driving sales, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel.
New biosimilar launches are also contributing to growth. Amgen has some key pipeline assets with a focus on the obesity candidate, MariTide. Data from studies on MariTide are expected in the fourth quarter. However, increased pricing headwinds and competitive pressure are hurting sales of many products.
Weakness in some key brands like Otezla and Lumakras creates potential revenue strains. Sales of best-selling drugs Prolia and Xgeva are expected to decline from the second half of 2025 due to biosimilar competition. Estimates have declined ahead of Q3 results. Amgen has a positive record of earnings surprises in recent quarters.
(You can read the full research report on Amgen here >>>)
Shares of IDT have gained +6.5% over the past year against the Zacks Diversified Communication Services industry’s gain of +10.2%. This microcap company with a market capitalization of $1.25 billion has scalable, high-margin platforms — NRS, BOSS Money and net2phone — which drive sustained EBITDA and cash flow growth. NRS recurring revenues rose 27% with expanding margins and POS growth, positioning for deeper monetization via digital coupons.
BOSS Money’s digital pivot lifted EBITDA, aided by margin expansion and WhatsApp integration. net2phone’s AI rollout supports 54% EBITDA growth and rising ARPU. Core communications remain a cash engine funding growth. Strong liquidity ($253.8 million, no debt) and a 43% EBITDA increase underpin flexible capital returns.
Risks include working-capital drag, customer concentration, pricing elasticity and rising CapEx intensity. The valuation suggests investors can access strong earnings growth and cash generation at a discounted entry point, offering significant multiple expansion potential.
(You can read the full research report on IDT here >>>)
Village Super Market’s shares have gained +15.4% over the past year against the Zacks Retail - Supermarkets industry’s gain of +30.1%. This microcap company with market capitalization of $488.08 million delivered strong FY25 results, with 12% net income growth to $56.4 million, driven by 2.1% same-store sales gains, digital adoption, and pharmacy strength.
Operating margin held firm at 23.95% due to labor and occupancy efficiencies. Strategic store replacements — like the larger-format Watchung and Old Bridge locations — boosted productivity and fulfillment. FY26 includes another replacement store in East Orange. A healthy balance sheet with $110.7 million in cash and reduced debt offers financial flexibility. Dividends remain consistent and sustainable, with a low payout ratio (<25%).
Village’s mix of urban and suburban formats enables targeted customer engagement. Risks include legal disputes with Wakefern, internal cannibalization, labor contract expirations, cybersecurity dependence, and margin pressures from inflation. Shares trade at 0.18x EV/sales vs. 1.22x for peers.
(You can read the full research report on Village Super Market here >>>)
Other noteworthy reports we are featuring today include RTX Corp. (RTX), Marsh & McLennan Companies, Inc. (MMC) and América Móvil, S.A.B. de C.V. (AMX).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Defense Orders Drive RTX Corporation (RTX), Despite Supply Chain Woes
Per the Zacks analyst, RTX is likely to benefit from increasing defense order growth from the Pentagon and US allies. Yet supply chain issues result in delays and increase costs.
Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Per the Zacks analyst, multiple acquisitions help Marsh & McLennan expand geographically and diversify its portfolio. However, escalating expenses remain a concern.
Smucker (SJM) to Continue Gaining from Coffee Business Strength
Per the Zacks analyst, Smucker is likely to gain from strength in its coffee business, thanks to Folgers and Cafe Bustelo brands. In first quarter, coffee unit sales grew 15% driven by solid pricing.
AI Tax Assist Benefits H&R Block (HRB) Amid Low Liquidity
Per the Zacks Analyst, integration of a generative AI-powered technology, AI Tax Assist, in H&R Block's DIY tax preparation boosts top line. Low liquidity is concerning.
Spec Home Strategy Benefits Meritage Homes (MTH) Amid Macro Risks
Per the Zacks analyst, Meritage Homes is gaining from its speculative homebuilding strategy and land investments. However, housing market weakness and high costs are a hindrance.
R&D Focus & MedTech Strength Aid Integer Holdings (ITGR), Amid Risks
Per the Zacks analyst, Integer Holdings' strong R&D focus and solid presence in the MedTech space drive optimism. However, heavy regulation, competition, and supplier dependence remain concerns.
Global Reach & Inverter Shipments Aid SolarEdge Technologies (SEDG)
Per the Zacks analyst, SolarEdge Technologies benefits from its expanding production facilities and increased global footprint. Consistent inverter shipments will boost its performance.
New Upgrades
America Movil (AMX) Gains from Rising Subscriber Engagement
Per the Zacks analyst, America Movil's performance is benefiting from an uptick in broadband client base and wireless subscribers. An augmented 5G footprint is a tailwind.
Strong Adoption of Automated Solutions Aids Teradyne's (TER) Prospects
Per the Zacks analyst, Teradyne benefits from strong adoption of automated solutions that is automating semiconductor customers' back-end processes.
Alkermes (ALKS) Rides on Robust Sales Performance of Proprietary Drugs
Per the Zacks analyst, Alkermes' top line is being driven by the sales of its proprietary drugs, Vivitrol, Aristada and Lybalvi. The company is also making good progress with its pipeline development.
New Downgrades
Liberty Energy (LBRT) Hurt by Slowdown in Industry's Frac Activity
The Zacks analyst highlights challenges for Liberty Energy's earnings growth due to slowdown in industry's frac activity including market pricing pressures.
North American Slowdown to Pressure Halliburton (HAL)
The Zacks analyst believes that reduced spending and a cautious stance by North American operators could pressure Halliburton's onshore activity and pricing.
Subdued Truck Market & Tariffs Woes to Dent PACCAR's (PCAR) Margins
Weak truck deliveries, tariff costs, and input inflation are likely to pressure PACCAR's near-term margins amid a sluggish freight recovery, making the Zacks analyst bearish on the stock.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Amazon.com, Wells Fargo & Amgen

