RTX Reports Q2 2026 Results

Rhea-AI Summary

RTX (NYSE: RTX) reported second quarter 2026 sales of $24.7 billion, up 14% year over year and 16% organically. GAAP EPS was $1.57, including acquisition accounting and restructuring items, while adjusted EPS* was $1.89, up 21%. Net income was $2.1 billion; adjusted net income* was $2.6 billion, up 22%. Operating cash flow reached $3.5 billion and free cash flow* was $2.9 billion, versus negative free cash flow a year earlier.

RTX reported a total backlog of $289 billion, split between $170 billion commercial and $119 billion defense, and agreed to sell Raytheon’s Blue Canyon Technologies for $620 million. For full-year 2026, RTX raised its outlook for adjusted sales* to $95.0–$96.0 billion, organic sales growth* to 8–9%, adjusted EPS* to $7.10–$7.25, and free cash flow* to $8.50–$8.75 billion.

Positive

• Q2 2026 sales $24.7B, up 14% YoY; organic* growth 16%
• Adjusted EPS* $1.89 in Q2 2026, up 21% versus 2025
• Free cash flow* $2.9B vs prior-year negative $72M
• Backlog $289B, including $170B commercial and $119B defense, up 22% YoY
• 2026 adjusted sales* outlook raised to $95.0–$96.0B from $92.5–$93.5B
• Segment sales growth: Collins +8% reported, Pratt & Whitney +16%, Raytheon +18% YoY
• Agreement to sell Raytheon’s Blue Canyon Technologies business for $620M

Negative

• Collins Aerospace defense mix, higher SG&A, and 2025 divestitures partly offset profit growth
• Pratt & Whitney commercial OE sales down 8% YoY despite overall segment growth
• Higher restructuring charges at Collins Aerospace tied to cost transformation initiatives
• Pratt & Whitney margins pressured by large commercial engine mix and higher SG&A expense

News Explained

RTX defines free cash flow as operating cash flow minus capital expenditures and says it helps assess liquidity and funding for acquisitions, debt service, common-stock repurchases and distributions; its $2.9 billion Q2 figure therefore reflects cash remaining after capital spending, not operating cash flow alone.

Market reaction: RTX +7.33% on Q2 2026 earnings report

+7.33% 2.2x vol

15 alerts

+7.33% News Effect

+5.0% Peak in 4 hr 3 min

+$17.92B Valuation Impact

$262.44B Market Cap

2.2x Rel. Volume

On the day this news was published, RTX gained 7.33%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.0% during that session. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $17.92B to the company's valuation, bringing the market cap to $262.44B at that time. Trading volume was elevated at 2.2x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +7.3% in the session following this news. Historical earnings event news_id 920477 r...

Analysis

The stock moved +7.3% in the session following this news. Historical earnings event news_id 920477 recorded a 7.67% 24-hour reaction. This announcement's raised outlook can be compared with that record; the active S-3ASR shelf remains a structural capital-markets risk.

Key Figures

Q2 Sales: $24.7 billion Adjusted EPS: $1.89 Free Cash Flow: $2.9 billion +5 more

8 metrics

Q2 Sales $24.7 billion Q2 2026, up 14 percent versus prior year

Adjusted EPS $1.89 Q2 2026, up 21 percent versus prior year

Free Cash Flow $2.9 billion Q2 2026

Company Backlog $289 billion Q2 2026, including $170 billion commercial and $119 billion defense

Business Sale Agreement $620 million Agreement to sell Raytheon's Blue Canyon Technologies business

Adjusted Sales Outlook $95.0-$96.0 billion Full-year 2026 outlook, up from $92.5-$93.5 billion

Adjusted EPS Outlook $7.10-$7.25 Full-year 2026 outlook, up from $6.70-$6.90

Free Cash Flow Outlook $8.50-$8.75 billion Full-year 2026 outlook, up from $8.25-$8.75 billion

Previous Earnings Reports

5 past events · Latest: Apr 21 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 21	Q1 earnings	Positive	-4.4%	Strong quarterly results and raised sales and EPS guidance
Oct 21	Q3 earnings	Positive	+7.7%	Sales growth, raised guidance, backlog expansion, and debt reduction
Jul 22	Q2 earnings	Positive	-1.6%	Sales and adjusted EPS growth with updated annual outlook
Apr 22	Q1 earnings	Positive	-9.8%	Sales, adjusted EPS, cash flow, and backlog growth
Oct 22	Q3 earnings	Positive	-0.3%	Higher sales, EPS, cash flow, backlog, and annual outlook

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

RTX's earnings-tagged history showed divergence in four of five events, with only Q3 2025 aligned.

