RTX Raises 2026 Outlook After Strong Q2, Backlog Hits $289 Billion

RTX raised its full-year 2026 outlook for sales, profit and cash flow after reporting double-digit second-quarter growth across its commercial aerospace and defense businesses, according to a company press release issued July 23 and furnished in an 8-K.

The aerospace and defense company reported second-quarter sales of $24.708 billion, up 14% from a year earlier, or 16% organically. Net income attributable to common shareowners was $2.139 billion. GAAP diluted earnings per share were $1.57, while adjusted diluted EPS, a company-defined non-GAAP measure, rose 21% to $1.89. Adjusted net income increased 22% to $2.579 billion. Operating cash flow was $3.547 billion in the quarter, capital expenditures were about $0.7 billion, and free cash flow was $2.878 billion.

RTX said it now expects full-year 2026 adjusted sales of $95.0 billion to $96.0 billion, up from prior guidance of $92.5 billion to $93.5 billion. It raised its forecast for organic sales growth to 8% to 9%, from 5% to 6%. The company also lifted its outlook for adjusted EPS, another company-defined non-GAAP measure, to $7.10 to $7.25 from $6.70 to $6.90. It now expects free cash flow of $8.50 billion to $8.75 billion, compared with its earlier range of $8.25 billion to $8.75 billion.

The stronger outlook came as RTX’s backlog climbed to $289 billion at the end of the quarter, including $170 billion tied to commercial business and $119 billion tied to defense. That was up from $271 billion at the end of the first quarter, reinforcing management’s view that demand remains strong. All three operating segments posted sales growth in the quarter: Collins Aerospace rose 8% to $8.210 billion, Pratt & Whitney increased 16% to $8.889 billion, and Raytheon climbed 18% to $8.269 billion.

“RTX delivered very strong second quarter results with 16 percent organic sales growth, including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow. Demand remains robust, and our backlog is up 22 percent year over year,” Chris Calio, RTX chairman and CEO, said in the release.

RTX was created through the 2020 merger of United Technologies and Raytheon and now operates through Collins Aerospace, Pratt & Whitney and Raytheon. The company also said it had reached an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million, a deal previously announced in June. Shares were trading higher intraday after the results; a market snapshot showed the stock around $207.45 at 13:34 UTC.