The uptrend in the Aerospace & Defense industry is evident from the performance of the S&P Aerospace & Defense Select Industry Index, which has added 43.23% year to date, surpassing the S&P 500's 13.90% gain in the same period.
According to Reuters, ongoing conflicts in the Middle East and the prolonged Russia-Ukraine war have spurred greater demand for missiles and fighter jets, lifting defense contractor sales. However, persistent supply chain disruptions, intensified by the Trump administration’s trade policies, have impeded production efficiency and delayed backlog execution across the industry.
Earnings in Focus
Below, we highlight the third-quarter results of a few renowned U.S. Aerospace – Defense industry players.
Northrop Grumman
Northrop Grumman NOC reported third-quarter 2025 earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. NOC’s total sales of $10.42 billion missed the Zacks Consensus Estimate of $10.72 billion by 2.8%.
However, the top line rose 4.3% from $10 billion reported in the year-ago quarter, driven by higher sales from its Aeronautics Systems, Defense Systems and Mission Systems segments.
Per the abovementioned Reuters article, Northrop Grumman is also anticipated to participate in bids for the U.S. administration’s $175 billion Golden Dome missile defense system, potentially supporting long-term revenue expansion.
NOC’s year-over-year improvement can be attributed to strong segment operating performance. The company’s operating income during the quarter totaled $1.24 billion, reflecting a significant rise from $1.12 billion in the prior-year quarter.
NOC’s total backlog was $91.45 billion at the end of the third quarter compared with $89.74 billion at the end of second-quarter 2025.
NOC now expects its revenues in the range of $41.70-$41.90 billion, lower than the previous guidance in the band of $42.05-$42.25 billion. The Zacks Consensus Estimate for sales is pegged at $42.17 billion, above the company’s newly guided range.
RTX Corporation
RTX Corporation RTX reported third-quarter 2025 adjusted EPS of $1.70, beating the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded in the third quarter of 2024. RTX’s total costs and expenses increased nearly 10% year over year to $20.02 billion in the quarter. For first-quarter 2025, RTX reported a backlog of $217 billion.
During its postearnings conference call RTX management noted that the company aims to capture a share of the billions in U.S. defense spending allocated for the Golden Dome missile defense system, alongside continued demand for munitions replenishment, as quoted in a Reuters article.
RTX now expects adjusted EPS to be in the band of $6.10-$6.20, up from the previous projection of $5.80-$5.95. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.94
Lockheed Martin
Lockheed Martin LMT reported third-quarter 2025 adjusted earnings of $6.95 per share, which beat the Zacks Consensus Estimate of $6.33 by 9.8%. The bottom line increased 2.2% from the year-ago quarter's reported figure of $6.80. The year-over-year improvement in earnings was primarily driven by higher revenues and operating profit.
Alongside Northrop Grumman and RTX, Lockheed Martin is also competing for a share of the Trump administration’s proposed $175 billion Golden Dome missile defense program, according to Reuters.
Net sales came in at $18.61 billion, which beat the Zacks Consensus Estimate of $18.56 billion by 0.3%. The top line also increased 8.8% from $17.10 billion reported in the year-ago quarter. The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
LMT’s backlog, as of Sept. 28, 2025, was $179.07 billion compared with $176.04 billion as of Dec. 31, 2024. Lockheed now expects to generate sales in the range of $74.25-$74.75 billion in 2025, narrower than its earlier estimate of $73.75-$74.75 billion, with the Zacks Consensus Estimate pegged at $74.20 billion.
ETFs to Consider
The aerospace and defense industry maintains an optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist.
For investors looking to bet on Q3 results as well as the continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.
Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD and U.S. Global Technology and Aerospace & Defense ETF WAR.
Regarding charging annual fees, XAR is the cheapest option, charging 0.35%, and is more suitable for long-term investing.
With a one-month average trading volume of about 1.38 million shares, SHLD is the most liquid option, offering investors easier entry and exit, ideal for active trading strategies.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Aerospace & Defense ETFs in Focus This Earnings Season

