RTX (RTX) Earnings Date & Reports

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.

Earnings Context and Why It Matters

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.

Reported Results

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 (Generally Accepted Accounting Principles) 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.

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Market Reaction and Investor 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 Outlook and Key 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.

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