RTX (RTX) Earnings Date & Reports

Key Takeaways

• RTX reported third quarter 2026 adjusted EPS (earnings per share) of $2.26, up 33% year over year and well above the analyst consensus estimate of $1.78.
• Adjusted sales rose 11% to $25.0 billion, with 12% organic growth driven by double-digit gains across commercial and defense channels.
• The company's backlog climbed to a record $340 billion, up 36% year over year, on roughly $59 billion of defense awards.
• RTX raised its full-year 2026 outlook for adjusted sales, adjusted EPS, and free cash flow.
• Free cash flow reached $2.1 billion, while segment margins expanded by 310 basis points.

Earnings Context and Why It Matters

RTX Corporation is one of the world's largest aerospace and defense companies, operating through its Collins Aerospace, Pratt & Whitney, and Raytheon segments. Its quarterly results offer a key read on both global commercial aviation demand and defense spending trends. Heading into the report, investors were watching whether strong aftermarket momentum and a surge in defense bookings could sustain double-digit organic growth. The quarter answered that question decisively, with balanced strength across original equipment, aftermarket, and defense channels. The results also carry broader significance because they reflect rising global defense budgets and resilient commercial air travel, two themes that have supported the aerospace and defense sector through 2026.

Reported Results

RTX delivered adjusted sales of $25.0 billion, up 11% year over year and 12% on an organic basis. Revenue of $24.97 billion beat analyst estimates of roughly $24.16 billion. Adjusted EPS came in at $2.26, up 33% from $1.70 a year earlier and comfortably above the consensus estimate of about $1.78, which included a $0.25 per-share benefit from IEEPA (International Emergency Economic Powers Act) cost recovery. On a GAAP (Generally Accepted Accounting Principles) basis, EPS from continuing operations was $1.89.

Adjusted segment operating profit rose 39% to $3.9 billion, with segment margins expanding 310 basis points year over year. Free cash flow was $2.1 billion, which included roughly $300 million of IEEPA recovery. The company ended the quarter with a record backlog of $340 billion, up 36% year over year, supported by nearly $59 billion in defense awards and a book-to-bill ratio of 4.57 in its defense business.

By segment, Collins Aerospace posted adjusted sales of $8.38 billion, up 10%, while Pratt & Whitney generated $9.23 billion, up 10%, led by 21% commercial aftermarket growth. Raytheon reported $8.03 billion, up 14%. Based on the strong quarter, RTX raised its full-year 2026 adjusted sales outlook to a range of $97.0 billion to $97.5 billion and lifted its adjusted EPS and free cash flow guidance.

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Market Reaction and Investor Sentiment

RTX's third quarter report was received favorably by investors, as the company exceeded consensus expectations on both revenue and earnings while simultaneously raising its full-year guidance. The magnitude of the EPS beat, driven in part by IEEPA cost recovery, combined with record backlog and robust defense bookings, reinforced confidence in the company's multi-year growth trajectory. Sentiment was further supported by the conversion of several munitions framework agreements into multi-year production contracts, which adds long-term revenue visibility. Investors did note that a portion of the margin and EPS improvement came from IEEPA recovery, a benefit that is not expected to recur at the same level in future periods, which tempered some of the enthusiasm around the headline results.

Forward Outlook and Key Factors to Monitor

Following the report, several factors will shape how investors evaluate RTX over the coming quarters. First, watch the durability of commercial aftermarket growth. Pratt & Whitney and Collins both posted strong aftermarket results, and continued strength in MRO (maintenance, repair, and overhaul) demand remains central to the company's margin trajectory.

Second, monitor the ramp of the GTF engine fleet management plan. Pratt increased PW1100 MRO output by more than 35% year over year, and management expects further reductions in aircraft-on-ground (AOG) levels during the fourth quarter. Progress here directly influences customer confidence and aftermarket profitability.

Third, keep an eye on defense execution. With a record backlog and a book-to-bill ratio of 4.57, the key question is whether RTX can scale supply chains and production capacity fast enough to convert those awards into revenue and margin expansion over the next several years.

Finally, consider the one-time nature of the IEEPA recovery. Because a meaningful portion of the quarter's EPS and margin gains came from this non-recurring benefit, investors will be focused on the company's underlying operational growth as it moves through the fourth quarter and into 2027.

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