RTX Raises 2026 Sales and Earnings Outlook Again

The Tip Desk · October 22, 2026 · 4 min read

Adjusted earnings were $2.26 a share after a second consecutive lift to full-year adjusted sales, EPS, and free cash flow.

RTX (RTX) raised its full-year 2026 outlook for a second consecutive quarter, lifting adjusted sales to $97.0 billion to $97.5 billion from $95.0 billion to $96.0 billion, organic sales growth to 10 to 11 percent from 8 to 9 percent, adjusted EPS 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.

The aerospace and defense company said third-quarter sales were $25.0 billion, up 11 percent versus the prior year and 12 percent organically. Adjusted EPS was $2.26, up 33 percent versus the prior year, including $0.25 of IEEPA cost recovery. GAAP EPS was $1.89, including $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items.

Chairman and CEO Chris Calio said strong execution and operational focus enabled double-digit organic sales growth across commercial aerospace and defense, and that demand remained robust with more than $81 billion of new commercial and defense awards. Company backlog reached a record $340 billion, including $176 billion of commercial and $164 billion of defense, up from $289 billion at the end of the second quarter. RTX said it was awarded Tomahawk and AMRAAM multi-year undefinitized production contracts in the third quarter.

Adjusted net income was $3.1 billion, up 34 percent versus the prior year, driven by $1.1 billion of adjusted segment operating profit growth across all three segments, including $0.4 billion of IEEPA recovery, partially offset by higher taxes and lower pension income. Operating cash flow was $2.9 billion, including approximately $0.3 billion from IEEPA recovery. Capital expenditures were $0.7 billion, resulting in free cash flow of $2.1 billion.

Collins Aerospace sales were $8,382 million, up 10 percent versus the prior year. Excluding divestitures, organic sales rose 12 percent, on a 23 percent increase in commercial OE, a 9 percent increase in commercial aftermarket, and a 7 percent increase in defense. The company said commercial OE growth was driven by higher volume on narrowbody and widebody platforms, commercial aftermarket by modifications and upgrades, provisioning, and parts and repair, and defense by higher volume across multiple programs. Reported operating profit was $1,789 million, up 42 percent, with reported ROS of 21.3 percent versus 16.5 percent a year earlier. Adjusted operating profit was $1,788 million, up 50 percent, with adjusted ROS of 21.3 percent versus 15.7 percent, driven by drop through on higher commercial volume, commercial mix, and approximately $250 million of IEEPA recovery.

Pratt & Whitney sales were $9,231 million, up 10 percent versus the prior year, driven by a 21 percent increase in commercial aftermarket and a 2 percent increase in military, partially offset by a 5 percent decrease in commercial OE. The company said commercial aftermarket growth was driven by higher volume, primarily GTF, and the commercial OE decline by large commercial engine mix. Reported operating profit was $608 million, down 19 percent, including a $363 million charge related to a customer bankruptcy, with reported ROS of 6.6 percent versus 8.9 percent a year earlier. Adjusted operating profit was $968 million, up 29 percent, with adjusted ROS of 10.5 percent versus 8.9 percent, driven by drop through on higher commercial aftermarket volume and approximately $160 million of IEEPA recovery, partially offset by large commercial OE mix, commercial aftermarket mix, and higher SG&A expense.

Raytheon sales were $8,031 million, up 14 percent versus the prior year, driven by higher volume on naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk. Reported and adjusted operating profit were $1,133 million and $1,134 million, both up 32 percent, with ROS of 14.1 percent versus 12.2 percent a year earlier. The company said the increase was driven by improved net productivity, higher volume, and favorable mix, including Patriot programs, with productivity in the quarter including approximately $85 million of benefits associated with an international contract modification and a favorable adjustment related to an offset obligation.

Calio said that given performance year to date, RTX is again raising its full-year outlook for adjusted sales, adjusted EPS, and free cash flow, and that the company remains focused on increasing output, optimizing its cost structure, and investing in new technologies.