Key Terms

gaap, non-gaap financial measures, organic sales, acquisition accounting adjustments

4 terms

gaap financial

"GAAP EPS of $1.57, including $0.27 of acquisition accounting adjustments"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial measures financial

"Adjusted net sales and free cash flow are non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

organic sales financial

"up 14 percent versus prior year, and up 16 percent organically"

Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.

acquisition accounting adjustments financial

"including $0.27 of acquisition accounting adjustments"

Adjustments made after one company buys another to restate the acquired company's assets, liabilities and equity at their fair values and to record items like goodwill and deferred taxes; they are created by the purchase accounting rules that require a buyer to allocate the purchase price across the target’s balance sheet. These adjustments change reported assets, liabilities, and future depreciation or amortization, which can materially alter the buyer’s reported earnings and balance sheet metrics — like reappraising rooms in a purchased house and changing future upkeep costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RTX delivers double-digit sales and earnings growth in Q2;
Raises 2026 outlook for adjusted sales*, adjusted EPS*, and free cash flow*

ARLINGTON, Va., July 23, 2026 /PRNewswire/ -- RTX (NYSE: RTX) reports second quarter 2026 results.

Second quarter 2026

• Sales of $24.7 billion, up 14 percent versus prior year, and up 16 percent organically*
• GAAP EPS of $1.57, including $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other net significant and/or non-recurring items
• Adjusted EPS* of $1.89, up 21 percent versus prior year
• Operating cash flow of $3.5 billion; free cash flow* of $2.9 billion
• Company backlog of $289 billion, including $170 billion of commercial and $119 billion of defense
• Reached an agreement to sell Raytheon's Blue Canyon Technologies business for $620 million

Updates outlook for full year 2026

• Adjusted sales* of $95.0 - $96.0 billion, up from $92.5 - $93.5 billion
• Organic sales growth* of 8 to 9 percent, up from 5 to 6 percent
• Adjusted EPS* of $7.10 - $7.25, up from $6.70 - $6.90
• Free cash flow* of $8.50 - $8.75 billion, up from $8.25 - $8.75 billion

"RTX delivered very strong second quarter results with 16 percent organic sales growth,* including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow.* Demand remains robust, and our backlog is up 22 percent year over year," said RTX Chairman and CEO Chris Calio.

"Given our first half performance and current backlog, we are raising our full year outlook for adjusted sales,* adjusted EPS,* and free cash flow.* RTX is exceptionally well positioned to drive continued growth as we execute on our backlog, increase productivity, expand capacity, and introduce new technologies to our customers."

Second quarter 2026

RTX second quarter reported and adjusted sales* were $24.7 billion, up 14 percent over the prior year and 16 percent organically.* GAAP EPS of $1.57 included $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other net significant and/or non-recurring items. Adjusted EPS* of $1.89 was up 21 percent versus the prior year.

The company reported net income attributable to common shareowners in the second quarter of $2.1 billion which included $0.4 billion of acquisition accounting adjustments and $0.1 billion of restructuring and other net significant and/or non-recurring items. Adjusted net income* of $2.6 billion was up 22 percent versus the prior year driven by adjusted segment operating profit growth* across all three segments. Operating cash flow in the second quarter was $3.5 billion and capital expenditures were $0.7 billion, resulting in free cash flow* of $2.9 billion.