Honeywell International Inc. HON reported third-quarter 2025 adjusted earnings of $2.82 per share, which surpassed the Zacks Consensus Estimate of $2.56. The bottom line increased 9% year over year on an adjusted basis. On a reported basis, the company’s earnings were $2.86 per share, up 32% year over year.
Total revenues of $10.41 billion beat the consensus estimate of $10.16 billion. The top line increased 7% from the year-ago quarter, driven by strength in Aerospace Technologies and Building Automation segments. Organic sales increased 6% year over year.
Honeywell Q3 Performance by Business Segment
Beginning in the second quarter of 2024, the company started operating under the segments discussed below.
Aerospace Technologies’ quarterly revenues were $4.51 billion, up 15% year over year. Organic sales increased 12% year over year. Strength in both commercial aftermarket and defense and space markets, driven by increased flight activity, augmented the top line. Sales from the commercial aftermarket surged 19% driven by persistent strength across business jet and air transport markets along with supply-chain improvements. Sales from the defense and space business increased 10% on robust global demand.
Industrial Automation revenues declined 9% year over year to $2.27 billion. Organic sales grew 1% year over year. The sales decline was primarily attributable to divestiture of personal protective equipment business. Organic sales growth was driven by strength in sensing and warehouse & workflow solutions businesses, which was partially offset by weakness in productivity solutions and services business. Our estimate for segmental revenues was pegged at $2.32 billion.
Building Automation revenues totaled $1.88 billion, up 8% year over year. Organic sales increased 7% year over year. The upside was driven by ongoing strength in both the building solutions and building products businesses. While sales from the building solutions business grew 7%, the same from building products business increased 6%. Our estimate for the segment’s revenues was also $1.88 billion.
Energy and Sustainability Solutions’ revenues increased 11% to $1.74 billion. Organic sales fell 2% year over year. The results were driven by strength in advanced materials business, supported by solid demand for refrigerants. However, weakness in the UOP business due to licensing delays and reduced catalyst shipment volumes offset the gains. Our estimate for the segment’s revenues was $1.57 billion.
Honeywell International Inc. Price, Consensus and EPS Surprise
Costs & Margins of HON
The company’s total cost of sales (cost of products and services) was about $6.86 billion, up 14.7% year over year. Selling, general and administrative expenses were $1.30 billion, down 7.3%. Interest expenses and other financial charges were $354 million, reflecting an increase of 19.2% year over year.
Operating income was $1.75 billion, down 6% year over year. The operating income margin was 16.9% compared with 19.1% in the year-ago period.
HON’s Balance Sheet & Cash Flow
Exiting third-quarter 2025, Honeywell had cash and cash equivalents of $12.9 billion compared with $10.6 billion at the end of December 2024. Long-term debt was $30.1 billion, higher than $25.5 billion at 2024-end.
In the third quarter, it generated net cash of $3.3 billion from operating activities compared with $2 billion in the prior-year quarter. Capital expenditure totaled $374 million compared with $279 million in the previous year quarter.
Free cash flow in the quarter was $1.45 billion, down 16% from the year-ago quarter’s level.
Honeywell’s 2025 Guidance
For 2025, Honeywell expects sales to be in the range of $40.7-$40.9 billion, lower than $40.8-$41.3 billion projected previously. Organic sales are now expected to increase approximately 6% compared with its earlier projection of 4-5%.
HON expects a segment margin of 22.9-23.0% compared with 23.0-23.2% guided previously. The metric indicates an increase of 30-40 basis points year over year. Adjusted earnings per share (EPS) are expected to be between $10.60 and $10.70, higher than $10.45-$10.65 guided earlier. The metric indicates an increase of 7-8% on a year-over-year basis.
It currently expects operating cash flow in the range of $6.4-$6.8 billion. Free cash flow is expected to be in the band of $5.2-$5.6 billion.
HON’s Zacks Rank & Key Picks
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the same space are discussed below:
RTX Corporation RTX presently carries a Zacks Rank #2 (Buy). RTX’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 12.2%. In the past 60 days, the Zacks Consensus Estimate for RTX Corp.’ 2025 earnings has increased 1.3%.
Textron Inc. TXT currently carries a Zacks Rank of 2. TXT’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 4.8%. In the past 60 days, the Zacks Consensus Estimate for Textron’s 2025 earnings has increased 0.3%.
ITT Inc. ITT currently carries a Zacks Rank of 2. ITT has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.5%. In the past 60 days, the Zacks Consensus Estimate for ITT’s 2025 earnings has inched up 0.2%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honeywell's Q3 Earnings Top Estimates on Strong Aerospace Momentum

