RTX backlog reaches $340 billion as company raises sales and profit forecasts
Key Facts
RTX reported a backlog of $340 billion in third-quarter results released on October 20, 2026, while raising its full-year sales and adjusted profit forecasts. The backlog comprised $176 billion in commercial orders and $164 billion in defense orders, according to the company's statement, with both businesses posting increases from the previous quarter. Total backlog stood at $289 billion at the end of the second quarter, making defense the biggest driver of the third-quarter increase. Defense backlog at that time was $119 billion, compared with commercial backlog of $170 billion. Chief Executive Chris Calio said in the earnings announcement that the company secured "more than $81 billion in new commercial and defense orders and contracts" during the quarter.
Third-quarter adjusted earnings per share were $2.26, according to the company's statement, beating analysts' average estimate of $1.78, according to London Stock Exchange Group data cited by Reuters. Adjusted earnings included a contribution of $0.25 per share from the recovery of costs related to the International Emergency Economic Powers Act. Sales totaled $24.97 billion during the quarter, according to figures Reuters reported from the quarterly results. That exceeded sales estimates of $24.08 billion, putting both earnings and sales above expectations. RTX shares rose 3% before the opening of trading on October 20, following the earnings announcement and the increase in annual forecasts, according to Reuters.
In commercial aviation, Collins Aerospace's commercial original equipment sales grew 23% from the year-earlier period, according to Reuters. Pratt & Whitney revenue rose 10%, supported by growth in the unit's commercial aftermarket business. Sales in that business increased 21% in the third quarter from the year-earlier period, making it one of the revenue growth drivers cited by the news agency. Management said on the earnings call that the aftermarket business benefited from increased maintenance, repair and overhaul work, particularly for geared turbofan engines. Management also said new commercial orders exceeded $22 billion during the quarter, alongside the growth in equipment and services sales.
In defense, programs supporting Raytheon's sales growth included Patriot systems and Standard Missile and Tomahawk missiles, according to Reuters. The company announced a multiyear contract in September 2026 to produce AMRAAM missiles, worth up to $20.7 billion. The contract has a base period of 5 years, according to RTX's statement on the agreement. It also includes two option years, under the contract structure whose maximum value the company announced in September. The agreement to increase production of these missiles supports annual output of at least 1,900 missiles, according to the company.
The October announcement marks the third increase in sales and adjusted profit forecasts for 2026, following revisions alongside first- and second-quarter results. The company had maintained its free cash flow forecast when announcing first-quarter results, despite raising its adjusted sales and earnings per share forecasts at the time. In the latest update, RTX raised its annual adjusted sales forecast to $97.0–97.5 billion, compared with the $95.0–96.0 billion range announced with second-quarter results. It also raised its annual adjusted earnings per share forecast to $7.65–7.75, according to the third-quarter earnings statement. The previous earnings forecast range, disclosed in the second-quarter earnings filing with the U.S. Securities and Exchange Commission, was between $7.10 and $7.25 per share.
For 2026, the update also included an increase in the annual free cash flow forecast to $9.0–9.2 billion, according to the company's statement. RTX had forecast free cash flow of between $8.50 billion and $8.75 billion in estimates announced with second-quarter results. The company also raised its annual organic sales growth forecast to 10–11% in its October earnings update. That compares with a previous organic growth range of 8–9%, according to the comparison provided in the company's statement. The annual update therefore includes higher forecasts for adjusted sales and earnings and free cash flow, alongside faster expected organic growth for 2026.