Summary Financial Results
	2nd Quarter
($ in millions, except EPS)	2026		2025	% Change
Reported
Sales	$   24,708		$   21,581	14 %
Net Income	$     2,139		$     1,657	29 %
EPS	$       1.57		$       1.22	29 %
Adjusted*
Sales	$   24,708		$   21,581	14 %
Net Income	$     2,579		$     2,118	22 %
EPS	$       1.89		$       1.56	21 %
Operating Cash Flow	$     3,547		$       458	674 %
Free Cash Flow*	$     2,878		$        (72)	NM
NM = Not Meaningful

 

Segment Results    Collins Aerospace
	2nd Quarter
($ in millions)	2026		2025	% Change
Reported
Sales	$  8,210		$  7,622	8 %
Operating Profit	$  1,306		$  1,173	11 %
ROS	15.9 %		15.4 %	50	bps
Adjusted*
Sales	$  8,210		$  7,622	8 %
Operating Profit	$  1,370		$  1,249	10 %
ROS	16.7 %		16.4 %	30	bps

Collins Aerospace second quarter 2026 reported and adjusted sales* of $8,210 million were up 8 percent versus the prior year. Excluding the impact of divestitures, sales increased 13 percent organically* driven by a 26 percent increase in commercial OE, a 10 percent increase in commercial aftermarket, and a 7 percent increase in defense. The increase in commercial OE sales was driven by higher volume on narrowbody and widebody platforms, and the increase in commercial aftermarket sales was primarily driven by growth in parts and repair and modifications and upgrades. The increase in defense sales was driven by higher volume across multiple programs.

Collins Aerospace reported operating profit of $1,306 million was up 11 percent versus the prior year. Adjusted operating profit* of $1,370 million was up 10 percent versus the prior year. The growth was driven by drop through on higher commercial and defense volume, which was partially offset by defense mix, higher SG&A expense, and the impact of divestitures completed in 2025. Reported operating profit in Q2 2026 included higher restructuring charges associated with cost transformation initiatives.

Pratt & Whitney
	2nd Quarter
($ in millions)	2026		2025	% Change
Reported
Sales	$  8,889		$  7,631	16 %
Operating Profit	$     738		$     492	50 %
ROS	8.3 %		6.4 %	190	bps
Adjusted*
Sales	$  8,889		$  7,631	16 %
Operating Profit	$     740		$     608	22 %
ROS	8.3 %		8.0 %	30	bps

Pratt & Whitney second quarter reported and adjusted sales* of $8,889 million were up 16 percent versus the prior year. The sales growth was driven by a 25 percent increase in commercial aftermarket and a 23 percent increase in military, partially offset by an 8 percent decrease in commercial OE. The increase in commercial aftermarket was driven by higher volume, while the increase in military sales was driven by higher F135 volume, including the benefit of prior year contract award timing. The decrease in commercial OE sales was driven by large commercial engine mix which more than offset increased large commercial engine deliveries. 

Pratt & Whitney reported operating profit of $738 million was up 50 percent versus the prior year. Q2 2025 reported profit included an approximately $100 million charge related to a customer bankruptcy. Adjusted operating profit* of $740 million was up 22 percent versus the prior year. The increase was driven by drop through on higher commercial aftermarket and military volume, as well as military mix. This growth was partially offset by increased large commercial engine deliveries, large commercial engine mix, and higher SG&A expense.

Raytheon
	2nd Quarter
($ in millions)	2026		2025	% Change
Reported
Sales	$  8,269		$  7,001	18 %
Operating Profit	$  1,042		$     805	29 %
ROS	12.6 %		11.5 %	110	bps
Adjusted*
Sales	$  8,269		$  7,001	18 %
Operating Profit	$  1,043		$     809	29 %
ROS	12.6 %		11.6 %	100	bps

Raytheon second quarter reported and adjusted sales* of $8,269 million were up 18 percent versus the prior year. This increase was driven by higher volume on land and air defense systems, naval programs, and air and space defense systems, including Patriot, Standard Missile, and AMRAAM. 

Raytheon reported operating profit of $1,042 million was up 29 percent versus the prior year. Adjusted operating profit* of $1,043 million was up 29 percent versus the prior year. The increase was driven by higher volume, favorable mix, including Patriot programs, and improved net productivity.

*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), segment operating profit (loss) and margin percentage (ROS), adjusted segment sales, adjusted segment operating profit (loss) and margin percentage (ROS), adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate, and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

Conference Call on the Second Quarter 2026 Financial Results
RTX's financial results conference call will be held on Thursday, July 23, 2026 at 7:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.

