RTX Q3 2026 Results Boost Outlook
RTX Q3 2026 results show increased sales, EPS and guidance after a record $340.0 billion backlog and $81.0 billion in awards likely shifting positions.
KEY TAKEAWAYS
- Reported Q3 sales of $25.0 billion and adjusted EPS of $2.26, with double-digit business growth.
- Raised FY-2026 adjusted sales to $97.0-$97.5 billion and adjusted EPS to $7.65-$7.75.
- Backlog reached $340.0 billion after more than $81.0 billion in new awards; IEEPA added $0.25 per share.
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RTX said in an investor-relations release on Oct. 20, 2026, that its Q3 2026 results reflected strong aerospace and defense demand, prompting the company to raise its full-year 2026 outlook and report a record backlog.
Quarter Results and Business Drivers
For the quarter ended Sept. 30, 2026, RTX reported sales of $24.965 billion, up 11.0% year over year and 12.0% organically, with adjusted diluted earnings per share (EPS) of $2.26, a 33.0% increase from the prior year. The company said $0.25 of the adjusted EPS reflected cost recovery tied to the International Emergency Economic Powers Act (IEEPA). RTX’s backlog reached $340 billion, comprising $176 billion in commercial work and $164 billion in defense, after securing more than $81 billion in new awards.
Management reported double-digit growth across commercial original equipment, commercial aftermarket, and defense activities. Free cash flow for the quarter was $2.1 billion. Adjusted segment operating profit rose by about $1.1 billion across the three segments, including roughly $0.4 billion attributed to the IEEPA recovery.
On a GAAP basis, net income attributable to common shareowners was $2.6 billion, or $1.89 per diluted share, compared with $1.9 billion, or $1.41, in Q3 2025.
Raised 2026 Outlook and IEEPA Impact
The SEC filing and related earnings materials showed RTX raised its full-year adjusted sales outlook to $97.0 billion–$97.5 billion and lifted its organic sales growth target to 10.0%–11.0%. Adjusted EPS guidance increased to $7.65–$7.75, with the midpoint incorporating the $0.25 per share IEEPA cost recovery. Full-year free cash flow guidance rose to $9.0 billion–$9.2 billion. The company expects an adjusted effective tax rate of about 18.0%–18.5% and capital expenditures near $3.1 billion.
Executives said RTX received approximately $300 million of IEEPA tariff refunds in Q3 and expects about $50 million more in Q4. The company’s adjusted measures exclude specified acquisition-accounting, restructuring, and other significant or nonrecurring items, with the IEEPA recovery separately identified as a contributor to adjusted EPS and cash flow.
Management attributed the raised guidance to sustained aerospace and defense demand and the enlarged backlog, which improve revenue and cash-flow visibility for 2026.
