Key Takeaways
- Second-quarter earnings per share reached $1.89, surpassing analyst expectations of $1.66 by $0.23
- Quarterly revenue totaled $24.7 billion, reflecting 16% organic growth and exceeding the $22.88 billion forecast
- Annual EPS outlook upgraded to $7.10–$7.25 range, compared to previous guidance of $6.70–$6.90
- Full-year revenue projection increased to $95–$96 billion; organic sales growth forecast raised to 8–9%
- Order backlog expanded 22% to reach $289 billion, with commercial contracts accounting for $170 billion
Shares of RTX Corp surged 5.8% during premarket hours Thursday following the aerospace and defense contractor’s impressive second-quarter performance that exceeded expectations on both the top and bottom lines, accompanied by an upward revision to annual projections.
By 6:21 a.m. ET, the stock had climbed 5.8%.
The company delivered adjusted earnings of $1.89 per share for the second quarter, handily beating the Street’s $1.66 projection by $0.23. Top-line performance was equally robust, with revenue reaching $24.7 billion—a 14.5% year-over-year gain that outpaced the analyst consensus of $22.88 billion by $1.82 billion.
During the quarter, the company generated $2.9 billion in free cash flow, while operating cash flow totaled $3.5 billion.
Chief Executive Chris Calio noted that the corporation is “exceptionally well positioned to drive continued growth” as it executes against its substantial backlog, ramps up production capacity, and delivers innovative technologies to its customer base.
Annual Outlook Receives Upward Revision
RTX increased its fiscal 2026 earnings per share guidance to a range of $7.10–$7.25, representing an upgrade from the earlier $6.70–$6.90 forecast, and topping the analyst consensus estimate of $6.92.
The company also elevated its revenue outlook to $95–$96 billion, up from the prior $92.5–$93.5 billion range, compared against Wall Street’s expectation of $94.1 billion.
Management now anticipates organic sales growth of 8–9%, a significant improvement over the previously guided 5–6% range.
Additionally, free cash flow projections saw a modest increase to $8.50–$8.75 billion from the earlier $8.25–$8.75 billion guidance.
Record Backlog Reaches $289 Billion
RTX’s total order backlog surged 22% quarter-over-quarter to $289 billion. This impressive figure comprises $170 billion from commercial aerospace contracts and $119 billion from defense programs.
This substantial backlog represents a significant visibility advantage—providing years of contracted revenue ahead.
From a valuation perspective, RTX currently commands a price-to-earnings multiple of 36.56, notably elevated compared to its long-term median of 27.4. According to GuruFocus metrics, the stock appears significantly overvalued based on their proprietary GF Value methodology.
Company insiders have divested roughly $43.86 million worth of shares over the trailing twelve months, while no insider purchases were registered during this timeframe.
The company’s GF Score registers at 84 out of 100, featuring a Growth Rank of 8/10 and a Profitability Rank of 7/10. RTX’s current market capitalization stands at approximately $262.44 billion.
With a Piotroski F-Score of 8, the company demonstrates solid financial health as it moves through the remainder of 2026.
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