10-QPeriod: Q1 FY2026

RTX Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 21, 2026For Securities:RTX

Summary

RTX Corporation reported strong financial performance for the first quarter of 2026, with total net sales increasing by 8.7% year-over-year to $22.1 billion. This growth was driven by solid contributions across all three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Net income attributable to common shareholders rose significantly by 34.1% to $2.1 billion, translating to diluted earnings per share of $1.51, a substantial increase from $1.14 in the prior year's quarter. The company demonstrated robust operational execution, evidenced by a significant increase in operating profit to $2.56 billion, up from $2.04 billion in Q1 2025. This improvement was supported by strong organic sales growth across segments and effective cost management, despite ongoing inflationary pressures and supply chain challenges. RTX also maintained a healthy cash flow from operations, which increased to $1.86 billion, reflecting strong business performance and effective working capital management. The company's backlog remains substantial at $271 billion, providing visibility for future revenue.

Financial Highlights

51 data points
Beta

Revenue

$22.08B

Net Income

$2.06B

9.3% Net Margin

EPS (Diluted)

$1.51

Total Assets

$170.43B

Cash & Equivalents

$6.82B

Free Cash Flow

$1.31B

Financial Statements
Beta
Revenue$22.08B
R&D Expenses$627.00M
SG&A Expenses$1.48B
Operating Expenses$19.59B
Operating Income$2.56B
Net Income$2.06B
EPS (Basic)$1.53
EPS (Diluted)$1.51
Shares Outstanding (Basic)1.35B
Shares Outstanding (Diluted)1.36B

Key Highlights

  • 1Total net sales increased by 8.7% to $22.1 billion in Q1 2026 compared to $20.3 billion in Q1 2025.
  • 2Net income attributable to common shareholders grew by 34.1% to $2.06 billion ($1.51 diluted EPS) from $1.54 billion ($1.14 diluted EPS) in the prior year.
  • 3Operating profit surged by 25.5% to $2.56 billion, with operating profit margin improving to 11.6% from 10.0%.
  • 4Cash flows provided by operating activities increased by 42.6% to $1.86 billion.
  • 5Total backlog remained strong at $271 billion as of March 31, 2026.
  • 6Collins Aerospace saw a 5.0% increase in net sales driven by commercial aerospace and defense growth.
  • 7Pratt & Whitney experienced an 11.0% net sales increase, primarily from commercial aftermarket and military sales.

Frequently Asked Questions

RTX's revenue growth in Q1 2026 was primarily driven by organic sales increases across all three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace benefited from higher commercial aerospace OEM and aftermarket sales, as well as defense sales. Pratt & Whitney saw strong growth in commercial aftermarket and military sales. Raytheon's revenue increase was largely due to higher net sales in land and air defense systems, particularly its Patriot programs, and naval power programs.

The Pratt & Whitney Powder Metal Matter, which requires accelerated inspections and engine removals for the PW1100 GTF fleet, continued to have an impact. While a significant pre-tax charge of $2.9 billion was recorded in Q3 2023, the company had $0.5 billion in other accrued liabilities related to expected customer compensation as of March 31, 2026. The decrease in this accrual during the quarter was primarily due to customer compensation in the form of credits issued. RTX estimates a full-year 2026 cash impact of approximately $0.7 billion related to this matter.

RTX has resolved several significant legal matters, including deferred prosecution agreements (DPAs) with the DOJ and settlements with the SEC related to past investigations. They also entered into a Consent Agreement with the DOS for trade compliance matters. The company has accrued $218 million for other voluntarily disclosed export compliance matters not covered by the CA. While these matters have involved significant financial settlements and ongoing compliance obligations, RTX states that they do not expect these matters to have a material adverse effect on their results of operations, financial condition, or liquidity, though some investigations are ongoing.

RTX acknowledges that inflationary environments have increased material, component, and labor costs, and supply chain disruptions have caused delays and increased costs. They are implementing actions and programs to mitigate these impacts, including strategic and operational initiatives like digital transformation and cost reduction. However, they note that they are not always able to offset cost increases by raising prices, particularly on fixed-price contracts. They anticipate supply chain disruptions will continue.