Textron Inc. TXT reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.
The company reported GAAP earnings of $1.31 per share compared with $1.18 a year ago.
TXT’s Revenues
The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.
Textron Inc. Price, Consensus and EPS Surprise
Segmental Performance of Textron
Textron Aviation: Revenues from this segment increased 10% year over year to $1.5 billion. This was primarily driven by higher volume and mix, which included higher Citation jet and commercial turboprop volume, partially offset by lower defense volume.
The segment delivered 42 jets, up from 41 in the year-ago quarter. It also delivered 39 commercial turboprops, up from 25 in the third quarter of 2024.
Order backlog at the end of the quarter totaled $7.7 billion.
Bell: Revenues from this segment amounted to $1 billion, up 10% from the year-ago quarter’s registered number. This was driven by higher military revenues of $128 million, primarily due to higher volume from the U.S. Army's MV-75 program, partially offset by lower commercial revenues of $31 million, primarily due to volume.
Bell delivered 30 commercial helicopters, flat year over year.
Its order backlog at the end of the quarter totaled $8.2 billion.
Textron Systems: This segment’s revenues amounted to $307 million, up $6 million from the prior-year level.
Textron Systems’ backlog at the end of the quarter totaled $3.2 billion.
Industrial: Revenues from this segment declined $79 million to $761 million due to lower revenues related to the divestiture of the Powersports business.
Textron eAviation: Revenues from the segment totaled $5 million, lower than the prior-year period’s revenues of $6 million.
Finance: This segment’s revenues amounted to $26 million compared with $12 million in the year-ago quarter.
Textron’s Financials
As of Sept. 27, 2025, cash and cash equivalents totaled $1.45 billion compared with $1.39 billion as of Dec. 28, 2024.
Cash generated from operating activities in the first nine months of 2025 amounted to $629 million compared with $561 million in the year-ago period.
Capital expenditures amounted to $210 million (as of Sept. 27) compared with $211 million in the prior-year period.
The long-term debt totaled $3.04 billion as of Sept. 27, 2025, compared with $2.89 billion as of Dec. 28, 2024.
TXT’s Guidance
Textron expects adjusted earnings to be in the range of $6.00-$6.20 per share. The Zacks Consensus Estimate for earnings is pegged at $6.15 per share, which lies above the mid-point of its guided range.
TXT’s Zacks Rank
Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release
RTX Corporation’s RTX third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.
Upcoming Defense Releases
General Dynamics GD is slated to report third-quarter results on Oct. 24, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.73 per share, which indicates a year-over-year increase of 11.3%.
GD’s long-term (three to five years) earnings growth rate is 10.67%. The Zacks Consensus Estimate for sales is pegged at $12.61 billion, which indicates a year-over-year increase of 8.1%.
The Boeing Company BA is slated to report third-quarter results on Oct. 29, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.83 per share.
BA’s long-term earnings growth rate is 20.85%. The Zacks Consensus Estimate for third-quarter sales is pinned at $21.64 billion, indicating year-over-year growth of 21.3%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Textron Q3 Earnings Beat Estimates, Revenues Improve Y/Y

