RTX Q1 2026 Earnings Lift Guidance on Defense Demand
RTX Q1 2026 earnings beat and prompted a FY guidance raise as stronger defense demand and aftermarket sales could shift trader positioning.
KEY TAKEAWAYS
- Raised FY2026 adjusted sales and EPS guidance following a stronger-than-expected quarter tied to defense demand.
- Q1 sales $22.1 billion and adjusted EPS $1.78 beat expectations, and free cash flow rose 65%.
- Backlog totaled $271 billion, supporting the company's execution-based outlook.
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RTX reported stronger-than-expected Q1 2026 earnings on April 21, 2026, prompting a full-year guidance raise. The company cited heightened defense demand and robust aftermarket sales as drivers of improved profit and cash-flow prospects.
Quarter Results and Guidance
RTX reported first-quarter sales of $22.1 billion, up 9% year-over-year and 10% organically, the company said in a press release on April 21, 2026. Adjusted earnings per share rose 21% to $1.78, beating analyst expectations. Reported net income was $2.06 billion, with adjusted net income at $2.43 billion.
Operating cash flow increased 42% to $1.86 billion, while free cash flow jumped 65% to $1.31 billion from $792 million a year earlier.
The company raised its full-year adjusted sales guidance to $92.5 billion–$93.5 billion from $92.0 billion–$93.0 billion and lifted adjusted EPS guidance to $6.70–$6.90 from $6.60–$6.80. It confirmed free cash flow expectations at $8.25 billion–$8.75 billion. The outlook assumes execution on the backlog, continued segment growth, and sustained defense demand without major changes in U.S. government spending or tariffs.
"Given our first quarter performance and the strength we're seeing in our defense business, we are increasing adjusted sales and EPS in our full year outlook," said Chris Calio, RTX chairman and chief executive.
Segment Performance and Backlog
Collins Aerospace posted $7.6 billion in first-quarter sales, up 5% year-over-year, supported by a 15% rise in commercial original equipment, 7% aftermarket growth, and 9% defense gains. Pratt & Whitney recorded $8.2 billion in sales, up 11%, led by a 19% jump in commercial aftermarket and 7% military growth. Raytheon generated $6.9 billion, up 10%, driven by strength in land and air defense and naval munitions.
Backlog totaled $271 billion, split roughly $162 billion commercial and $109 billion defense.
The company noted risks including tariffs affecting Collins Aerospace and Pratt & Whitney, geopolitical and economic conditions, supplier disruptions, and potential shifts in U.S. government spending.
