Key Highlights
- RTX delivered Q1 adjusted earnings per share of $1.78, surpassing the Street’s $1.51 estimate by $0.27
- Quarterly revenue reached $22.1 billion, marking a 9% year-over-year increase and exceeding projections
- Free cash flow surged 65% compared to the prior year, reaching $1.3 billion
- Annual adjusted EPS outlook elevated to a range of $6.70–$6.90
- Raytheon division revenues advanced 10% to $6.9 billion, fueled by robust land and air defense orders
RTX Corporation exceeded analyst projections for its first quarter of 2026, propelling shares upward by more than 3% during pre-market hours.
The aerospace and defense giant delivered adjusted earnings of $1.78 per share, outpacing the Wall Street consensus target of $1.51 by a substantial $0.27 margin. Quarterly revenues totaled $22.1 billion, representing a 9% increase versus the comparable quarter last year and surpassing the anticipated $21.44 billion figure.
Adjusted net earnings expanded 22% to reach $2.4 billion. The company generated $1.3 billion in free cash flow during the period, marking a 65% year-over-year leap — a metric closely watched by investors.
Chief Executive Chris Calio highlighted operational excellence and backlog conversion. “RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments,” he stated.
Each of the company’s three principal divisions — Collins Aerospace, Pratt & Whitney, and Raytheon — reported positive growth trajectories.
Raytheon Gains Momentum on Defense Spending
Raytheon’s quarterly sales expanded 10% to $6.95 billion, propelled by increased production of land and air defense platforms. The Department of Defense has prioritized restocking weapons arsenals that were depleted due to military support related to the Ukraine-Russia conflict and Israel’s Gaza operations.
This past April, RTX secured a substantial $3.7 billion contract for delivering Patriot GEM-T interceptor missiles to Ukraine. Such agreements highlight the strong demand climate benefiting Raytheon’s operations.
Since Russia’s 2022 invasion of Ukraine, U.S. spending on munitions, artillery rounds, and anti-armor systems has reached billions. Defense industry players are positioned favorably as Pentagon procurement efforts accelerate to rebuild critical stockpiles.
Commercial Aftermarket Delivers Strong Performance
Pratt & Whitney revenues increased 11% to $8.2 billion, with commercial aftermarket sales jumping 19%. Carriers are extending aircraft lifecycles amid ongoing delivery bottlenecks and supply chain constraints, translating to heightened maintenance activity — and corresponding revenue streams for P&W.
This performance persists despite strained relations with Airbus, which claimed in early 2026 that Pratt & Whitney overstated engine delivery commitments while redirecting units to maintenance facilities. Airbus has indicated it may pursue compensation, based on Reuters coverage from March.
Collins Aerospace reported a 5% revenue gain to $7.6 billion, with commercial original equipment climbing 15% and commercial aftermarket advancing 7%.
RTX elevated its full-year 2026 adjusted earnings per share forecast to a range of $6.70–$6.90, up from the previous $6.60–$6.80 band. The $6.80 midpoint trails narrowly behind the analyst consensus of $6.84.
Annual revenue projections were upgraded to $92.5–$93.5 billion from the earlier $92.0–$93.0 billion range. The $93.0 billion midpoint stands marginally below the $93.5 billion Street consensus.
RTX shares advanced 3.35% in pre-market activity after the quarterly report.
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