Teledyne Technologies Inc. TDY reported third-quarter 2025 adjusted earnings of $5.57 per share, which surpassed the Zacks Consensus Estimate of $5.50 by 1.3%. The bottom line also improved 7.8% from $5.10 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.65 per share, up 16.1% from the prior-year period’s earnings of $5.54 per share.
The year-over-year decline in the bottom line can be attributed to higher cost of sales, selling, general and administrative expenses, as well as, research and development expenses in the third quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.54 billion, which beat the Zacks Consensus Estimate of $1.52 billion by 1%. The top line also surged 6.7% from $1.44 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in the majority of its business segments.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote
TDY’s Segmental Performance
Instrumentation: Sales in this segment increased 3.9% year over year to $363.6 million, driven by higher sales of environmental instrumentation, marine instrumentation and electronic test and measurement instrumentation.
The adjusted operating income rose 2.3% year over year to $102.1 million.
Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $785.4 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems and industrial automation imaging systems.
The adjusted operating income declined 2% year over year to $170.2 million.
Aerospace and Defense Electronics: Sales in this segment totaled $275.5 million, up 37.6% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 36.8% year over year to $77.3 million.
Engineered Systems: Revenues in this division fell 8.1% year over year to $115 million due to lower sales of engineered products and energy systems.
This segment's operating income decreased 5.4% to $12.2 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $528.6 million as of Sept. 28, 2025, compared with $649.8 million as of Dec. 29, 2024.
Its long-term debt was $2.08 billion at the end of the third quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.
Cash flow from operating activities totaled $343.1 million for the third quarter compared with $249.8 million in the prior-year period.
TDY generated free cash flow of $313.9 million, up from $228.7 million in the prior-year quarter.
TDY’s Guidance
Teledyne expects to generate adjusted earnings in the band of $5.73-$5.88 per share for the fourth quarter of 2025. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.90 per share, higher than the company's guided range.
For 2025, Teledyne expects its adjusted earnings to be in the range of $21.45-$21.60 per share. The Zacks Consensus Estimate for earnings is pegged at $21.48 per share, which lies below the midpoint of the company’s guided range.
TDY’s Zacks Rank
Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s RTX third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.
Lockheed Martin Corporation LMT reported third-quarter 2025 adjusted earnings of $6.95 per share, which beat the Zacks Consensus Estimate of $6.33 by 9.8%. The bottom line increased 2.2% from the year-ago quarter's reported figure of $6.80.
Net sales were $18.61 billion, which beat the Zacks Consensus Estimate of $18.56 billion by 0.3%. The top line also inched up 8.8% from $17.10 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7.00 registered in the prior-year quarter.
NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teledyne's Q3 Earnings & Revenues Beat Estimates, Increase Y/Y

The Coca-Cola Company’s KO shares gained 4.1% after reporting third-quarter 2025 earnings of 82 cents per share, beating the Zacks Consensus Estimate of 78 cents.
Shares of Danaher Corporation DHR added 5.9% after reporting third-quarter 2025 revenues of $6.05 billion, beating the Zacks Consensus Estimate of $5.99 billion.
RTX Corporation’s RTX shares jumped 7.7% after reporting third-quarter 2025 earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.42.
Shares of Vistra Corp. VST lost 4% on utilities emerging as the biggest losing sector of the day.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Oct 22, 2025