Use and Definitions of Non-GAAP Financial Measures
RTX Corporation ("RTX" or "the Company") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:

Non-GAAP measure	Definition
Adjusted net sales / Adjusted sales	Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as "net significant and/or non-recurring items").
Organic sales	Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items.
Adjusted operating profit (loss) and margin percentage (ROS)	Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. Adjusted operating profit margin percentage represents adjusted operating profit (loss) as a percentage of adjusted net sales.
Segment operating profit (loss) and margin percentage (ROS)	Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin percentage represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other).
Adjusted segment sales	Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items.
Adjusted segment operating profit (loss) and margin percentage (ROS)	Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin percentage represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other).
Adjusted net income	Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Adjusted earnings per share (EPS)	Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Adjusted effective tax rate	Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.
Free cash flow	Free cash flow represents cash flow from operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX's common stock, and distribution of earnings to shareowners.

1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.

2 Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.

3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.

When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), adjusted segment operating profit (loss) and margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "goals," "objectives," "confident," "on track," "designed to," "commit," "commitment" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict, and each of which may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation: (1) changes in economic, capital market, and political conditions in the U.S. and globally; (2) changes in U.S. or foreign government defense spending, national priorities, and policy positions; (3) our performance on our contracts and programs, including our ability to control costs, and our dependence on U.S. government approvals for certain international contracts; (4) challenges in the development, certification, production, delivery, support, and performance of RTX's advanced technologies and new products and services and the realization of anticipated benefits; (5) challenges of operating in RTX's highly-competitive industries both domestically and abroad; (6) our reliance on U.S. and non-U.S. suppliers and commodity markets, including cost increases and disruptions in the delivery of materials and services to RTX or our suppliers; (7) changes in trade policies, implementation of sanctions, imposition of tariffs (and counter-tariffs), and other trade measures and restrictions, foreign currency fluctuations, and sales methods; (8) the economic condition of the aerospace industry; (9) the ability of RTX to attract, train, qualify, and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world; (10) the scope, nature, timing, and challenges of managing and completing acquisitions, investments, divestitures, and other transactions; (11) compliance with legal, environmental, regulatory, and other requirements in the U.S. and other countries in which RTX and its businesses operate; (12) pending, threatened, and future legal proceedings, investigations, audits, and other contingencies; (13) the previously-disclosed deferred prosecution agreements entered into between the Company and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on the Company, and the related investigations by the SEC and DOJ, and the consent agreement between the Company and the Department of State; (14) RTX's ability to engage in desirable capital-raising or strategic transactions; (15) repurchases by RTX of its common stock, or declarations of cash dividends, which may be discontinued, accelerated, suspended, or delayed at any time due to various factors; (16) realizing expected benefits from, incurring costs for, and successfully managing strategic initiatives such as cost reduction, restructuring, digital transformation, and other operational initiatives; (17) additional tax exposures due to new tax legislation or other developments in the U.S. and other countries in which RTX and its businesses operate; (18) the identified rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet; (19) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services; (20) an RTX product safety failure, quality issue, or other failure affecting RTX's or its customers' or suppliers' products or systems; (21) cybersecurity, including cyber-attacks on RTX's information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (22) insufficient indemnity or insurance coverage; (23) our intellectual property and certain third-party intellectual property; (24) threats to RTX facilities and personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature, or other similar events outside of RTX's control that may affect RTX or its suppliers or customers; (25) changes in accounting estimates for our programs on our financial results; (26) changes in pension and other postretirement plan estimates and assumptions and contributions; (27) an impairment of goodwill and other intangible assets; and (28) climate change and climate-related regulations, and any related customer and market demands, products and technologies. For additional information on identifying factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, see the reports of RTX filed with or furnished to the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and RTX assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

