RTX Corporation (RTX) Earnings

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Sep 2026upcoming

Next quarter

Reports Oct 20, 2026.

Consensus is $1.75 EPS for Sep 2026 across 5 estimates, ranging $1.72 to $1.80.

RTX Jun 2026

Reported Jul 23, 2026

: 13.86%
: +1.74%

: $1.66
: $1.89
: —
: $24.71B

Reported results

: $24.71B; from $21.58B
: $2.81B; from $2.15B
: 11.38%; from 9.94%
: $2.14B; from $1.66B
: $1.57; from $1.22

Highlights

Earnings beat: Adjusted EPS was $1.89 versus the $1.66 consensus estimate, a 13.86% surprise, and rose 21% from $1.56 a year ago; GAAP diluted EPS was $1.57 versus $1.22.
Broad-based growth: Sales increased 14% year over year to $24.71 billion, including 16% organic growth, while operating income rose 31% to $2.81 billion and net income attributable to common shareowners rose 29% to $2.14 billion.
Raised outlook: RTX lifted 2026 adjusted sales guidance to $95.0-$96.0 billion from $92.5-$93.5 billion, organic growth to 8%-9% from 5%-6%, adjusted EPS to $7.10-$7.25 from $6.70-$6.90, and free cash flow to $8.50-$8.75 billion from $8.25-$8.75 billion.
Cash generation: Operating cash flow was $3.55 billion and free cash flow was $2.88 billion, compared with $458 million and negative $72 million, respectively, in Q2 2025; first-half free cash flow reached $4.19 billion.
Backlog: Company backlog was $289 billion, up 22% year over year, comprising $170 billion of commercial backlog and $119 billion of defense backlog; approximately 25% of total remaining performance obligations is expected to convert to revenue over the next 12 months.
Raytheon strength: Raytheon sales rose 18% to $8.27 billion and adjusted operating profit increased 29% to $1.04 billion, driven by higher volume in Patriot, Standard Missile, AMRAAM, land and air defense, naval, and air and space programs.
Pratt recovery: Pratt & Whitney sales increased 16% to $8.89 billion and adjusted operating profit rose 22% to $740 million, led by 25% commercial aftermarket growth and 23% military growth, despite an 8% decline in commercial OE.
Collins mix: Collins Aerospace sales grew 8% to $8.21 billion, or 13% organically excluding divestitures, with commercial OE up 26%, commercial aftermarket up 10%, and defense up 7%; adjusted operating margin expanded 30 basis points to 16.7%.
Portfolio action: RTX agreed to sell Raytheon’s Blue Canyon Technologies business for $620 million, subject to customary closing conditions.

Analysis

RTX’s second quarter was a broad-based demand and execution print, with adjusted EPS of $1.89 beating the $1.66 consensus by 13.86% and rising 21% from $1.56 in Q2 2025. Reported sales of $24.71 billion increased 14% year over year, while operating income rose 31% to $2.81 billion and net income attributable to common shareowners increased 29% to $2.14 billion. Relative to Q1 2026, sales increased from $22.08 billion and operating income from $2.56 billion, while net income rose modestly from $2.06 billion.

The defining feature was growth across all three businesses, supported by commercial aerospace aftermarket demand and defense volume. Raytheon delivered the strongest segment growth, while Pratt’s aftermarket and military expansion more than offset weaker commercial OE. Collins also expanded margins despite divestiture headwinds. Cash conversion was a major improvement, with $2.88 billion of free cash flow versus negative $72 million a year ago. With backlog up 22% to $289 billion and strong first-half performance, RTX raised its sales, organic growth, adjusted EPS, and free cash flow outlook for 2026. GAAP results remained below adjusted results because of $474 million of acquisition accounting adjustments and $75 million of restructuring costs.

Raised 2026 outlook

RTX raised each of the principal 2026 adjusted financial targets, reflecting first-half performance and the company’s $289 billion backlog. The updated outlook implies continued growth, though the reported quarter also included sizable adjustments between GAAP and adjusted earnings.

Sales and organic growth: Adjusted sales guidance increased to $95.0-$96.0 billion from $92.5-$93.5 billion, while organic sales growth increased to 8%-9% from 5%-6%.
Earnings and cash flow: Adjusted EPS guidance rose to $7.10-$7.25 from $6.70-$6.90, and free cash flow guidance moved to $8.50-$8.75 billion from $8.25-$8.75 billion.
Backlog visibility: Backlog was $289 billion, up 22% year over year, with $170 billion commercial and $119 billion defense. About 25% of remaining performance obligations is expected to be recognized within 12 months, while roughly 45% relates to long-term Pratt commercial aerospace maintenance contracts.

Commercial and defense demand

The quarter showed unusually balanced momentum across aerospace and defense. Consolidated organic sales increased 16%, with approximately $1.3 billion of organic growth each from Pratt & Whitney and Raytheon and $1.0 billion from Collins.

Raytheon: Sales increased 18% to $8.27 billion and adjusted operating profit rose 29% to $1.04 billion, lifting adjusted margin to 12.6% from 11.6%. Growth came from higher volume in land and air defense, naval programs, and air and space defense systems, including Patriot, Standard Missile, and AMRAAM.
Pratt & Whitney: Sales rose 16% to $8.89 billion. Commercial aftermarket increased 25% and military sales 23%, while commercial OE declined 8% because large commercial engine mix outweighed higher deliveries. Adjusted operating profit increased 22% to $740 million, with margin expanding to 8.3% from 8.0%.
Collins Aerospace: Sales grew 8% to $8.21 billion, or 13% organically after divestitures. Commercial OE rose 26%, commercial aftermarket 10%, and defense 7%. Adjusted operating profit increased 10% to $1.37 billion, and adjusted margin expanded to 16.7% from 16.4%.

Cash flow and margins

Cash generation was a major improvement over the prior-year quarter and supported the higher full-year free cash flow outlook. Consolidated operating execution also produced meaningful reported margin expansion.

Free cash flow: Operating cash flow was $3.55 billion against $458 million in Q2 2025. After $669 million of capital expenditure, free cash flow was $2.88 billion versus negative $72 million a year earlier.
First-half conversion: Six-month operating cash flow was $5.40 billion and free cash flow was $4.19 billion, compared with $1.76 billion and $720 million, respectively, in the prior-year period.
Operating leverage: Reported operating margin increased to 11.4% from 9.9%, while adjusted segment operating margin expanded to 12.4% from 12.0%. Higher organic segment profit was partly offset by $474 million of acquisition accounting adjustments and $75 million of restructuring costs.

Portfolio and legal matters

RTX continued to reshape the portfolio while carrying several ongoing non-operating and compliance matters. The quarter included a $69 million litigation charge in adjusted reconciliations, but management excluded it from its view of ongoing operating performance.

Blue Canyon sale: RTX agreed to sell Raytheon’s Blue Canyon Technologies business for approximately $620 million. The transaction remained subject to regulatory approval and customary closing conditions at quarter-end.
Pratt powder metal matter: RTX said aircraft-on-ground levels for the PW1100-powered A320neo fleet are expected to remain elevated through 2026. The related customer compensation accrual declined to $0.4 billion at June 30 from $0.7 billion at year-end, primarily because customer credits were issued during the first half.
Compliance oversight: An independent compliance monitor was engaged in April 2026 under previously disclosed DOJ and SEC resolutions. RTX also reported $218 million accrued for export compliance matters and the related Department of State consent agreement.

RTX Corporation

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