For Immediate Release
Chicago, IL – October 22, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Lockheed Martin LMT, Boeing BA, RTX Corp. RTX, Global X Defense Tech ETF SHLD, iShares U.S. Aerospace & Defense ETF ITA and Invesco Aerospace & Defense ETF PPA.
Here are highlights from Tuesday’s Analyst Blog:
Fragile Gaza Ceasefire Puts Defense ETFs in the Spotlight
The fragile ceasefire in Gaza, which took effect on Oct. 10, 2025, faced its most serious test over the past weekend, as a resurgence of violence put the conflict back in the global spotlight. This has naturally intensified investor focus on defense stocks and related exchange-traded funds (ETFs).
This is because geopolitical instability, like the conflict in Gaza, which poses a threat to regional peace, tends to enhance the business prospects of defense contractors as governments increase military spending. The recent escalation serves as a stark reminder of this dynamic, casting a direct spotlight on companies involved in producing the weapons and technologies that power modern warfare.
More Than Just a Conflict: Broader Tailwinds for Defense
Companies that supply military hardware to Israel, particularly U.S.-based firms, see their order books and stock prices potentially boosted by sustained conflict or a perceived need to replenish stockpiles. Major defense contractors, including Lockheed Martin, the supplier of F-35 fighter jets; Boeing, which provides F-15 fighter jets; and RTX Corp., a key participant in the Iron Dome system, have been cited as playing a significant role in supplying arms and components to Israel.
This direct involvement makes them particularly sensitive to the conflict's duration and intensity. No doubt, the 1.8%, 2.2% and 1.8% hike observed in the share price of RTX, LMT and BA, respectively, in the last trading session was largely driven by the latest ceasefire violation by Israel.
While the situation in Gaza is a significant driver, the defense ETFs are also being fueled by a confluence of powerful, longer-term factors like resilient demand, technological innovation and surging defense budgets.
Defense spending is mostly considered non-cyclical. Governments maintain defense budgets regardless of the economic climate, providing defense contractors with predictable revenue streams. This offers a degree of stability that is attractive to investors, especially during times of broader market volatility.
The defense sector is experiencing a revolution driven by artificial intelligence (AI), autonomous drones, and cyber warfare. These technologies are transforming modern warfare and driving defense department spending, creating significant growth opportunities for companies at the forefront of innovation.
Governments worldwide are significantly increasing military spending. In the United States, the recently enacted "One Big Beautiful Bill Act" (OBBB) injected an additional $150 billion in new funding for national security and defense priorities on top of the already substantial annual defense budget.
On the other hand, in June 2025, the North Atlantic Treaty Organization ("NATO") members agreed to a new target to spend 5% of their GDP on defense and security by 2035, marking a significant increase from the previous benchmark of 2%, which was set in 2014. With America being the largest weapon supplier in the world, this enhanced NATO spending should fuel U.S.-based defense manufacturers manifold.
This powerful combination of persistent geopolitical tensions, expanding government budgets, and transformative innovation has positioned the defense sector for sustained growth, making defense ETFs a strategic consideration for portfolios. The Gaza narrative has only intensified this growth prospect.
Defense ETFs in Spotlight
For investors looking to capitalize on this outlook, a diversified approach through ETFs provides exposure to a basket of leading companies. Here are some of the prominent defense ETFs available to investors, particularly those holding BA, RTX, and LMT in their top holdings:
Global X Defense Tech ETF
This fund, with net assets worth $5.10 billion, offers exposure to global defense technology companies. Its top three holdings constitute RTX (7.64%) and Lockheed Martin (7.44%).
SHLD has gained 79.8% year to date. The fund charges 50 bps in fees.
iShares U.S. Aerospace & Defense ETF
This fund, with net assets worth $12.09 billion, provides exposure to U.S. companies that manufacture commercial and military aircraft, as well as other defense equipment. Its top five holdings include RTX (14.46%), BA (8.03%), and LMT (4.63%).
ITA has gained 42.7% year to date. The fund charges 38 bps in fees.
Invesco Aerospace & Defense ETF
This fund, with net asset value of $155.03 as of Oct. 20, 2025, provides exposure to companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top five holdings include Boeing (7.84%), RTX (7.74%) and Lockheed Martin (7.29%).
PPA has gained 35.7% year to date. It charges 58 bps in fees.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Lockheed Martin, Boeing, RTX, SHLD, ITA and PPA