RTX Corporation Condensed Consolidated Statement of Operations
		Quarter Ended June 30,				Six Months Ended June 30,
		(Unaudited)				(Unaudited)
(dollars in millions, except per share amounts; shares in millions)		2026		2025		2026		2025
Net Sales		$   24,708		$   21,581		$   46,784		$   41,887
Costs and expenses:
	Cost of sales	19,575		17,205		37,057		33,395
	Research and development	726		697		1,353		1,334
	Selling, general, and administrative	1,658		1,573		3,134		3,021
	Total costs and expenses	21,959		19,475		41,544		37,750
Other income, net		62		40		126		44
Operating profit		2,811		2,146		5,366		4,181
	Non-service pension income	(348)		(351)		(703)		(717)
	Interest expense, net	417		457		807		900
Income before income taxes		2,742		2,040		5,262		3,998
	Income tax expense	493		315		856		648
Net income		2,249		1,725		4,406		3,350
	Less: Noncontrolling interest in subsidiaries' earnings	110		68		208		158
Net income attributable to common shareowners		$     2,139		$     1,657		$     4,198		$     3,192
Earnings Per Share attributable to common shareowners:
	Basic	$      1.58		$      1.24		$      3.11		$      2.38
	Diluted	$      1.57		$      1.22		$      3.08		$      2.36
Weighted Average Shares Outstanding:
	Basic shares	1,350.7		1,340.6		1,349.2		1,338.8
	Diluted shares	1,365.0		1,354.0		1,364.7		1,352.9

 

RTX Corporation Segment Net Sales and Operating Profit (Loss)
	Quarter Ended						Six Months Ended
	(Unaudited)						(Unaudited)
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
(dollars in millions)	Reported	Adjusted		Reported	Adjusted		Reported	Adjusted		Reported	Adjusted
Net Sales
Collins Aerospace	$ 8,210	$ 8,210		$ 7,622	$ 7,622		$          15,812	$          15,812		$          14,839	$          14,839
Pratt & Whitney	8,889	8,889		7,631	7,631		17,062	17,062		14,997	14,997
Raytheon	8,269	8,269		7,001	7,001		15,214	15,214		13,341	13,341
Total segments	25,368	25,368		22,254	22,254		48,088	48,088		43,177	43,177
Eliminations and other	(660)	(660)		(673)	(673)		(1,304)	(1,304)		(1,290)	(1,290)
Consolidated	$          24,708	$          24,708		$          21,581	$          21,581		$          46,784	$          46,784		$          41,887	$          41,887
Operating Profit (Loss)
Collins Aerospace	$ 1,306	$ 1,370		$ 1,173	$ 1,249		$ 2,613	$ 2,668		$ 2,261	$ 2,476
Pratt & Whitney	738	740		492	608		1,448	1,451		1,072	1,198
Raytheon	1,042	1,043		805	809		1,883	1,888		1,483	1,487
Total segments	3,086	3,153		2,470	2,666		5,944	6,007		4,816	5,161
Eliminations and other	98	28		24	(17)		136	66		36	(5)
Corporate expenses and other unallocated items	(70)	7		(47)	(42)		(112)	(34)		(85)	(71)
FAS/CAS operating adjustment	171	171		186	186		343	343		371	371
Acquisition accounting adjustments	(474)	—		(487)	—		(945)	—		(957)	—
Consolidated	$ 2,811	$ 3,359		$ 2,146	$ 2,793		$ 5,366	$ 6,382		$ 4,181	$ 5,456
Segment Operating Profit Margin
Collins Aerospace	15.9 %	16.7 %		15.4 %	16.4 %		16.5 %	16.9 %		15.2 %	16.7 %
Pratt & Whitney	8.3 %	8.3 %		6.4 %	8.0 %		8.5 %	8.5 %		7.1 %	8.0 %
Raytheon	12.6 %	12.6 %		11.5 %	11.6 %		12.4 %	12.4 %		11.1 %	11.1 %
Total segment	12.2 %	12.4 %		11.1 %	12.0 %		12.4 %	12.5 %		11.2 %	12.0 %

 

