We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX reported Q1 EPS of $1.78, beating estimates by 17% and rising 21% year over year.
RTX revenues grew 8.7% to $22.08B, driven by broad growth and a $271B backlog.
RTX raised 2026 sales and EPS outlook, citing strong defense demand and solid execution.
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
RTX’s Total Revenues
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%, supported by broad-based organic growth and a company backlog that stood at $271 billion.
Total costs and expenses increased nearly 7.2% year over year to $19.59 billion in the quarter. The company generated an adjusted operating profit of $2.56 billion compared with $2.04 billion in the prior-year quarter.
RTX posted an interest expense of $390 million compared with $443 million in the prior-year period.
Demand visibility remained a key theme. RTX ended the quarter with total backlog of $271 billion, including $162 billion tied to commercial programs and $109 billion tied to defense. Within Raytheon, backlog totaled $74 billion, and the segment’s first-quarter book-to-bill was 0.96, with a rolling 12-month book-to-bill of 1.48. The update reinforced the company’s view that durable end-market demand is supporting production ramps across the portfolio.
RTX’s Segmental Performance
Collins Aerospace: Sales in this segment totaled $7.6 billion, up 5% year over year. This improvement was driven by a 15% increase in commercial OE, a 7% increase in commercial aftermarket, and a 9% increase in defense.
Pratt & Whitney: This segment’s sales totaled $8.17 billion, reflecting an improvement of 11% from the year-ago quarter’s reported number. Sales growth was driven by a 19% increase in commercial aftermarket and a 7% increase in military, partially offset by a 1% decrease in commercial OE.
Raytheon: This segment recorded sales of $6.95 billion, up 10% year over year. This increase was driven by higher volume on land and air defense systems, including Patriot and GEM-T, as well as higher volume on naval munitions programs.
RTX’s Financial Update
RTX had cash and cash equivalents of $6.82 billion as of March 31, 2026, compared with $7.44 billion as of Dec. 31, 2025.
The long-term debt totaled $32.97 billion as of March 31, 2026, compared with $34.29 billion as of Dec. 31, 2025.
Operating cash flow totaled $1.86 billion, while capital expenditures were $0.55 billion, resulting in free cash flow of $1.31 billion.
The balance sheet profile remains important as RTX continues investing in capacity expansions and higher output across its aerospace and defense operations.
RTX Lifted 2026 Sales & Earnings Outlook
Following the first-quarter performance, RTX raised its full-year 2026 outlook for adjusted sales and adjusted earnings while maintaining its free cash flow expectations. The company now expects adjusted sales of $92.5-$93.5 billion, up from its prior range of $92.0-$93.0 billion. It continues to project organic sales growth of 5%-6% for the year.
RTX also increased its adjusted earnings outlook to $6.70-$6.90 per share from $6.60-$6.80 previously, while reaffirming free cash flow expectations of $8.25-$8.75 billion. The Zacks Consensus Estimate for 2026 EPS is pegged at $6.80, which is in line with the midpoint of the company’s newly guided range.
General Dynamics (GD - Free Report) is slated to report first-quarter results on April 29, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.71 per share, which indicates a year-over-year increase of 1.4%.
GD’s long-term (three to five years) earnings growth rate is 9.2%. The Zacks Consensus Estimate for first-quarter sales is pegged at $12.73 billion, which indicates a year-over-year increase of 4.2%.
Textron (TXT - Free Report) is slated to report first-quarter results on April 30, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share, indicating year-over-year growth of 3.1%.
TXT’s long-term earnings growth rate is 10.14%. The Zacks Consensus Estimate for first-quarter sales is pinned at $3.52 billion, indicating year-over-year growth of 6.5%.
L3Harris Technologies (LHX - Free Report) is slated to report first-quarter results on April 30, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.57 per share.
