01—Abstract
Summary
Summary of the 10-Q filed October 20, 2026. Cited figures are marked; the original filing is the authoritative source.
RTX Corporation's third quarter of 2026 (ended September 30, 2026) filing indicates a strong operational performance with significant year-over-year growth in total net sales and operating profit.
Total net sales reached $24.97 billiona, an increase of 11.1% compared to the prior year quarter, driven by robust organic growth across all three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Net income attributable to common shareowners saw a substantial increase to $2.58 billion, translating to diluted earnings per share of $1.89, up from $1.41 in the same quarter last year.
This growth was supported by improved operating profit margins and efficient cost management, although partially offset by acquisition accounting adjustments and charges related to a customer bankruptcy. The company also reported a healthy increase in operating cash flow, underscoring its financial strength and operational efficiency.
02—Key points
Key Highlights
- Total net sales for the quarter increased by 11.1% year-over-year to $24.97 billion, driven by broad-based organic growth across all segments.
- Net income attributable to common shareowners rose to $2.58 billion, a significant improvement from $1.92 billion in the prior year quarter.
- Diluted Earnings Per Share (EPS) increased to $1.89, up from $1.41 in the third quarter of 2025.
- Operating profit grew by 32.3% year-over-year to $3.34 billion, with operating profit margins expanding to 13.4% from 11.2%.
- Pratt & Whitney segment experienced a $0.4 billion charge related to a customer bankruptcy, impacting operating profit for the quarter.
- Total backlog stood at $340 billion as of September 30, 2026, indicating strong future revenue visibility, with defense backlog showing significant growth.
- The company ended the quarter with $9.17 billion in cash and cash equivalents, demonstrating a solid liquidity position.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 20, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $24.96B$22.48B | +11.1% |
| R&D Expenses | $711.00M$684.00M | +3.9% |
| SG&A Expenses | $1.92B$1.44B | +33.6% |
| Operating Expenses | $21.79B$20.02B | +8.8% |
| Operating Income | $3.34B$2.52B | +32.3% |
| Net Income | $2.58B$1.92B | +34.7% |
| EPS (Basic) | $1.91$1.43 | +33.6% |
| EPS (Diluted) | $1.89$1.41 | +34.0% |
| Shares Outstanding (Basic) | 1.35B1.34B | +0.7% |
| Shares Outstanding (Diluted) | 1.37B1.36B | +0.7% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue growth in the third quarter of 2026?
The primary driver of revenue growth was strong organic sales increases across all three business segments: Collins Aerospace, Pratt & Whitney, and Raytheon. These increases were broad-based, reflecting higher commercial aerospace OEM and aftermarket sales, as well as robust defense sales.
How did the customer bankruptcy at Pratt & Whitney impact the company's financial results?
The customer bankruptcy at Pratt & Whitney resulted in a $0.4 billion charge during the third quarter of 2026. This charge negatively impacted the segment's operating profit and diluted earnings per share by approximately $0.20.
What is the significance of the large defense bookings reported by the Raytheon segment?
The substantial increase in defense bookings for the Raytheon segment, particularly the multi-year contracts for Tomahawk and AMRAAM missiles, indicates significant future revenue streams and highlights strong demand for its defense products. This signals a robust defense market and RTX's strategic position within it.
How has the company's cash position evolved, and what is its liquidity outlook?
RTX Corp. ended the quarter with $9.17 billion in cash and cash equivalents, an increase from $7.435 billion at the end of 2025. The company generated $8.27 billion in net cash from operating activities for the first nine months of 2026 and has access to a $5 billion revolving credit facility. Management believes its current liquidity, operating cash flows, and access to credit markets are sufficient to meet its future operating needs.
06—Continue