01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
RTX Corporation reported strong financial performance for the second quarter and first half of 2026, demonstrating significant year-over-year growth across key metrics.
Total net sales increased by 14.5% to $24.7 billiona for the quarter and 11.7% to $46.8 billion for the first half, driven by robust organic growth across all segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Profitability also saw substantial improvement, with operating profit rising 31% to $2.8 billion for the quarter and 33% to $5.4 billion for the first half. This was supported by strong operational execution, favorable sales volume, and the absence of a significant customer bankruptcy charge recorded in the prior year.
Diluted earnings per share (EPS) also showed considerable strength, increasing to $1.57b for the quarter and $3.08 for the first half, up from $1.22 and $2.36, respectively, in the comparable periods of 2025. The company maintained a healthy balance sheet with a solid cash position and managed its debt effectively.
02—Key points
Key Highlights
- Total net sales increased by 14.5% to $24.7 billion in Q2 2026 and by 11.7% to $46.8 billion in H1 2026, driven by broad-based organic growth across all segments.
- Operating profit surged by 31% to $2.8 billion in Q2 2026 and by 33% to $5.4 billion in H1 2026, reflecting improved operational performance and higher sales volumes.
- Diluted EPS grew to $1.57 in Q2 2026 and $3.08 in H1 2026, up from $1.22 and $2.36 in the prior year periods, indicating enhanced profitability per share.
- The defense sector demonstrated significant strength, with Raytheon reporting an 18% increase in net sales for the quarter and substantial defense bookings of $19.9 billion for Q2 2026.
- Pratt & Whitney saw strong growth, particularly in commercial aftermarket sales, contributing to a 16% increase in net sales for the quarter.
- Collins Aerospace also reported an 8% increase in net sales for the quarter, driven by commercial aerospace OEM and aftermarket sales.
- RTX maintained a strong liquidity position with $8.3 billion in cash and cash equivalents as of June 30, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $24.71B$21.58B | +14.5% |
| R&D Expenses | $726.00M$697.00M | +4.2% |
| SG&A Expenses | $1.66B$1.57B | +5.4% |
| Operating Expenses | $21.96B$19.48B | +12.8% |
| Operating Income | $2.81B$2.15B | +31.0% |
| Net Income | $2.14B$1.66B | +29.1% |
| EPS (Basic) | $1.58$1.24 | +27.4% |
| EPS (Diluted) | $1.57$1.22 | +28.7% |
| Shares Outstanding (Basic) | 1.35B1.34B | +0.8% |
| Shares Outstanding (Diluted) | 1.36B1.35B | +0.8% |
05—Questions
Frequently Asked Questions
What were the primary drivers of RTX's revenue growth in the second quarter and first half of 2026?
Revenue growth was primarily driven by strong organic sales increases across all three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. This growth was fueled by higher commercial aerospace OEM and aftermarket sales, increased F135 production volume, and strong performance in land and air defense systems programs like Patriot and Standard Missile.
How did RTX's profitability fare in the reported periods?
Profitability improved significantly. Operating profit increased by 31% for the quarter and 33% for the first half, benefiting from higher sales volumes, improved operational execution, and the absence of a significant customer bankruptcy charge from the prior year. Diluted EPS also saw a substantial increase, reflecting enhanced earnings per share.
What is the outlook for the defense business based on this filing?
The defense business appears strong, particularly for the Raytheon segment, which saw an 18% increase in net sales for the quarter and reported substantial defense bookings of $19.9 billion in Q2 2026. This indicates a robust demand environment for its defense products and systems.
Are there any significant ongoing issues or risks that investors should be aware of?
The filing mentions ongoing legal proceedings, including Cost Accounting Standards (CAS) claims against Pratt & Whitney, and various government investigations and settlements related to past practices. Additionally, the Powder Metal Matter impacting Pratt & Whitney's GTF engines continues to result in elevated aircraft on ground levels and requires ongoing management and customer compensation. The company also faces risks related to global supply chain disruptions, geopolitical instability, and macroeconomic conditions.
06—Continue