The S&P 500 Index ($SPX) (SPY) on Tuesday closed unchanged, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.47%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.06%. December E-mini S&P futures (ESZ25) fell -0.05%, and December E-mini Nasdaq futures (NQZ25) fell -0.08%.
Stock indexes settled mixed on Tuesday, with the S&P 500 posting a one-week high and the Dow Jones Industrial Average reaching a new record high. The broader market found support Tuesday on some positive corporate news. General Motors closed up more than +14% after raising its full-year adjusted EPS estimate. Also, 3M Co closed up more than +7% after raising its full-year adjusted EPS continuing operations estimate. In addition, RTX Corp closed up more than +7% after raising its full-year adjusted sales estimate. Finally, Coca-Cola closed up more than +4% after reporting better-than-expected Q3 comparable EPS.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the negative side, mining stocks retreated on Tuesday after the price of gold sank by more than -5% and silver prices plunged by more than -7% due to long liquidation pressures following their rallies to record highs last week. Also, weakness in semiconductor stocks weighed on the Nasdaq 100.
Gains in stocks were limited on Tuesday as they consolidated some of their sharp gains made over the past two sessions. The market is focusing on progress in US-China trade talks, as President Trump on Monday reiterated his threat to boost tariffs on Chinese goods "if there isn't a deal" by November 1. President Trump is scheduled to meet Chinese President Xi Jinping next week on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea.
In some minor US economic news, the Oct Philadelphia Fed non-manufacturing business activity survey fell -9.9 to a 4-month low of -22.2.
The shutdown of the US government continues into its fourth week, weighing on market sentiment and delaying key economic reports. The government shutdown means delays in the release of government reports, including the last three weeks of weekly initial unemployment claims and the Sep payroll report. The Bureau of Labor Statistics (BLS) said the September consumer price report, which was initially scheduled to be released last Wednesday, will be released this Friday. The White House has warned that if the government shutdown lingers, it would trigger widespread dismissals of employees in government programs that don't align with President Trump's priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
Trade tensions between the US and China, the ongoing US government shutdown, and fears about credit quality in the US have sparked a buying spree in precious metals as a haven, with gold and silver reaching fresh all-time highs last Friday.
The markets this week will focus on earnings results as the Q3 earnings season continues. Rising corporate earnings expectations are a bullish backdrop for stocks. According to Bloomberg Intelligence, 85% of the S&P 500 companies that have reported so far have beaten forecasts. Also, more than 22% of companies in the S&P 500 that have provided guidance for their Q3 earnings results are expected to beat analysts' expectations, the highest in a year. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from 6.4% in Q2.
The markets are pricing in a 97% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets settled higher on Tuesday. The Euro Stoxx 50 rallied to a new all-time high and closed up +0.10%. China's Shanghai Composite closed up +1.36%. Japan's Nikkei Stock 225 rose to a new record high and closed up by +0.27%.
Interest Rates
December 10-year T-notes (ZNZ5) on Tuesday closed up +5 ticks. The 10-year T-note yield fell -2.5 bp to 3.955%. T-note prices moved higher on Tuesday due to the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates. T-notes remained higher after the Oct Philadelphia Fed non-manufacturing business activity survey fell to a 4-month low.
European government bond yields moved lower on Tuesday. The 10-year German bund yield fell -2.5 bp to 2.552%. The 10-year UK gilt yield fell -2.7 bp to 4.478%.
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
General Motors (GM) closed up more than +14% to lead gainers in the S&P 500 after raising its full-year adjusted EPS estimate to $9.75-$10.50 from a previous estimate of $8.25-$10.00.
Halliburton (HAL) closed up more than +12% after reporting Q3 revenue of $5.60 billion, better than the consensus of $5.39 billion.
