RTX raises 2026 outlook again as third-quarter adjusted EPS jumps 33%

RTX raised its full-year forecast again on Tuesday after double-digit growth in commercial aerospace and defense lifted third-quarter adjusted earnings 33% to $2.26 a share, from $1.70 a year earlier.

Sales rose 11% to $25.0 billion from $22.5 billion, and 12% on an organic basis, the parent of Collins Aerospace, Pratt & Whitney and Raytheon said in its earnings release filed with an 8-K. Adjusted EPS included 25 cents of cost recovery tied to the International Emergency Economic Powers Act, or IEEPA.

On a GAAP basis, net income attributable to common shareowners climbed 35% to $2.58 billion, or $1.89 a diluted share, from $1.92 billion, or $1.41. GAAP results included 26 cents a share of acquisition accounting adjustments and 11 cents of restructuring and other items.

A bigger forecast and a record backlog

RTX now expects 2026 adjusted sales of $97.0 billion to $97.5 billion, up from $95.0 billion to $96.0 billion, with organic growth of 10% to 11% instead of 8% to 9%. It raised its adjusted EPS outlook to $7.65 to $7.75 from $7.10 to $7.25, and free cash flow to $9.0 billion to $9.2 billion from $8.50 billion to $8.75 billion.

"Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," Chairman and CEO Chris Calio said. That backlog splits into $176 billion of commercial work and $164 billion of defense. RTX also won multi-year undefinitized production contracts for Tomahawk and AMRAAM in the quarter.

Collins surges; Pratt absorbs a charge

Collins Aerospace delivered the biggest profit jump. Sales rose 10% to $8.38 billion, and adjusted operating profit rose 50% to $1.79 billion, lifting its adjusted margin to 21.3% from 15.7%. Commercial original-equipment sales climbed 23% and aftermarket sales 9%, and the profit gain included about $250 million of IEEPA recovery.

Pratt & Whitney's sales also rose 10%, to $9.23 billion, on a 21% gain in commercial aftermarket. Its reported operating profit fell 19% to $608 million after a $363 million charge related to a customer bankruptcy, while adjusted operating profit rose 29% to $968 million.

Raytheon's sales grew 14% to $8.03 billion on naval programs and land and air defense systems, including Patriot, Standard Missile and Tomahawk. Its operating profit rose 32% to $1.13 billion.

Cash flow

Operating cash flow fell to $2.87 billion from $4.64 billion a year earlier, and free cash flow dropped 47% to $2.12 billion. RTX paid $984 million in dividends during the quarter and did not repurchase stock, according to its cash flow statement.

By the numbers

• Adjusted EPS: $2.26, vs. $1.70
• GAAP EPS: $1.89, vs. $1.41
• Sales: $25.0 billion, up 11%
• Backlog: $340 billion
• 2026 adjusted EPS outlook: $7.65 to $7.75
• 2026 free cash flow outlook: $9.0 billion to $9.2 billion

Sources

1. RTX Corporation, Form 8-K (Item 2.02) with Exhibit 99 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000101829-26-000030

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