What drove the increase in RTX's full-year 2026 guidance?

Management raised adjusted sales guidance to $92.5-$93.5 billion and adjusted EPS guidance to $6.70-$6.90, citing the strong first-quarter performance and momentum in the defense business. The organic growth outlook of 5-6% and the free cash flow range of $8.25-$8.75 billion were maintained or confirmed.

How does the gap between GAAP and adjusted results look this quarter?

GAAP EPS was $1.51 versus adjusted EPS of $1.78, a $0.27 difference driven almost entirely by acquisition accounting adjustments (about $471 million pre-tax in operating profit). Restructuring and other one-time items were minimal this quarter, which is a change from the prior year's larger adjustments.

Is the free cash flow improvement sustainable?

Part of the improvement reflects a $1.8 billion decrease in accounts receivable, which is a timing benefit that may reverse. Offsetting working capital outflows included accounts payable and accrued liabilities (-$1.2B) and contract assets (-$1.0B), so investors should watch cash conversion through the year. Management nonetheless confirmed its full-year free cash flow guidance.

Which segments drove profitability, and were there any weak spots?

Raytheon delivered the strongest margin expansion, with adjusted operating margin up 150 basis points to 12.2% on Patriot and GEM-T volume and favorable mix. Pratt & Whitney adjusted operating profit rose 21%, led by commercial aftermarket growth of 19%. Collins adjusted operating profit grew only 6%, held back by commercial OE mix, divestitures, and tariffs, though its margin was roughly flat at 17.1%. Pratt & Whitney commercial OE sales fell 1% on lower engine deliveries.

What risks should investors keep in mind after this report?

The forward-looking statements highlight continued exposure to the Pratt & Whitney GTF powder metal issue, which requires accelerated engine removals and inspections, as well as the previously disclosed DOJ deferred prosecution agreements and SEC administrative order. Tariffs, supply-chain costs, and changes in U.S. and foreign defense spending are also cited as risk factors.

RTX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.

RTX Corporation's first quarter 2026 results, furnished under Item 2.02 of this 8-K, show a strong start to the year.

Sales rose 9% to $22.1 billion^a (10% organically), and GAAP EPS was $1.51, up 32%. Adjusted EPS of $1.78 grew 21%, and adjusted net income rose 22% to $2.4 billion on growth across all three segments plus lower interest and tax expense. Operating cash flow of $1.9 billion and free cash flow of $1.3 billion (up 65%) were supported by a large favorable change in accounts receivable.

Backlog reached $271 billion^b, including $162 billion of commercial and $109 billion of defense. Management raised its 2026 adjusted sales outlook to $92.5-$93.5 billion (from $92.0-$93.0 billion) and its adjusted EPS outlook to $6.70-$6.90 (from $6.60-$6.80). Organic sales growth is guided at 5-6%, and free cash flow guidance of $8.25-$8.75 billion was confirmed.

The guidance raise was attributed to first-quarter performance and strength in the defense business. Investors should note that GAAP results carry roughly $0.27^c per share of acquisition accounting amortization, and that non-GAAP measures are used heavily in the release.

Pratt & Whitney commercial OE sales declined 1%^d on lower engine deliveries, and the filing's forward-looking statements continue to reference the GTF powder metal issue and the previously disclosed DOJ and SEC matters as risk factors. Note that the filing describes the press release but does not itself contain the full financial statements in the body; the figures above come from the attached Exhibit 99.

02—Key points

Key Highlights

Sales of $22.1B, up 9% reported and 10% organically; growth across Collins (+5%), Pratt & Whitney (+11%), and Raytheon (+10%).
Adjusted EPS of $1.78, up 21% year over year; GAAP diluted EPS of $1.51, up 32%.
Adjusted operating profit of $3.02B vs. $2.66B prior year; consolidated adjusted operating margin improved to about 13.7%.
Free cash flow of $1.3B, up 65%, aided by a $1.8B reduction in accounts receivable, though operating cash flow fell short of net income due to working capital outflows.
2026 adjusted sales outlook raised by $0.5B at the midpoint and adjusted EPS outlook raised by $0.10 to $6.70-$6.90; free cash flow guidance of $8.25-$8.75B confirmed.
Record-level backlog of $271B, including $162B commercial and $109B defense, providing multi-year revenue visibility.
Net debt reduced modestly: long-term debt plus current portion totaled about $37.2B at quarter-end vs. $37.7B at year-end 2025, with $500M repaid in the quarter.

03—Questions

Frequently Asked Questions

What drove the increase in RTX's full-year 2026 guidance?
Management raised adjusted sales guidance to $92.5-$93.5 billion and adjusted EPS guidance to $6.70-$6.90, citing the strong first-quarter performance and momentum in the defense business. The organic growth outlook of 5-6% and the free cash flow range of $8.25-$8.75 billion were maintained or confirmed.
How does the gap between GAAP and adjusted results look this quarter?
GAAP EPS was $1.51 versus adjusted EPS of $1.78, a $0.27 difference driven almost entirely by acquisition accounting adjustments (about $471 million pre-tax in operating profit). Restructuring and other one-time items were minimal this quarter, which is a change from the prior year's larger adjustments.
Is the free cash flow improvement sustainable?
Part of the improvement reflects a $1.8 billion decrease in accounts receivable, which is a timing benefit that may reverse. Offsetting working capital outflows included accounts payable and accrued liabilities (-$1.2B) and contract assets (-$1.0B), so investors should watch cash conversion through the year. Management nonetheless confirmed its full-year free cash flow guidance.
Which segments drove profitability, and were there any weak spots?
Raytheon delivered the strongest margin expansion, with adjusted operating margin up 150 basis points to 12.2% on Patriot and GEM-T volume and favorable mix. Pratt & Whitney adjusted operating profit rose 21%, led by commercial aftermarket growth of 19%. Collins adjusted operating profit grew only 6%, held back by commercial OE mix, divestitures, and tariffs, though its margin was roughly flat at 17.1%. Pratt & Whitney commercial OE sales fell 1% on lower engine deliveries.
What risks should investors keep in mind after this report?
The forward-looking statements highlight continued exposure to the Pratt & Whitney GTF powder metal issue, which requires accelerated engine removals and inspections, as well as the previously disclosed DOJ deferred prosecution agreements and SEC administrative order. Tariffs, supply-chain costs, and changes in U.S. and foreign defense spending are also cited as risk factors.

04—Continue

← View all 8-K filings