RTX Corporation Condensed Consolidated Balance Sheet
	June 30, 2026		December 31, 2025
(dollars in millions)	(Unaudited)		(Unaudited)
Assets
Cash and cash equivalents	$           8,305		$           7,435
Accounts receivable, net	13,942		14,701
Contract assets, net	18,980		17,092
Inventory, net	14,409		13,364
Other assets, current	8,276		7,740
Total current assets	63,912		60,332
Customer financing assets	1,902		2,132
Fixed assets, net	16,965		16,868
Operating lease right-of-use assets	1,727		1,887
Goodwill	52,928		53,343
Intangible assets, net	31,043		31,845
Other assets	5,495		4,672
Total assets	$        173,972		$        171,079
Liabilities, Redeemable Noncontrolling Interest, and Equity
Short-term borrowings	$             229		$             204
Accounts payable	16,998		15,895
Accrued employee compensation	2,356		3,308
Other accrued liabilities	15,695		14,350
Contract liabilities	22,671		21,615
Long-term debt currently due	5,296		3,412
Total current liabilities	63,245		58,784
Long-term debt	31,858		34,288
Operating lease liabilities, non-current	1,473		1,602
Future pension and postretirement benefit obligations	1,956		2,067
Other long-term liabilities	7,296		7,200
Total liabilities	105,828		103,941
Redeemable noncontrolling interest	28		36
Shareowners' Equity:
Common stock	38,424		38,126
Treasury stock	(26,758)		(26,881)
Retained earnings	58,020		56,718
Accumulated other comprehensive loss	(3,309)		(2,718)
Total shareowners' equity	66,377		65,245
Noncontrolling interest	1,739		1,857
Total equity	68,116		67,102
Total liabilities, redeemable noncontrolling interest, and equity	$        173,972		$        171,079

 

RTX Corporation Condensed Consolidated Statement of Cash Flows
	Quarter Ended June 30,				Six Months Ended June 30,
	(Unaudited)				(Unaudited)
(dollars in millions)	2026		2025		2026		2025
Operating Activities:
Net income	$     2,249		$     1,725		$     4,406		$     3,350
Adjustments to reconcile net income to net cash flows provided by operating activities from:
Depreciation and amortization	1,079		1,076		2,150		2,128
Deferred income tax (benefit) provision	(56)		54		(30)		121
Stock compensation cost	164		113		296		224
Net periodic pension and other postretirement income	(303)		(312)		(616)		(636)
Share-based 401(k) matching contributions	147		140		339		307
Change in:
Accounts receivable	(729)		(765)		1,094		(1,137)
Contract assets	(963)		(484)		(1,942)		(1,190)
Inventory	(330)		(384)		(1,143)		(1,197)
Other current assets	47		25		(422)		(100)
Accounts payable and accrued liabilities	2,102		(538)		947		(141)
Contract liabilities	198		(30)		292		343
Other operating activities, net	(58)		(162)		31		(309)
Net cash flows provided by operating activities	3,547		458		5,402		1,763
Investing Activities:
Capital expenditures	(669)		(530)		(1,215)		(1,043)
Increase in other intangible assets	(58)		(122)		(156)		(226)
(Payments) receipts from settlements of derivative contracts, net	(71)		192		1		145
Other investing activities, net	(146)		(49)		(182)		(63)
Net cash flows used in investing activities	(944)		(509)		(1,552)		(1,187)
Financing Activities:
Repayment of long-term debt	(24)		(780)		(524)		(789)
Change in commercial paper, net	—		1,432		—		1,432
Dividends paid	(983)		(910)		(1,898)		(1,750)
Repurchase of common stock	—		—		—		(50)
Other financing activities, net	(62)		(95)		(487)		(252)
Net cash flows used in financing activities	(1,069)		(353)		(2,909)		(1,409)
Effect of foreign exchange rate changes on cash and cash equivalents	(13)		38		(19)		54
Net increase (decrease) in cash, cash equivalents, and restricted cash	1,521		(366)		922		(779)
Cash, cash equivalents and restricted cash, beginning of period	6,871		5,193		7,470		5,606
Cash, cash equivalents and restricted cash, end of period	8,392		4,827		8,392		4,827
Less: Restricted cash, included in Other assets, current and Other assets	87		45		87		45
Cash and cash equivalents, end of period	$     8,305		$     4,782		$     8,305		$     4,782

 

