Key Highlights
- RTX shares advance 0.28% to $192.65 following robust third-quarter financial results.
- Quarterly revenue hits $25 billion as commercial aerospace and defense operations strengthen.
- Order backlog reaches unprecedented $340 billion, prompting upgraded 2026 financial outlook.
- Collins Aerospace operating profit jumps 50% driven by commercial aircraft production.
- Raytheon division experiences 14% sales increase while overall free cash flow drops 47%.
Shares of RTX Corporation (RTX) experienced a 0.28% uptick to $192.65 following the release of impressive third-quarter financial results that showcased strength across its aerospace and defense portfolio. The company delivered adjusted earnings growth of 33% alongside $25 billion in quarterly revenue, prompting management to raise full-year expectations as its order backlog reached an all-time high of $340 billion.
RTX Shares Close Higher After Quarterly Earnings Beat
The stock finished the session $0.54 higher despite earlier volatility during intraday trading. Late-session buying interest pushed shares into positive territory following disclosure of the quarterly financial performance. The upward movement reflected investor confidence in improved profitability and robust demand across both commercial aviation and defense segments.
RTX delivered net income of $2.58 billion for the quarter, representing a 35% improvement over the prior-year figure of $1.92 billion. Earnings per share on a GAAP basis climbed 34% to $1.89 compared with $1.41 in the year-earlier period. On an adjusted basis, earnings per share rose to $2.26 from $1.70.
The company’s adjusted net income totaled $3.09 billion, marking a 34% year-over-year increase from $2.31 billion in 2025. Within the adjusted earnings figure, RTX recorded $0.25 per share related to IEEPA cost recovery. Increases in tax expenses and reductions in pension income partially offset operational improvements.
Record Backlog of $340 Billion Supports Revenue Growth
Quarterly sales reached $24.97 billion versus $22.48 billion in the same period last year. The company posted 11% reported revenue growth and 12% organic growth. Strong performance stemmed from heightened commercial aviation activity and defense spending, while new contract awards exceeded $81 billion throughout the reporting period.
The influx of new orders elevated RTX’s total backlog to an unprecedented $340 billion. Within that figure, commercial aerospace contracts account for $176 billion and defense-related orders comprise $164 billion. The company also announced multi-year production agreements for Tomahawk and AMRAAM missile systems during the third quarter of 2026.
Management increased its 2026 adjusted sales projection to $97.0 billion–$97.5 billion, up from the previous range of $95.0 billion–$96.0 billion. The company also elevated adjusted earnings guidance to $7.65–$7.75 per share and organic growth expectations to 10%–11%. Additionally, RTX raised its annual free cash flow outlook to $9.0 billion–$9.2 billion.
Business Segment Performance Highlights Broad Strength
Collins Aerospace generated $8.38 billion in quarterly sales, reflecting 10% year-over-year growth. The division’s adjusted operating profit surged 50% to $1.79 billion as commercial aircraft production ramped up. Original equipment revenue jumped 23%, while commercial aftermarket sales grew 9% compared with the prior-year quarter.
Pratt & Whitney posted $9.23 billion in sales, delivering 10% growth year-over-year. The unit’s adjusted operating profit increased 29% to $968 million, supported by robust commercial engine aftermarket activity. A $363 million charge related to a customer bankruptcy, however, resulted in a 19% decline in reported operating profit.
Raytheon delivered $8.03 billion in sales, up 14%, fueled by increasing demand for missile systems and air defense products. Adjusted operating profit rose 32% to $1.13 billion, benefiting from operational efficiency gains. Despite strong earnings performance, RTX reported quarterly free cash flow of $2.12 billion, down 47% from $4.03 billion in the prior-year period.
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