Key Highlights
- RTX delivered Q1 adjusted EPS of $1.78, surpassing the Street’s $1.51 estimate by $0.27
- Quarterly revenue reached $22.1 billion, representing a 9% year-over-year increase and exceeding forecasts
- Free cash flow surged 65% compared to last year, reaching $1.3 billion
- Company elevated full-year adjusted EPS outlook to $6.70–$6.90 range
- Raytheon division expanded 10% to $6.9 billion driven by robust defense systems demand
RTX Corporation delivered first-quarter 2026 results that sailed past Wall Street’s projections, propelling shares higher by over 3% during pre-market hours.
The aerospace and defense giant reported adjusted earnings per share of $1.78, decisively beating the analyst consensus forecast of $1.51 by $0.27. Quarterly revenue totaled $22.1 billion, marking a 9% increase versus the year-ago period and exceeding the $21.44 billion Wall Street estimate.
Adjusted net income expanded 22% to reach $2.4 billion. Meanwhile, the company generated $1.3 billion in free cash flow during the quarter, representing a substantial 65% year-over-year jump — a figure that typically catches investor attention.
CEO Chris Calio highlighted strong operational performance 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 operating divisions — Collins Aerospace, Pratt & Whitney, and Raytheon — delivered revenue growth during the period.
Military Spending Fuels Raytheon Growth
Raytheon’s quarterly sales expanded 10% to $6.95 billion, powered by increased volume in land-based and air defense platforms. The Department of Defense continues prioritizing weapons inventory replenishment following significant drawdowns linked to the ongoing Russia-Ukraine war and Israel’s Gaza operations.
Last month, RTX secured a substantial $3.7 billion contract to manufacture Patriot GEM-T interceptor missiles destined for Ukraine. Such orders highlight the robust demand environment surrounding Raytheon’s portfolio.
Washington has allocated billions toward artillery shells, munitions, and anti-armor systems since Russia launched its 2022 invasion of Ukraine. Defense industry players stand to capitalize as the Pentagon accelerates efforts to restore depleted arsenals.
Aviation Aftermarket Strength Continues
Pratt & Whitney recorded an 11% revenue increase to $8.2 billion, with the commercial aftermarket segment jumping 19%. Airlines continue operating older fleets for extended periods amid persistent delivery bottlenecks and supply chain constraints, creating sustained maintenance demand — translating to stronger P&W revenues.
This performance comes amid strained relations with Airbus, which claimed in early 2026 that Pratt & Whitney failed to meet engine delivery commitments while redirecting units to maintenance facilities. According to March reporting by Reuters, Airbus is pursuing possible financial compensation.
Collins Aerospace achieved 5% sales growth to $7.6 billion, with commercial original equipment up 15% and commercial aftermarket advancing 7%.
RTX raised its full-year 2026 adjusted EPS guidance range to $6.70–$6.90, up from the previous $6.60–$6.80 outlook. The revised midpoint of $6.80 remains marginally below the current analyst consensus of $6.84.
The company also elevated its full-year revenue guidance to $92.5–$93.5 billion from the prior $92.0–$93.0 billion range. The new midpoint of $93.0 billion sits just beneath the Street’s $93.5 billion consensus expectation.
RTX stock traded 3.35% higher in pre-market activity following the quarterly disclosure.
