RTX Corp (RTX) Earnings History

RTX Corp - Q1 2026 EarningsBeat

Filed at: Apr 21, 2026, 7:08 AM EDT|Read from source

EXECUTIVE SUMMARY

RTX reported a strong start to 2026 with double-digit organic sales growth and significant adjusted EPS growth across all segments, driven by effective execution and a robust backlog. The company raised its full-year outlook for adjusted sales and adjusted EPS, reflecting confidence in its defense business and ability to increase output.

POSITIVE HIGHLIGHTS

  • •

    Consolidated sales of $22.1 billion, up 9 percent versus prior year and 10 percent organically.

    positive
  • •

    Adjusted EPS of $1.78, up 21 percent versus prior year.

    positive
  • •

    Operating cash flow of $1.9 billion, up 42% YoY, and free cash flow of $1.3 billion, up 65% YoY.

    positive
  • •

    Full year 2026 outlook raised for adjusted sales and adjusted EPS.

    positive
  • •

    Collins Aerospace reported adjusted sales up 5% YoY, driven by commercial OE and aftermarket, and defense sales up 9%.

    positive
  • •

    Pratt & Whitney reported adjusted sales up 11% YoY, driven by commercial aftermarket and military sales.

    positive
  • •

    Raytheon reported adjusted sales up 10% YoY, driven by higher volume in land and air defense systems and naval munitions.

    positive

CONCERNS & RISKS

  • •

    Inventory levels increased to $14.15 billion from $13.36 billion at the end of the prior year.

    attention
  • •

    GAAP EPS of $1.51 included $0.27 of acquisition accounting adjustments, impacting reported earnings.

    attention
  • •

    Collins Aerospace adjusted operating profit growth was 6%, significantly lower than reported operating profit growth of 20%, due to unfavorable commercial OE mix and impact of divestitures.

    attention
  • •

    Pratt & Whitney's adjusted operating profit growth of 21% was partially offset by higher operational costs, including tariffs, and higher SG&A expense.

    attention
  • •

    Raytheon's reported operating profit was up 24% YoY, but adjusted operating profit was up 25% YoY, indicating some non-recurring items influencing reported figures.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$22.08B
+9.0%
Prior year: $20.31B
Net Income
Quarterly
$2.06B
+34.0%
Prior year: $1.53B
EPS (Diluted)
Quarterly
$1.51
+32.5%
Prior year: $1.14
Operating Income
Quarterly
$2.56B
+25.6%
Prior year: $2.04B
EPS (Basic)
Quarterly
$1.53
+33.0%
Prior year: $1.15

MARGIN ANALYSIS

Operating Margin
Current Quarter
11.6%
Prior Year
10.0%
YoY Change
+160 bps
Net Margin
Current Quarter
9.3%
Prior Year
7.6%
YoY Change
+177 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Collins Aerospace
0.0%
N/A
Pratt & Whitney
0.0%
N/A
Raytheon
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Collins Aerospace
N/A———
Pratt & Whitney
N/A———
Raytheon
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

Adjusted Sales
$92500000.0B—$93500000.0B
Mid-point: $93000000.0B
"Raised from prior outlook"
Organic Sales Growth
$0.1M—$0.1M
Mid-point: $0.1M
"Range provided"
Adjusted EPS
$6.70—$6.90
Mid-point: $6.80
"Raised from prior outlook"
Free Cash Flow
8,250,000,000—8,750,000,000
Mid-point: 8,500,000,000
"Confirmed outlook"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-21
Tone
N/A
Hedge density
N/A
Deflection rate
N/A

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Acquisition accounting adjustments impacting GAAP EPS
Included in GAAP EPS calculation.
$0.27 per share
Q1 2026
Acquisition accounting adjustments impacting GAAP Net Income
Included in GAAP Net Income calculation.
+$400M
Total Impact
+$400M$-0.27 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments, driven by our continued focus on execution and delivering our backlog.

— RTX Corp, Q1 2026 2026 Earnings Call

Our differentiated products across RTX are well positioned to support our customers’ needs and we’re making significant investments to increase output and accelerate the fielding of new capabilities.

— RTX Corp, Q1 2026 2026 Earnings Call

Given our first quarter performance and the strength we’re seeing in our defense business, we are increasing adjusted sales and EPS in our full year outlook.

— RTX Corp, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Backlog
271000.0M
dollars
Backlog Commercial
162000.0M
dollars
Backlog Defense
109000.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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