Key Highlights
- First quarter adjusted earnings per share reached $1.78, exceeding Wall Street’s $1.51 forecast by $0.27
- Quarterly revenue climbed to $22.1 billion, marking a 9% annual increase and surpassing projections
- Free cash generation surged 65% compared to last year, reaching $1.3 billion
- Company elevates full-year adjusted earnings outlook to a range of $6.70–$6.90 per share
- Raytheon division experienced 10% revenue growth, reaching $6.9 billion, fueled by robust land and air defense orders
RTX Corporation exceeded analyst forecasts for the first quarter of 2026, propelling shares upward by over 3% during pre-market hours.
The aerospace and defense conglomerate delivered adjusted earnings of $1.78 per share, significantly outperforming the Street’s $1.51 consensus estimate. Quarterly sales totaled $22.1 billion, representing a 9% year-over-year expansion and exceeding the anticipated $21.44 billion figure.
Adjusted profit climbed 22% to reach $2.4 billion for the period. The company generated $1.3 billion in free cash flow during the quarter, representing a remarkable 65% increase from the prior-year period — a metric that typically catches investor attention.
Chief Executive Chris Calio attributed the performance to strong execution and backlog conversion. “RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments,” Calio stated.
Each of the company’s three core divisions — Collins Aerospace, Pratt & Whitney, and Raytheon — delivered positive growth trajectories.
Raytheon Benefits From Heightened Defense Spending
The Raytheon segment recorded 10% revenue expansion to $6.95 billion during the first quarter, propelled by increased production volumes for land-based and air defense platforms. The Department of Defense has prioritized weapons inventory replenishment following drawdowns associated with the ongoing Russia-Ukraine conflict and Israel’s Gaza operations.
This past April, RTX secured a substantial $3.7 billion agreement to deliver Patriot GEM-T interceptor missiles destined for Ukraine. Such contracts highlight the favorable operating environment for Raytheon’s defense portfolio.
Since Russia’s 2022 invasion, the United States has allocated billions toward artillery shells, ammunition, and anti-armor systems. Defense prime contractors stand to gain as the Pentagon executes its stockpile restoration strategy.
Commercial Aviation Aftermarket Provides Strong Tailwind
Pratt & Whitney’s revenue advanced 11% to $8.2 billion, with the commercial aftermarket segment experiencing particularly robust 19% growth. Airlines continue operating older aircraft for extended periods due to ongoing delivery bottlenecks and persistent supply-chain constraints, translating into increased maintenance demand — and higher P&W revenues.
This performance materializes despite simmering disputes with Airbus, which claimed earlier in 2026 that Pratt & Whitney committed to engine delivery volumes it couldn’t fulfill while redirecting engines to maintenance facilities. According to March reporting by Reuters, Airbus is pursuing potential compensation.
Collins Aerospace achieved 5% sales growth to $7.6 billion, with commercial original equipment up 15% and commercial aftermarket expanding 7%.
Management elevated its full-year 2026 adjusted earnings guidance to $6.70–$6.90 per share from the previous $6.60–$6.80 range. The $6.80 midpoint trails slightly behind the analyst consensus of $6.84.
Annual revenue projections were also increased to $92.5–$93.5 billion from the earlier $92.0–$93.0 billion forecast. The $93.0 billion midpoint remains just under the $93.5 billion Street consensus.
RTX shares traded 3.35% higher in pre-market activity following the quarterly disclosure.
