01—Abstract
Summary
Summary of the 8-K filed October 20, 2026. Cited figures are marked; the original filing is the authoritative source.
RTX Corporation reported strong third quarter 2026 financial results, demonstrating significant top-line and bottom-line growth.
Sales reached $25.0 billiona, an 11% increase year-over-year and a 12% organic increase, driven by robust performance across all segments, particularly in commercial aerospace and defense. Adjusted Earnings Per Share (EPS) surged by 33% to $2.26, boosted by operational execution and a notable IEEPA cost recovery. Reflecting this positive momentum, RTX has raised its full-year 2026 financial outlook.
The company now expects adjusted sales between $97.0b - $97.5 billion, with organic sales growth projected at 10-11%. Adjusted EPS is anticipated to be in the range of $7.65 - $7.75, and free cash flow is now projected at $9.0 - $9.2 billion. The company's substantial backlog of $340 billion, comprising $176 billion in commercial and $164 billion in defense, provides a strong foundation for continued growth and execution.
02—Key points
Key Highlights
- Reported Q3 2026 sales of $25.0 billion, up 11% year-over-year and 12% organically.
- Achieved adjusted EPS of $2.26, a 33% increase compared to the prior year, including a $0.25 benefit from IEEPA cost recovery.
- Raised full-year 2026 outlook: Adjusted sales now expected at $97.0 - $97.5 billion, organic sales growth 10-11%, adjusted EPS $7.65 - $7.75, and free cash flow $9.0 - $9.2 billion.
- Company backlog stands at a record $340 billion, with $176 billion in commercial and $164 billion in defense.
- Collins Aerospace saw a 10% sales increase, driven by commercial OE and aftermarket, with adjusted operating profit up 50%.
- Pratt & Whitney reported a 10% sales increase, primarily from commercial aftermarket, and a 29% rise in adjusted operating profit.
- Raytheon delivered a 14% sales increase, led by naval and air defense systems, with adjusted operating profit up 32%.
03—Questions
Frequently Asked Questions
What were the main drivers of RTX's sales growth in Q3 2026?
RTX's sales growth in Q3 2026 was driven by strong operational performance and robust demand across its segments. Collins Aerospace benefited from higher commercial original equipment (OE) and aftermarket volumes. Pratt & Whitney saw strength in its commercial aftermarket, particularly from GTF engines. Raytheon's growth was fueled by increased volume in naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk.
How did the IEEPA cost recovery impact RTX's financial results?
The IEEPA cost recovery had a positive impact on RTX's Q3 2026 results. It contributed $0.25 to adjusted EPS and approximately $0.3 billion to operating cash flow. This recovery helped boost profitability and cash generation for the quarter.
Why did RTX raise its full-year 2026 financial guidance?
RTX raised its full-year 2026 guidance due to strong execution and operational focus observed in the third quarter, leading to double-digit organic sales growth across commercial aerospace and defense. The robust demand and record backlog further support the company's confidence in achieving higher financial targets for sales, earnings, and free cash flow.
What are the key components of RTX's $340 billion backlog?
RTX's record $340 billion backlog is comprised of $176 billion in commercial orders and $164 billion in defense orders. This significant backlog across both segments provides strong visibility and a solid foundation for future revenue and growth.
04—Continue