RTX Corporation (RTX) Delivers Robust Q2 2026 Results with +14% Revenue Growth
Key Takeaways
- RTX Corporation reported Q2 2026 adjusted earnings per share (EPS) of $1.89, handily beating the Wall Street consensus estimate of $1.66 by $0.23, a 13.9% positive surprise.
- Revenue reached $24.7 billion, up 14% year-over-year and 16% organically, exceeding analyst expectations of approximately $22.88 billion by nearly $1.8 billion.
- All three business segments delivered double-digit organic growth: Collins Aerospace rose 13%, Pratt & Whitney climbed 17%, and Raytheon surged 18%.
- The company raised its full-year 2026 guidance across adjusted sales, adjusted EPS, and free cash flow, citing strong first-half performance and robust demand.
- Total backlog reached a record $289 billion, up 22% year-over-year, providing multiyear revenue visibility across both commercial aerospace and defense markets.
Why These Results Matter Now
RTX Corporation's second-quarter 2026 earnings, released before the market opened on July 23, arrived at a moment of heightened global defense spending and accelerating commercial aerospace recovery. As one of the world's largest aerospace and defense contractors, RTX serves as a bellwether for both the commercial aviation cycle and international defense procurement trends. The Q2 results matter because they offer a real-time read on whether rising geopolitical tensions are translating into tangible order flow, and whether air travel demand continues to support aftermarket services growth. With a $289 billion backlog and a raised full-year outlook, RTX's report provides critical signals about the durability of defense budgets, the health of global airline fleets, and the company's ability to navigate persistent supply chain constraints while scaling production capacity.
Breaking Down the Reported Numbers
RTX posted second-quarter 2026 sales of $24.7 billion, representing 14% reported growth and 16% organic growth compared to the same period last year. Adjusted earnings per share came in at $1.89, a 21% increase from $1.56 in Q2 2025. On a GAAP basis, EPS was $1.57, which included $0.27 in acquisition accounting adjustments and $0.05 in restructuring and other non-recurring items. Net income attributable to common shareowners was $2.1 billion on a GAAP basis, while adjusted net income reached $2.6 billion, up 22% year-over-year.
Segment-level performance underscored the broad-based nature of the quarter's strength. Collins Aerospace delivered adjusted sales of $8.2 billion with 13% organic growth, driven by a 26% surge in commercial original equipment (OE) sales and 10% growth in commercial aftermarket. Pratt & Whitney generated $8.9 billion in adjusted sales, up 17% organically, fueled by 25% growth in commercial aftermarket and 23% growth in military sales. Raytheon recorded $8.3 billion in adjusted sales, with 18% organic growth, supported by higher volumes across land and air defense systems, naval programs, and missile programs including Patriot and AMRAAM (Advanced Medium-Range Air-to-Air Missile).
Free cash flow reached $2.9 billion, a dramatic turnaround from negative $72 million in the prior-year quarter, reflecting stronger operating profit and improved working capital management. The company also announced an agreement to sell Raytheon's Blue Canyon Technologies business for $620 million. I also checked this using Tickeron’s AI Screener to see how RTX compares with other names in the aerospace and defense space.
Market Reaction and Sentiment
RTX shares surged approximately 5.5% in premarket trading on July 23 following the earnings release, climbing to around $205.50 and approaching a cup-with-handle buy point near $203.94. The strong positive reaction reflected not only the magnitude of the earnings beat but also the quality of the quarter, with organic growth, margin expansion, and free cash flow generation all exceeding expectations. Investors were particularly encouraged by the raised full-year guidance, which signaled management confidence in sustained momentum through the second half of 2026. The record backlog of $289 billion and a Raytheon book-to-bill ratio of 2.42 in the quarter further reinforced bullish sentiment. Heading into the print, analysts had anticipated a solid quarter, but the breadth of outperformance across all three segments exceeded even optimistic forecasts, validating the thesis that RTX is benefiting simultaneously from commercial aerospace recovery and elevated global defense spending.
Forward Guidance and Factors to Monitor
RTX's updated full-year 2026 guidance now projects adjusted sales of $95.0 billion to $96.0 billion, up from the prior range of $92.5 billion to $93.5 billion, with organic sales growth expected at 8% to 9%. Adjusted EPS guidance was raised to $7.10 to $7.25, compared to the previous $6.70 to $6.90 range. Free cash flow is now forecast at $8.50 billion to $8.75 billion, with the lower end lifted from $8.25 billion.
Investors should monitor several key factors in the quarters ahead. First, the pace at which framework agreements with the U.S. Department of Defense convert into definitive contracts will directly influence Raytheon's revenue trajectory and backlog growth. These agreements, once finalized, could provide a significant tailwind for margins and production scale.
Second, Pratt & Whitney's geared turbofan (GTF) engine aftermarket dynamics remain central to the investment case. The company reported a more than 40% year-over-year improvement in PW1100G maintenance, repair, and overhaul (MRO) output, and management expects record GTF engine deliveries in 2026. Continued progress on reducing aircraft-on-ground (AOG) events and expanding MRO capacity will be critical for sustaining commercial aftermarket growth.
Third, supply chain constraints and working capital requirements deserve attention. Management noted that higher inventory levels to support growth may create working capital headwinds, and second-half revenue growth is expected to moderate due to difficult year-over-year comparisons, particularly at Pratt & Whitney. Finally, the broader geopolitical environment, including the proposed $1.5 trillion U.S. military budget for fiscal 2027, could serve as a sustained demand catalyst for RTX's defense portfolio, making government budget outcomes a key macro variable to track.
Enhancing Analysis with Tickeron’s AI Screener
In my own research workflow, I frequently use Tickeron’s AI Screener to scan for stocks in the aerospace and defense sector that show similar momentum in fundamentals and technical patterns. The platform lets users apply filters across industry groups, market cap, volatility, AI signals, and more to surface ideas that align with specific criteria. It has become a useful complement when evaluating names like RTX alongside peers, helping to put quarterly results into broader context without replacing traditional due diligence.
Disclaimer
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RTX's RSI Oscillator entering overbought territory
The RSI Indicator for RTX moved into overbought territory on July 23, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RTX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
RTX broke above its upper Bollinger Band on July 23, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where RTX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 23, 2026. You may want to consider a long position or call options on RTX as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for RTX just turned positive on July 23, 2026. Looking at past instances where RTX's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for RTX crossed bullishly above the 50-day moving average on June 17, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for RTX moved above the 200-day moving average on July 23, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RTX advanced for three days, in of 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 315 cases where RTX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. RTX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.243) is normal, around the industry mean (9.920). P/E Ratio (36.824) is within average values for comparable stocks, (91.310). Projected Growth (PEG Ratio) (2.866) is also within normal values, averaging (4.044). Dividend Yield (0.013) settles around the average of (0.016) among similar stocks. P/S Ratio (3.048) is also within normal values, averaging (35.226).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a company, which engages in the provision of aerospace and defense systems and services for commercial, military, and government customers
Industry AerospaceDefense
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