RTX (NYSE: RTX reported better-than-expected second-quarter 2026 results, with strong execution across its commercial aerospace and defense businesses driving double-digit sales and earnings growth. The aerospace and defense giant also raised its full-year guidance for sales, adjusted earnings per share (EPS), and free cash flow, reflecting robust demand, record backlog, and improved operating performance.
The company posted adjusted EPS of $1.89, which exceeded the consensus estimate of $1.66. Revenues amounted to $24.71 billion, surpassing the consensus mark of $22.88 billion. Adjusted sales increased 14% year over year, or 16% organically, supported by double-digit growth in commercial aftermarket and defense operations.
RTX Corporation Price and Consensus
RTX Corporation price-consensus-chart | RTX Corporation Quote
Commercial Aerospace and Defense Continue to Drive Growth
Chairman and CEO Chris Calio said the company delivered another quarter of strong operational execution as demand remained robust across both commercial aerospace and defense markets. RTX ended the quarter with a record $289 billion backlog, up 22% from a year ago.
On the defense side, Raytheon secured nearly $20 billion in awards during the quarter, including more than $5 billion of Patriot GEM-T interceptor orders, over $4 billion of classified awards, and $1.8 billion in AMRAAM missile contracts. Commercial aerospace also remained healthy, with more than $20 billion in original equipment and aftermarket orders.
Pratt & Whitney Makes Progress on GTF Recovery
Management highlighted continued progress in its geared turbofan (GTF) fleet management plan.
Aircraft-on-ground (AOG) counts for the PW1100 engine family declined another quarter and are now down 25% year to date, supported by a 40%+ increase in MRO output and a 23% reduction in turnaround times.
Pratt & Whitney also received certification for its next-generation GTF Advantage engine and began deliveries to Airbus. The upgraded engine is expected to double time-on-wing performance, with full production transition anticipated in 2028.
Raytheon Capacity Expansion Supports Long-Term Demand
RTX continues investing aggressively to meet accelerating global defense demand.
Raytheon announced an additional $100 million investment to expand Patriot GEM-T production and LTAMDS radar testing capacity while also working with NATO partners to broaden the European supplier base for AMRAAM components. At the same time, Pratt & Whitney is investing more than $100 million to expand GTF maintenance capacity across multiple U.S. facilities.
Management also emphasized that the proposed U.S. defense budget and strong international demand continue to support long-term growth, with international awards exceeding $10 billion during the first half of the year.
Segment Performance Remains Broad-Based
Collins Aerospace generated $8.21 billion in revenues, up 8%, benefiting from strong commercial OE, aftermarket, and defense demand.
Pratt & Whitney reported $8.89 billion in revenues, rising 16% year over year as commercial aftermarket sales surged 25% and military sales increased 23%.
Raytheon delivered another standout quarter, with revenues climbing 18% year over year, driven by higher production of Patriot, Standard Missile, and AMRAAM systems. Operating margins expanded across all three business segments.
RTX Raises Full-Year Outlook
Reflecting strong first-half execution and sustained demand, RTX raised its 2026 financial guidance.
The company now expects:
Adjusted sales of $95.00 billion to $96.0 billion, up from $92.5-93.5 billion. Organic sales growth of 8-9% versus the previous 5-6%. Adjusted EPS of $7.10-$7.25 compared with the previous guidance of $6.70-$6.90. Free cash flow of $8.50-$8.75 billion, with the lower end of the range raised by $250 million. The company now expects: Adjusted sales of $95.0 billion to $96.0 billion, up from $92.5-$93.5 billion. Organic sales growth of 8-9% versus the previous 5-6%. Adjusted EPS of $7.10-$7.25 compared with the prior guidance of $6.70-$6.90. Free cash flow of $8.50-$8.75 billion, with the lower end of the range increased by $250 million. The company now expects: Adjusted sales of $95.0 billion to $96.0 billion, up from $92.5-$93.5 billion. Organic sales growth of 8-9% versus the previous 5-6%. Adjusted EPS of $7.10-$7.25 compared with the prior guidance of $6.70-$6.90. Free cash flow of $8.50-$8.75 billion, with the lower end of the range increased by $250 million.Management Sees Persistent Strong Momentum
During the analyst Q&A, executives reiterated confidence that both commercial aerospace and defense markets remain supportive.
Management noted that supply-chain performance continues improving, defense demand remains exceptionally strong both domestically and internationally, and Raytheon's growing mix of mature international programs should continue supporting margin expansion. Executives also indicated that framework defense agreements currently under negotiation are not yet included in backlog, representing additional upside potential if finalized.
Zacks Rank & Key Metrics
RTX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of D, Growth Score of B, Momentum Score of A, and an overall VGM Score of B.
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