Warner Bros. Discovery (WBD) closed up more than +11% to lead gainers in the Nasdaq 100 after it announced it has initiated a review of strategic alternatives to maximize shareholder value.
Gartner (IT) closed up more than +8% after William Balire said it was "impressed" by a demo of the company's AI-powered AskGartner tool at the IT Symposium/Xpo 2025 conference.
3M Co (MMM) closed up more than +7% to lead gainers in the Dow Jones industrials after raising its full-year adjusted EPS continuing operations to $7.95-$8.05 from a previous estimate of $7.75-$8.00.
RTX Corp (RTX) closed up more than +7% after raising its full-year adjusted sales estimate to $86.5 billion-$87.0 billion from a previous estimate of $84.75 billion-$85.50 billion.
Danaher (DHR) closed up more than +6% after reporting Q3 adjusted EPS of $1.89, stronger than the consensus of $1.72.
Crown Holdings (CCK) closed up more than +5% after boosting its full-year adjusted EPS estimate to $7.70-$7.80 from a previous estimate of $7.10-$7.50, above the consensus of $7.39.
Coca-Cola (KO) closed up more than +3% after reporting Q3 comparable EPS of 82 cents, above the consensus of 78 cents.
Mining stocks sold off on Tuesday after gold prices sank more than -5% and silver prices plunged more than -7%. As a result, Newmont (NEM) closed down more than -9% to lead losers in the S&P 500. Also, Barrick Mining (B), Coeur Mining (CDE), Kinross Gold (KGC), and Anglogold Ashanti Plc (AU) closed down more than -9%.
Chipmakers declined on Tuesday, weighing on the Nasdaq 100. Micron Technology (MU) closed down more than -2%. Also, Broadcom (AVGO), Marvell Technology (MRVL), ASML Holding NV (ASML), ARM Holdings Plc (ARM), and Advanced Micro Devices (AMD) closed down more than -1%. In addition, Applied Materials (AMAT) closed down -0.93% and Nvidia (NVDA) closed down -0.81%.
Cleveland-Cliffs (CLF) closed down more than -17% after Wells Fargo Securities downgraded the stock to underweight from equal weight with a price target of $11.
NuScale Power (SMR) closed down more than -13% after Citigroup downgraded the stock to sell from neutral with a price target of $37.50.
Tempus AI (TEM) closed down more than -3% after TD Cowen downgraded the stock to hold from buy, citing valuation.
Alphabet (GOOGL) closed down by more than -2% after OpenAI unveiled the first AI-powered web browser, sparking competition with Alphabet's Google.
Verizon Communications (VZ) closed down more than -1% to lead losers in the Dow Jones Industrials after BNP Paribas Exane downgraded the stock to neutral from outperform.
Elevance Health (ELV) closed down more than -1% despite reporting better-than-expected Q3 operating revenue after the company said it sees 2025 Medicaid operating margin "modestly negative."
Earnings Reports(10/22/2025)
Alcoa Corp (AA), Amphenol Corp (APH), Annaly Capital Management Inc (NLY), AT&T Inc (T), Avery Dennison Corp (AVY), Boston Scientific Corp (BSX), CACI International Inc (CACI), Churchill Downs Inc (CHDN), CME Group Inc (CME), Crown Castle Inc (CCI), Equity LifeStyle Properties In (ELS), First American Financial Corp (FAF), FirstEnergy Corp (FE), GE Vernova Inc (GEV), Globe Life Inc (GL), Graco Inc (GGG), Hexcel Corp (HXL), Hilton Worldwide Holdings Inc (HLT), International Business Machine (IBM), Kinder Morgan Inc (KMI), Knight-Swift Transportation Holdings Inc (KNX), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Lithia Motors Inc (LAD), Medpace Holdings Inc (MEDP), Molina Healthcare Inc (MOH), Moody's Corp (MCO), Northern Trust Corp (NTRS), NVR Inc (NVR), O'Reilly Automotive Inc (ORLY), Packaging Corp of America (PKG), QuantumScape Corp (QS), Raymond James Financial Inc (RJF), Reliance Inc (RS), Robert Half Inc (RHI), SEI Investments Co (SEIC), Sonoco Products Co (SON), Southern Copper Corp (SCCO), SOUTHSTATE BANK CORP (SSB), Southwest Airlines Co (LUV), Stifel Financial Corp (SF), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Thermo Fisher Scientific Inc (TMO), Travel + Leisure Co (TNL), United Rentals Inc (URI), Vertiv Holdings Co (VRT), Viking Therapeutics Inc (VKTX), Westinghouse Air Brake Technol (WAB), Wyndham Hotels & Resorts Inc (WH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RTX Corporation

Price history and volume

Shares 360

Investment risk — low

Investment potential — high

AI Factors

Iran vs US war

Iran vs US war

Ukraine War

Israel-Hamas Conflict

Boeing

About