Why did RTX raise its full-year 2026 guidance?

Management cited strong first-half performance and the current backlog. The company raised adjusted sales guidance by $2.5B at the midpoint, increased organic growth expectations from 5-6% to 8-9%, and lifted adjusted EPS guidance by about $0.40 at the midpoint, reflecting broad demand across commercial aftermarket and defense.

How strong was the cash generation this quarter?

Operating cash flow was $3.5B and free cash flow was $2.9B, compared with $458M and negative $72M a year earlier. Much of the swing came from a $2.1B increase in accounts payable and accrued liabilities, so investors may want to see whether this timing benefit persists in the second half.

What is the difference between GAAP and adjusted earnings?

GAAP EPS of $1.57 excludes nothing, while adjusted EPS of $1.89 removes $0.27 of acquisition accounting amortization and $0.05 of restructuring and other items. The acquisition accounting adjustment is recurring, so investors should weigh GAAP results alongside the adjusted figures rather than treating the gap as one-time.

Does the Blue Canyon sale materially affect the business?

The $620M sale of Blue Canyon Technologies is modest relative to RTX's roughly $88B in annual sales. Its effect on guidance and segment results is not quantified in the filing, so the transaction is best viewed as portfolio pruning rather than a major change to the earnings outlook.

RTX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.

RTX Corporation reported strong second quarter 2026 results, with sales of $24.7 billion^a, up 14 percent year over year (16 percent organically), and adjusted EPS of $1.89, up 21 percent.

GAAP EPS was $1.57^b, up 29 percent. Growth was broad-based: Collins Aerospace organic sales rose 13 percent, Pratt & Whitney sales rose 16 percent on double-digit commercial aftermarket and military growth, and Raytheon sales rose 18 percent on air and land defense demand. Segment margins expanded across all three businesses.

Operating cash flow was $3.5 billion^c and free cash flow was $2.9 billion, and total backlog reached $289 billion, up 22 percent year over year. Management raised its full-year 2026 outlook. Adjusted sales are now guided to $95.0-$96.0 billion (from $92.5-$93.5 billion), organic growth to 8-9 percent (from 5-6 percent), adjusted EPS to $7.10-$7.25 (from $6.70-$6.90), and free cash flow to $8.50-$8.75 billion (narrowed from $8.25-$8.75 billion, with the floor raised).

The guidance raise is significant because it lifts the expected growth rate materially above the prior framework, not just the top line. Other items include an agreement to sell Raytheon's Blue Canyon Technologies unit for $620 million^d, a $69 million litigation charge excluded from adjusted results, and a $70 million investment gain also excluded.

Reported GAAP results remain burdened by roughly $474 million of quarterly acquisition accounting amortization. The filing furnishes the earnings press release under Item 2.02 and does not contain new risk disclosures beyond the standing forward-looking statements, which continue to reference the powder metal issue affecting the GTF fleet and prior DOJ and SEC matters.

02—Key points

Key Highlights

Q2 2026 sales of $24.7B, up 14% reported and 16% organic; all three segments grew double digits in reported sales.
Adjusted EPS of $1.89, up 21% year over year; GAAP diluted EPS of $1.57, up 29%.
Operating cash flow of $3.5B and free cash flow of $2.9B in Q2; first-half free cash flow of $4.2B versus $0.7B a year earlier.
Full-year 2026 outlook raised: adjusted sales to $95.0-$96.0B, organic growth to 8-9%, and adjusted EPS to $7.10-$7.25.
Backlog reached $289B ($170B commercial, $119B defense), up 22% year over year, supporting multi-year revenue visibility.
Pratt & Whitney adjusted segment margin improved to 8.3% from 8.0%, driven by aftermarket and military volume; Raytheon margin rose to 12.6%.
Agreement to sell Blue Canyon Technologies for $620M; adjusted results exclude a $69M litigation charge and a $70M investment gain.

03—Questions

Frequently Asked Questions

Why did RTX raise its full-year 2026 guidance?
Management cited strong first-half performance and the current backlog. The company raised adjusted sales guidance by $2.5B at the midpoint, increased organic growth expectations from 5-6% to 8-9%, and lifted adjusted EPS guidance by about $0.40 at the midpoint, reflecting broad demand across commercial aftermarket and defense.
How strong was the cash generation this quarter?
Operating cash flow was $3.5B and free cash flow was $2.9B, compared with $458M and negative $72M a year earlier. Much of the swing came from a $2.1B increase in accounts payable and accrued liabilities, so investors may want to see whether this timing benefit persists in the second half.
What is the difference between GAAP and adjusted earnings?
GAAP EPS of $1.57 excludes nothing, while adjusted EPS of $1.89 removes $0.27 of acquisition accounting amortization and $0.05 of restructuring and other items. The acquisition accounting adjustment is recurring, so investors should weigh GAAP results alongside the adjusted figures rather than treating the gap as one-time.
Does the Blue Canyon sale materially affect the business?
The $620M sale of Blue Canyon Technologies is modest relative to RTX's roughly $88B in annual sales. Its effect on guidance and segment results is not quantified in the filing, so the transaction is best viewed as portfolio pruning rather than a major change to the earnings outlook.

04—Continue

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