RTX Corporation Reconciliation of Adjusted (Non-GAAP) Results Adjusted Sales, Adjusted Operating Profit (Loss) & Operating Profit (Loss) Margin
	Quarter Ended June 30,				Six Months Ended June 30,
	(Unaudited)				(Unaudited)
(dollars in millions - Income (Expense))	2026		2025		2026		2025
Collins Aerospace
Net sales	$    8,210		$    7,622		$  15,812		$  14,839
Operating profit	$    1,306		$    1,173		$    2,613		$    2,261
Restructuring	(64)		(39)		(55)		(152)
Segment and portfolio transformation and divestiture costs (1)	—		(37)		—		(63)
Adjusted operating profit	$    1,370		$    1,249		$    2,668		$    2,476
Adjusted operating profit margin	16.7 %		16.4 %		16.9 %		16.7 %
Pratt & Whitney
Net sales	$    8,889		$    7,631		$  17,062		$  14,997
Operating profit	$       738		$       492		$    1,448		$    1,072
Restructuring	(2)		(8)		(3)		(18)
Customer bankruptcy (1)	—		(108)		—		(108)
Adjusted operating profit	$       740		$       608		$    1,451		$    1,198
Adjusted operating profit margin	8.3 %		8.0 %		8.5 %		8.0 %
Raytheon
Net sales	$    8,269		$    7,001		$  15,214		$  13,341
Operating profit	$    1,042		$       805		$    1,883		$    1,483
Restructuring	(1)		(4)		(5)		(4)
Adjusted operating profit	$    1,043		$       809		$    1,888		$    1,487
Adjusted operating profit margin	12.6 %		11.6 %		12.4 %		11.1 %
Eliminations and Other
Net sales	$      (660)		$      (673)		$   (1,304)		$   (1,290)
Operating profit	$         98		$         24		$       136		$         36
Gain on investment (1)	70		41		70		41
Adjusted operating profit (loss)	$         28		$        (17)		$         66		$          (5)
Corporate expenses and other unallocated items
Operating loss	$        (70)		$        (47)		$      (112)		$        (85)
Restructuring	(8)		—		(9)		(9)
Tax audit settlements and closures (1)	—		(5)		—		(5)
Litigation matter (1)	(69)		—		(69)		—
Adjusted operating profit (loss)	$           7		$        (42)		$        (34)		$        (71)
FAS/CAS Operating Adjustment
Operating profit	$       171		$       186		$       343		$       371
Acquisition Accounting Adjustments
Operating loss	$      (474)		$      (487)		$      (945)		$      (957)
Acquisition accounting adjustments	(474)		(487)		(945)		(957)
Adjusted operating loss	$         —		$         —		$         —		$         —
RTX Consolidated
Net sales	$  24,708		$  21,581		$  46,784		$  41,887
Operating profit	$    2,811		$    2,146		$    5,366		$    4,181
Restructuring	(75)		(51)		(72)		(183)
Acquisition accounting adjustments	(474)		(487)		(945)		(957)
Total net significant and/or non-recurring items included in Operating profit above (1)	1		(109)		1		(135)
Adjusted operating profit	$    3,359		$    2,793		$    6,382		$    5,456
(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

 

RTX Corporation Reconciliation of Adjusted (Non-GAAP) Results Adjusted Income, Earnings Per Share, and Effective Tax Rate
	Quarter Ended June 30,				Six Months Ended June 30,
	(Unaudited)				(Unaudited)
(dollars in millions - Income (Expense))	2026		2025		2026		2025
Net income attributable to common shareowners	$  2,139		$  1,657		$  4,198		$  3,192
Total Restructuring	(75)		(51)		(72)		(183)
Total Acquisition accounting adjustments	(474)		(487)		(945)		(957)
Total net significant and/or non-recurring items included in Operating profit (1)	1		(109)		1		(135)
Significant and/or non-recurring items included in Non-service Pension Income
Non-service pension restructuring	(2)		—		(4)		—
Significant non-recurring and non-operational items included in Interest Expense, Net
Tax audit settlements and closures (1)	—		11		—		54
International tax matter (1)	—		—		—		(35)
Tax effect of restructuring and net significant and/or non-recurring items above	110		142		214		280
Significant and/or non-recurring items included in Income Tax Expense
Tax audit settlements and closures (1)	—		33		—		59
Less: Impact on net income attributable to common shareowners	(440)		(461)		(806)		(917)
Adjusted net income attributable to common shareowners	$  2,579		$  2,118		$  5,004		$  4,109
Diluted Earnings Per Share	$   1.57		$   1.22		$   3.08		$   2.36
Impact on Diluted Earnings Per Share	(0.32)		(0.34)		(0.59)		(0.68)
Adjusted Diluted Earnings Per Share	$   1.89		$   1.56		$   3.67		$   3.04
Effective Tax Rate	18.0 %		15.4 %		16.3 %		16.2 %
Impact on Effective Tax Rate	(0.3) %		(2.9) %		(0.7) %		(2.6) %
Adjusted Effective Tax Rate	18.3 %		18.3 %		17.0 %		18.8 %
(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

