RTX Corp. Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, and the six months ended June 30, 2026. RTX Corporation operates in three primary segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The company is a global provider of high-technology products and services to the aerospace and defense industries. As of June 30, 2026, there were 1,347,758,144 shares of Common Stock outstanding.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Total Net Sales | $24,708 | $21,581 | $46,784 | $41,887 |
| Operating Profit | $2,811 | $2,146 | $5,366 | $4,181 |
| Operating Margin | 11.4% | 9.9% | 11.5% | 10.0% |
| Net Income (Attributable to Common) | $2,139 | $1,657 | $4,198 | $3,192 |
| Diluted EPS | $1.57 | $1.22 | $3.08 | $2.36 |
| Cash from Operations (6M) | $5,402 | $1,763 | ||
| Free Cash Flow (6M) | ||||
| Total Debt | $37,383 | $37,904 | ||
| Cash & Equivalents | $8,305 | $7,435 |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 14.5% year-over-year in Q2 2026, driven by organic growth of $3.5 billion. This was supported by higher sales across all segments: Pratt & Whitney (+$1.3B), Raytheon (+$1.3B), and Collins (+$1.0B).
- Profitability: Operating profit rose 31% in Q2 2026. Margins expanded to 11.4% from 9.9% in the prior year, aided by the absence of a customer bankruptcy charge recorded at Pratt & Whitney in 2025 and lower restructuring costs.
- Segment Performance:
- Collins Aerospace: Sales up 8%; Operating profit up 11% to $1.306B.
- Pratt & Whitney: Sales up 16%; Operating profit up 50% to $738M, driven by commercial aftermarket volume and military F135 production.
- Raytheon: Sales up 18%; Operating profit up 29% to $1.042B, driven by Patriot and Standard Missile programs.
- Divestitures: Net sales were reduced by $391 million in Q2 2026 due to prior-year divestitures in the Collins segment (actuation/flight control and Simmonds Precision Products).
Guidance, Outlook, and Risks
- Backlog: Total backlog stands at $289 billion (up from $268 billion at year-end 2025), comprising $170 billion in commercial and $119 billion in defense. Defense bookings were robust at $23 billion for the quarter.
- Pratt & Whitney Powder Metal Matter: The company continues to manage the PW1100G-JM engine issue. An accrual of $0.4 billion remains for expected customer compensation. Management estimates a full-year 2026 cash impact of approximately $0.7 billion.
- Legal and Regulatory:
- Deferred Prosecution Agreements (DPAs): The company is under DPAs with the DOJ and an SEC Administrative Order regarding Middle East contracts and legacy pricing disputes. A compliance monitor was engaged in April 2026.
- Export Compliance: A $200 million penalty (half suspended) was agreed upon with the Department of State regarding ITAR/AECA violations. $100 million is accrued and being paid in installments.
- Tariffs: The company is pursuing refunds for IEEPA tariffs paid previously following a Supreme Court ruling. New tariffs under different regimes remain a risk factor.
- Capital Allocation: The company paid $1.9 billion in dividends over the first six months of 2026. No share repurchases were made in Q2 2026, with approximately $0.6 billion remaining under the 2023 authorization.
Investor Verification Checklist
- Verify the status of the Pratt & Whitney powder metal remediation plan and the accuracy of the $0.7 billion full-year 2026 cash impact estimate.
- Monitor the resolution of Cost Accounting Standards (CAS) claims against Pratt & Whitney, which total over $3 billion in alleged overpayments plus interest.
- Assess the impact of tariff policies and the success of refund claims for previously paid IEEPA tariffs.
- Review the compliance monitor's initial reports regarding the DPAs and SEC Administrative Order to ensure no further penalties are anticipated.
- Confirm the sustainability of organic growth in the commercial aerospace aftermarket, which drove significant revenue increases in Q2.