Industrials & Defense Earnings & Financial Results — Latest Quarter

Caterpillar's Q2 FY2026 results surged on broad demand strength and a one-time tariff recovery, with EPS jumping 68% to $7.77, though rising dealer inventories and ongoing tariff costs present headwinds.

UPS revenue grew 7.6% but operating profit halved as surging fuel and transportation costs eroded margins.

In Q2 FY2026, Boeing increased revenue 8.0% year over year to $24.6B and returned to positive operating income of $156M, but remained unprofitable with a $444M net loss as gross margin compressed and Commercial Airplanes and Defense, Space & Security still faced program execution pressure.

Honeywell's Q2 FY2026 net income surged 262% YoY to $5.68B, driven primarily by a $6.63B gain on the Quantinuum IPO/deconsolidation, while core operating results grew modestly (revenue +4.3%, operating income +5.3%) amid the completed Aerospace Spin-Off and one-for-two reverse stock split.

Lockheed Martin delivered sharply higher Q2 FY2026 profitability, with revenue up 10.5% year over year to $20.1B and net income up 436.8% to $1.8B, primarily reflecting the absence of major 2025 reach-forward losses and stronger missile-defense and F-35 production activity. Source: 10-Q Item 2 MD&A, pp.28-35.

Union Pacific delivered Q2 FY2026 diluted EPS of $3.36 (+6.7% YoY) on revenue of $6.864B (+11.5% YoY), as strong pricing and freight demand offset a higher operating ratio driven by a 60% jump in fuel prices and Norfolk Southern acquisition-related expenses.

RTX delivered strong Q2 FY2026 growth, with revenue up 14.5% to $24.7B, operating income up 31.0% to $2.8B, and diluted EPS up 28.7% to $1.57, supported by higher sales and profit across all three segments. Source: 10-Q Item 2 MD&A, pp.35-39.

Northrop Grumman’s Q2 FY2026 revenue rose 5.1% to $10.876B, but operating income fell 23.1% to $1.096B as the prior-year training-services divestiture gain did not recur and Defense and Space program profitability weakened, partly offset by a sharply lower tax rate.

FedEx delivered FY2026 revenue growth of 7.7% to $94.7B and net income growth of 8.3% to $4.4B, but operating-margin pressure, $744M of Spin-Off costs, global-trade uncertainty, and the June 1, 2026 FedEx Freight Spin-Off remain important considerations. Source: 10-K Item 7 MD&A, pp.42-49.

GE reported strong Q2 FY2026 growth, with revenue up 21.1% to $13.35B and net income up 16.9% to $2.37B, driven by higher engine deliveries, stronger services demand, and an expanding aerospace backlog despite ongoing supply chain and tariff-related pressures.

Deere & Company posted Q2 FY2026 revenue of $13.37B (+4.7% YoY) but net income slipped 1.7% to $1.77B as higher costs offset top-line growth, while operating cash flow surged 83.5% year-to-date to $1.04B.