RTX Raises 2026 Outlook as Q3 Sales Rise 11% to $25 Billion

RTX on October 20, 2026 reported third-quarter 2026 sales of $25.0 billion, an 11 percent increase from the prior-year quarter, and raised its full-year 2026 outlook for adjusted sales, adjusted earnings per share, and free cash flow, according to the company’s third-quarter results announcement.

For the quarter ended September 30, 2026, net income attributable to common shareowners was $2,583 million, or $1.89 per diluted share, compared with $1,918 million, or $1.41 per diluted share, a year earlier. The GAAP per-share figure included $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items. Adjusted EPS of $2.26 was up 33 percent from $1.70 a year earlier and included $0.25 from International Emergency Economic Powers Act (IEEPA) cost recovery. Adjusted net income of $3,091 million rose 34 percent from $2,311 million; the company attributed the growth to $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.

The company raised its full-year 2026 adjusted sales outlook to a range of $97.0 billion to $97.5 billion from $95.0 billion to $96.0 billion, its organic sales growth outlook to 10 to 11 percent from 8 to 9 percent, its adjusted EPS outlook to $7.65 to $7.75 from $7.10 to $7.25, and its free cash flow outlook to $9.0 billion to $9.2 billion from $8.50 billion to $8.75 billion.

“Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth across commercial aerospace and defense. Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion,” said RTX Chairman and CEO Chris Calio. Calio said that, given year-to-date performance, the company was again raising its full-year outlook and remained focused on increasing output, optimizing its cost structure, and investing in new technologies.

Company backlog stood at $340 billion at the end of the quarter, comprising $176 billion of commercial and $164 billion of defense work. During the third quarter, RTX was awarded Tomahawk and AMRAAM multi-year undefinitized production contracts.

Segment Results

Collins Aerospace reported third-quarter sales of $8,382 million, up 10 percent from $7,621 million a year earlier. Excluding the impact of divestitures, sales increased 12 percent organically on a 23 percent increase in commercial OE, a 9 percent increase in commercial aftermarket, and a 7 percent increase in defense sales, according to the company. Reported operating profit of $1,789 million was up 42 percent; the prior-year quarter’s reported profit included a gain on the sale of the actuation and flight control business. Adjusted operating profit of $1,788 million rose 50 percent, which the company attributed to drop through on higher commercial volume, commercial mix, and approximately $250 million of IEEPA recovery. Adjusted return on sales was 21.3 percent, compared with 15.7 percent a year earlier.

Pratt & Whitney sales of $9,231 million were up 10 percent. The company said the growth was driven by a 21 percent increase in commercial aftermarket, on higher volume primarily from GTF, and a 2 percent increase in military, partially offset by a 5 percent decrease in commercial OE on large commercial engine mix. Reported operating profit of $608 million fell 19 percent and included a $363 million charge related to a customer bankruptcy. Adjusted operating profit of $968 million rose 29 percent; the company cited 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 selling, general, and administrative expense. Adjusted return on sales was 10.5 percent versus 8.9 percent. In its non-GAAP reconciliation, RTX described the bankruptcy item as a net pre-tax charge of approximately $0.4 billion at Pratt & Whitney, primarily related to contract asset exposures with specific customers.

Raytheon sales of $8,031 million increased 14 percent, driven by higher volume on naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk. Reported operating profit of $1,133 million and adjusted operating profit of $1,134 million each rose 32 percent, which the company attributed to improved net productivity, higher volume, and favorable mix, including Patriot programs. Productivity in the quarter included approximately $85 million of benefits associated with an international contract modification and a favorable adjustment related to an offset obligation. Return on sales was 14.1 percent versus 12.2 percent.

Cash Flow and Nine-Month Results

Third-quarter operating cash flow was $2,868 million, including approximately $0.3 billion from IEEPA recovery, compared with $4,639 million a year earlier. Capital expenditures were $749 million, resulting in free cash flow of $2,119 million versus $4,025 million in the prior-year quarter. In the prior-year quarter, investing cash flows included $1,188 million of proceeds from dispositions of businesses.

For the nine months ended September 30, 2026, sales were $71,749 million versus $64,365 million a year earlier, net income attributable to common shareowners was $6,781 million versus $5,110 million, and adjusted diluted EPS was $5.93 versus $4.74. Operating cash flow was $8,270 million and free cash flow was $6,306 million, compared with $6,402 million and $4,745 million in the prior-year period.

RTX scheduled its third-quarter results conference call for 8:30 a.m. ET on October 20, 2026, with a live webcast on the company’s website and presentation slides available for download prior to the call.