RTX Earnings Lift 2026 Outlook

RTX Corporation (NYSE: RTX) on July 23, 2026 reported Q2 results and raised its full-year guidance for adjusted sales, adjusted earnings per share (EPS), and free cash flow, citing stronger revenue, improved cash generation, and a record backlog.

Q2 Results and Cash Flow

Adjusted sales for the quarter ended June 2026 reached $24.7 billion, up 14% year over year and 16% organically. Growth was broad-based across aerospace and defense units, including Pratt & Whitney, Collins Aerospace, and Raytheon, supporting the outlook upgrade.

Adjusted EPS rose 21% to $1.89, beating the consensus estimate by $0.23 per share. The company said stronger adjusted profitability was a key factor behind the higher annual targets.

On a GAAP basis, EPS was $1.57, which included $0.27 from acquisition accounting adjustments and $0.05 from restructuring and other non-recurring items. Net income was $2.1 billion, while adjusted net income increased 22% to $2.6 billion.

Operating cash flow totaled $3.5 billion, and free cash flow swung to $2.9 billion from a negative $72 million a year earlier. Management cited the positive free cash flow as a basis for raising the full-year cash flow target.

Guidance and Backlog Strength

RTX’s backlog stood at $289 billion, with $170 billion in commercial work and $119 billion in defense programs, providing multi-year revenue visibility. Executives said the backlog was a principal reason for raising the year’s targets.

Pratt & Whitney’s geared turbofan (GTF) engine backlog exceeded 8,000 engines, with more than 800 orders and commitments year to date in 2026, reflecting ongoing aftermarket and maintenance demand.

The company raised its full-year adjusted sales outlook to $95.0–$96.0 billion from $92.5–$93.5 billion, implying organic sales growth of 8–9%. The sales midpoint rose about 2.7%, surpassing earlier targets.

Adjusted EPS guidance increased to $7.10–$7.25 per share from $6.70–$6.90, above analysts’ consensus near $6.91–$6.92. RTX defines adjusted EPS as a non-GAAP measure excluding acquisition accounting and certain restructuring and non-recurring items.

Free cash flow guidance was raised to $8.50–$8.75 billion from $8.25–$8.75 billion. Separately, RTX agreed to sell Raytheon’s Blue Canyon Technologies for $620 million, disclosed alongside the quarterly results.

Executives attributed the outlook boost to persistent maintenance demand as airlines keep older jets in service and to defense orders as governments replenish stockpiles amid conflicts in Ukraine and the Middle East. The record backlog and stronger cash conversion underpinned the revised targets.

The company’s earnings presentation reiterated the raised full-year outlook and highlighted the quarter’s metrics, framing the results as evidence of near-term earnings momentum and longer-term revenue visibility across aerospace and defense.