RTX Reports Strong Q3 2026 Results and Raises Full-Year Guidance

Executive Summary

On October 20, 2026, RTX Corporation filed a Form 8-K under Item 2.02 reporting financial results for the third quarter ended September 30, 2026. RTX delivered double-digit revenue and earnings growth driven by momentum in commercial aerospace and defense programs, culminating in an increase to its full-year 2026 guidance across sales, adjusted EPS, and free cash flow.

---

Key Q3 2026 Financial Metrics

• Revenue: Reported and adjusted net sales of $25.0 billion, representing an 11% increase year-over-year (12% organic growth).
• Net Income & Margins:
  • GAAP Net Income attributable to common shareowners of $2.58 billion (GAAP EPS of $1.89), up 35% YoY.
  • Adjusted Net Income of $3.09 billion (Adjusted EPS of $2.26), up 34% and 33% YoY, respectively, including $0.25 per share from International Emergency Economic Powers Act (IEEPA) cost recovery.
• Cash Flow:
  • Operating cash flow of $2.87 billion (including ~$0.3 billion of IEEPA recovery).
  • Capital expenditures of $0.75 billion, yielding Free Cash Flow of $2.12 billion.
• Order Backlog: Reached a record $340 billion, consisting of $176 billion in commercial aerospace and $164 billion in defense. Q3 bookings included multi-year undefinitized production contract awards for Tomahawk and AMRAAM missile systems.

---

Segment Performance Highlights

• Collins Aerospace:
  • Sales of $8.38 billion, up 10% YoY (+12% organic), fueled by a 23% surge in commercial original equipment (OE) volume across narrowbody and widebody platforms, alongside a 9% increase in commercial aftermarket and 7% in defense.
  • Adjusted operating profit rose 50% to $1.79 billion, with operating margin expanding 560 basis points to 21.3%, assisted by commercial volume drop-through, favorable mix, and ~$250 million from IEEPA recovery.
• Pratt & Whitney:
  • Reported sales reached $9.23 billion, up 10% YoY.

---

Updated Full-Year 2026 Outlook

RTX raised its operational targets across all core guidance metrics:

Metric	Updated FY 2026 Outlook	Previous FY 2026 Outlook
Adjusted Sales	$97.0 – $97.5 billion	$95.0 – $96.0 billion
Organic Sales Growth	10% – 11%	8% – 9%
Adjusted EPS	$7.65 – $7.75	$7.10 – $7.25
Free Cash Flow	$9.0 – $9.2 billion	$8.50 – $8.75 billion

---

Market & Strategic Implications

The double-digit organic growth and record $340 billion backlog reflect persistent aerospace aftermarket demand and elevated global defense procurement requirements. Upward revisions to full-year free cash flow and earnings guidance underscore operational efficiencies and output normalization across both commercial and defense programs.