11:24 AM EDT, 10/07/2025 (MT Newswires) -- The major US defense companies are expected to report solid Q3 results reflecting steady growth, contract momentum, and supportive government spending, RBC Capital Markets said in a note Monday.

Analysts, including Ken Herbert, said that these companies have seen their stock prices rise by about 30% year-to-date, with most of that growth occurring since spring. The rally appears to be driven by investor optimism around the details of the One Big Beautiful Bill and roughly $150 billion in supplemental defense funding, as well as easing concerns about the Department of Government Efficiency.

Lockheed Martin ( LMT ) , Northrop Grumman ( NOC ) , and RTX (RTX) will report results on Oct. 21, followed by General Dynamics ( GD ) on Oct. 24 and L3Harris ( LHX ) on Oct. 30, according to the note.

Growth is expected to accelerate in H2 2025, with Q3 consensus estimates averaging around 7%. Among the group, General Dynamics ( GD ) likely has the lowest hurdle to clear this quarter, while H2 setup looks especially strong for RTX, the analysts said, adding that the budget environment remains supportive, with no major impact expected from the government shutdown.

Some cautious commentary on the Golden Dome program is expected, and delays and efforts to boost competition, which could benefit defense tech firms, may weigh slightly on sentiment. "For defense prime exposure, we continue to favor Northrop Grumman ( NOC ) and RTX, and in particular see the H2 2025 RTX set-up as favorable."

The analysts raised General Dynamics' ( GD ) price target from $330 to $360; L3Harris ( LHX ) from $280 to $315; Lockheed Martin ( LMT ) from $440 to $525; Northrop Grumman ( NOC ) from $650 to $675; and RTX from $170 to $200. Stock ratings were unchanged.

Price: 344.10, Change: -2.40, Percent Change: -0.69