RTX Reports Q3 Sales of $25 Billion, Raises Full-Year Outlook on Robust Defense and Commercial Demand
Aerospace and defense giant RTX reported third-quarter 2026 financial results showing double-digit sales and earnings growth, prompting management to raise its full-year guidance across key financial metrics. Consolidated net sales for the quarter reached $25.0 billion, representing an 11 percent increase compared to the same period in the prior year and a 12 percent rise on an organic basis.
The Arlington, Virginia-based company posted GAAP earnings per share of $1.89, which included $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant or non-recurring items. Adjusted earnings per share climbed 33 percent year-over-year to $2.26, a figure that includes $0.25 from International Emergency Economic Powers Act cost recovery. Net income attributable to common shareowners stood at $2.6 billion, while adjusted net income reached $3.1 billion, up 34 percent from the prior year.
Chairman and CEO Chris Calio attributed the performance to disciplined execution across the company’s operations. Strong demand for RTX products generated more than $81 billion in new commercial and defense awards during the period, lifting the company’s total backlog to a record $340 billion. That backlog is evenly distributed, comprising $176 billion in commercial orders and $164 billion in defense commitments.
Driven by robust year-to-date performance, RTX raised its full-year 2026 outlook. The company now expects adjusted sales of $97.0 billion to $97.5 billion, up from its previous range of $95.0 billion to $96.0 billion. Organic sales growth is projected at 10 to 11 percent, compared to earlier expectations of 8 to 9 percent. Adjusted EPS guidance was revised upward to between $7.65 and $7.75, and free cash flow projections were increased to a range of $9.0 billion to $9.2 billion.
Performance varied across RTX’s primary operating segments during the third quarter. Collins Aerospace reported sales of $8.38 billion, up 10 percent on a reported basis and 12 percent organically, excluding divestitures. The division’s growth was underpinned by a 23 percent increase in commercial original equipment sales due to higher narrowbody and widebody platform volume, a 9 percent increase in commercial aftermarket sales driven by modifications and upgrades, and a 7 percent increase in defense sales. Collins posted an operating profit of $1.79 billion, compared to $1.26 billion in the third quarter of 2025.
Pratt & Whitney recorded sales of $9.23 billion, a 10 percent increase over the previous year. The gains were led by a 21 percent rise in commercial aftermarket volume—primarily driven by GTF engines—and a 2 percent increase in military sales. These gains were partially offset by a 5 percent decline in commercial original equipment sales stemming from engine mix. The segment reported operating profit of $608 million, down 19 percent year-over-year, weighed down by a $363 million pre-tax charge related to a customer bankruptcy. Adjusted operating profit for Pratt & Whitney reached $968 million, up 29 percent.
The Raytheon segment reported sales of $8.03 billion, marking a 14 percent increase compared to the prior year. Growth was propelled by higher volume across naval programs, land systems, and air defense platforms, including Patriot, Standard Missile, and Tomahawk systems. Raytheon’s operating profit rose 32 percent to $1.13 billion, supported by improved net productivity and favorable program mix, including benefits from an international contract modification.
During the quarter, RTX generated $2.9 billion in operating cash flow and invested $749 million in capital expenditures, resulting in free cash flow of $2.1 billion. The company ended the quarter with $9.17 billion in cash and cash equivalents against total debt obligations.
