RTX raises 2026 sales outlook to $97.0–97.5 billion
Key Facts
RTX raised its 2026 adjusted sales forecast to $97.0–97.5 billion, according to its third-quarter earnings statement released on October 20, as its quarterly results beat analysts' estimates. The company had set its annual sales range at $95.0–96.0 billion in its July outlook, released alongside second-quarter results. The revision also covered annual adjusted earnings per share, which the company now expects to reach $7.65–7.75, according to the new earnings statement. That compares with a previous adjusted earnings forecast of $7.10–7.25 per share, announced in July for the same year. The outlook increase came as the total order backlog reached a record $340 billion at the end of the third quarter, according to RTX.
Third-quarter adjusted earnings per share were $2.26, compared with analysts' average forecast of $1.78, according to London Stock Exchange Group data cited by Reuters. Quarterly sales totaled $24.97 billion, exceeding expectations of $24.08 billion, the news agency reported. The company reported organic sales growth of 12% from the same quarter a year earlier in the results underpinning its higher annual outlook. Earnings per share under U.S. generally accepted accounting principles were $1.89, according to RTX's statement, compared with the earnings it reported on an adjusted basis. Net income attributable to common shareholders was about $2.6 billion in the third quarter of 2026, according to the same statement.
Quarterly adjusted earnings per share included a $0.25 contribution from IEEPA cost recoveries, according to the results details released by RTX. The recoveries also affected third-quarter operating cash flow, which included about $0.3 billion in recovered costs, the company said. At the segment level, Collins' adjusted operating profit benefited from about $250 million in the same cost recoveries during the period. Pratt & Whitney's adjusted operating profit also benefited from about $160 million in these cost recoveries, according to the quarterly earnings statement. Pratt & Whitney's total adjusted operating profit was $968 million in the third quarter of 2026, according to the figures the company reported for the segment.
In commercial aviation, Collins' commercial aftermarket sales grew 9% year on year in the third quarter, according to RTX. On the defense side, Raytheon's productivity gains included benefits of about $85 million, which the company attributed to an international contract modification and a favorable settlement related to an industrial offset obligation. As part of efforts to expand Tomahawk production, management had emphasized investment in workforce, technology, supply chain and facilities in its August 17 announcement. Management said in that announcement: "We are making significant investments in our workforce, technology, supply chain and facilities to substantially increase production capacity and meet rising demand." The company linked these investments to expanding Tomahawk missile production and meeting demand as part of its announced plans to increase production capacity.
RTX raised its 2026 free cash flow forecast to a range of $9.0–9.2 billion, according to its third-quarter earnings statement. Its previous forecast for this measure ranged from $8.50–8.75 billion, according to the second-quarter earnings announcement released in July. The annual outlook revision thus covered cash flow alongside adjusted sales and adjusted earnings per share, whose ranges the company raised in the new announcement. Third-quarter capital expenditure was about $0.7 billion, according to the company's statement for the period. The quarterly spending came as management proceeded with its announced investments in workforce, technology, supply chain and facilities to expand Tomahawk production.
RTX shares rose 3% in premarket trading on the day of the earnings announcement, according to Reuters. The stock's gains on October 20, 2026, coincided with the release of quarterly results and an increase in the financial outlook for the year. The announcement brought shareholders earnings and sales that exceeded estimates, alongside an order backlog that reached the record level reported by the company. It also included higher target ranges for adjusted sales, adjusted earnings per share and free cash flow through the end of the year. RTX scheduled its earnings call for October 20, 2026, at 8:30 a.m. Eastern Time.