LHX’s long-term earnings growth rate is 17.17%. The Zacks Consensus Estimate for first-quarter sales is pinned at $5.42 billion, indicating year-over-year growth of 5.7%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
RTX Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
RTX’s Total Revenues
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%, supported by broad-based organic growth and a company backlog that stood at $271 billion.
RTX Corporation Price, Consensus and EPS Surprise
RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote
RTX’s Operational Performance
Total costs and expenses increased nearly 7.2% year over year to $19.59 billion in the quarter. The company generated an adjusted operating profit of $2.56 billion compared with $2.04 billion in the prior-year quarter.
RTX posted an interest expense of $390 million compared with $443 million in the prior-year period.
Demand visibility remained a key theme. RTX ended the quarter with total backlog of $271 billion, including $162 billion tied to commercial programs and $109 billion tied to defense. Within Raytheon, backlog totaled $74 billion, and the segment’s first-quarter book-to-bill was 0.96, with a rolling 12-month book-to-bill of 1.48. The update reinforced the company’s view that durable end-market demand is supporting production ramps across the portfolio.
RTX’s Segmental Performance
Collins Aerospace: Sales in this segment totaled $7.6 billion, up 5% year over year. This improvement was driven by a 15% increase in commercial OE, a 7% increase in commercial aftermarket, and a 9% increase in defense.
Pratt & Whitney: This segment’s sales totaled $8.17 billion, reflecting an improvement of 11% from the year-ago quarter’s reported number. Sales growth was driven by a 19% increase in commercial aftermarket and a 7% increase in military, partially offset by a 1% decrease in commercial OE.
Raytheon: This segment recorded sales of $6.95 billion, up 10% year over year. This increase was driven by higher volume on land and air defense systems, including Patriot and GEM-T, as well as higher volume on naval munitions programs.
RTX’s Financial Update
RTX had cash and cash equivalents of $6.82 billion as of March 31, 2026, compared with $7.44 billion as of Dec. 31, 2025.
The long-term debt totaled $32.97 billion as of March 31, 2026, compared with $34.29 billion as of Dec. 31, 2025.
Operating cash flow totaled $1.86 billion, while capital expenditures were $0.55 billion, resulting in free cash flow of $1.31 billion.
The balance sheet profile remains important as RTX continues investing in capacity expansions and higher output across its aerospace and defense operations.
RTX Lifted 2026 Sales & Earnings Outlook
Following the first-quarter performance, RTX raised its full-year 2026 outlook for adjusted sales and adjusted earnings while maintaining its free cash flow expectations. The company now expects adjusted sales of $92.5-$93.5 billion, up from its prior range of $92.0-$93.0 billion. It continues to project organic sales growth of 5%-6% for the year.
RTX also increased its adjusted earnings outlook to $6.70-$6.90 per share from $6.60-$6.80 previously, while reaffirming free cash flow expectations of $8.25-$8.75 billion. The Zacks Consensus Estimate for 2026 EPS is pegged at $6.80, which is in line with the midpoint of the company’s newly guided range.
RTX’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
General Dynamics (GD - Free Report) is slated to report first-quarter results on April 29, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.71 per share, which indicates a year-over-year increase of 1.4%.
GD’s long-term (three to five years) earnings growth rate is 9.2%. The Zacks Consensus Estimate for first-quarter sales is pegged at $12.73 billion, which indicates a year-over-year increase of 4.2%.
Textron (TXT - Free Report) is slated to report first-quarter results on April 30, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share, indicating year-over-year growth of 3.1%.
TXT’s long-term earnings growth rate is 10.14%. The Zacks Consensus Estimate for first-quarter sales is pinned at $3.52 billion, indicating year-over-year growth of 6.5%.
L3Harris Technologies (LHX - Free Report) is slated to report first-quarter results on April 30, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.57 per share.
LHX’s long-term earnings growth rate is 17.17%. The Zacks Consensus Estimate for first-quarter sales is pinned at $5.42 billion, indicating year-over-year growth of 5.7%.