RTX raised its 2026 outlook for sales, earnings, and free cash flow on July 23 after the aerospace and defense giant reported second-quarter results that beat Wall Street expectations, with sales rising 14 percent to $24.7 billion and adjusted earnings per share climbing 21 percent to $1.89.
The company now expects adjusted full-year sales of $95.0 billion to $96.0 billion, up from its prior guidance of $92.5 billion to $93.5 billion. Adjusted EPS guidance was raised to $7.10 to $7.25 from $6.70 to $6.90, while free cash flow guidance increased to $8.50 billion to $8.75 billion from $8.25 billion to $8.75 billion.
RTX’s performance was driven by strong demand across its three main segments. Collins Aerospace saw sales climb 8 percent, with a 26 percent jump in commercial original equipment and a 10 percent increase in commercial aftermarket. Pratt & Whitney sales rose 16 percent, fueled by a 25 percent surge in commercial aftermarket and a 23 percent increase in military volumes. The Raytheon defense segment posted 18 percent sales growth, led by higher volumes on land and air defense systems, including Patriot missiles, Standard Missile, and AMRAAM programs.
RTX Chairman and CEO Chris Calio attributed the strong quarter to robust global demand. “Demand remains robust, and our backlog is up 22 percent year over year,” Calio said in the earnings release. The company’s total backlog reached a record $289 billion, including $170 billion in commercial work and $119 billion in defense contracts, positioning RTX to sustain growth through 2027 and beyond.
The defense sector has benefited from increased global military spending amid geopolitical tensions. The WSJ reported that RTX and fellow defense contractor Lockheed Martin both raised guidance on the same day, citing double-digit sales increases across commercial aerospace and defense segments as global spending has climbed amid conflicts in Ukraine and the Middle East. Both companies have pledged to meet White House demands to triple or quadruple their output of high-tech missiles in coming years.
RTX’s organic sales growth—which strips out currency and acquisition impacts—accelerated to 16 percent in Q2, up from earlier guidance of 5 to 6 percent for the full year. The company now projects organic sales growth of 8 to 9 percent for 2026. Operating cash flow reached $3.5 billion in the quarter, with free cash flow of $2.9 billion, reflecting the company’s ability to convert strong sales into cash despite significant capital spending on capacity expansion.
The guidance raise reflects RTX’s confidence in executing its record backlog while expanding manufacturing capacity to meet sustained defense and commercial aerospace demand. All three segments posted margin expansion, signaling improved operational efficiency alongside revenue growth. The company also announced it reached an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million, a move that allows RTX to focus capital on higher-margin core defense and aerospace operations.
Sources
- RTX (official press release) — Q2 2026 earnings results, sales, EPS, backlog, and full-year guidance raise
- Wall Street Journal — RTX and Lockheed Martin raised guidance on robust defense demand and higher backlog; global spending climbed amid Ukraine and Middle East conflicts
- Seeking Alpha — RTX raised outlook after Q2 earnings beat on aerospace and defense demand
- GuruFocus — RTX exceeded Q2 expectations and raised annual forecast