 

RTX Corporation Reconciliation of Adjusted (Non-GAAP) Results Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin
	Quarter Ended June 30,				Six Months Ended June 30,
	(Unaudited)				(Unaudited)
(dollars in millions)	2026		2025		2026		2025
Net Sales	$  24,708		$  21,581		$  46,784		$  41,887
Reconciliation to segment net sales:
Eliminations and other	660		673		1,304		1,290
Segment Net Sales	$  25,368		$  22,254		$  48,088		$  43,177
Operating Profit	$   2,811		$   2,146		$   5,366		$   4,181
Operating Profit Margin	11.4 %		9.9 %		11.5 %		10.0 %
Reconciliation to segment operating profit:
Eliminations and other	(98)		(24)		(136)		(36)
Corporate expenses and other unallocated items	70		47		112		85
FAS/CAS operating adjustment	(171)		(186)		(343)		(371)
Acquisition accounting adjustments	474		487		945		957
Segment Operating Profit	$   3,086		$   2,470		$   5,944		$   4,816
Segment Operating Profit Margin	12.2 %		11.1 %		12.4 %		11.2 %
Reconciliation to adjusted segment operating profit:
Restructuring	(67)		(51)		(63)		(174)
Net significant and/or non-recurring items (1)	—		(145)		—		(171)
Adjusted Segment Operating Profit	$   3,153		$   2,666		$   6,007		$   5,161
Adjusted Segment Operating Profit Margin	12.4 %		12.0 %		12.5 %		12.0 %
(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

 

RTX Corporation Free Cash Flow Reconciliation
	Quarter Ended June 30,
	(Unaudited)
(dollars in millions)	2026		2025
Net cash flows provided by operating activities	$         3,547		$           458
Capital expenditures	(669)		(530)
Free cash flow	$         2,878		$           (72)
	Six Months Ended June 30,
	(Unaudited)
(dollars in millions)	2026		2025
Net cash flows provided by operating activities	$         5,402		$         1,763
Capital expenditures	(1,215)		(1,043)
Free cash flow	$         4,187		$           720

 

RTX Corporation Reconciliation of Adjusted (Non-GAAP) Results Organic Sales Reconciliation
	Quarter ended June 30, 2026 compared to the Quarter Ended June 30, 2025
	(Unaudited)
(dollars in millions)	Total Reported Change	Acquisitions & Divestitures Change	FX / Other Change (2)	Organic Change		Prior Year Adjusted Sales (1)	Organic Change as a % of Adjusted Sales
Collins Aerospace	$           588	$          (404)	$            11	$           981		$         7,622	13 %
Pratt & Whitney	1,258	—	(16)	1,274		7,631	17 %
Raytheon	1,268	—	12	1,256		7,001	18 %
Eliminations and Other (3)	13	13	—	—		(673)	— %
Consolidated	$         3,127	$          (391)	$              7	$         3,511		$       21,581	16 %

(1)	For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."
(2)	Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.
(3)	FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

 

	Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025
	(Unaudited)
(dollars in millions)	Total Reported Change	Acquisitions & Divestitures Change	FX / Other Change (2)	Organic Change		Prior Year Adjusted Sales (1)	Organic Change as a % of Adjusted Sales
Collins Aerospace	$           973	$          (787)	$            51	$         1,709		$       14,839	12 %
Pratt & Whitney	2,065	—	21	2,044		14,997	14 %
Raytheon	1,873	—	29	1,844		13,341	14 %
Eliminations and Other (3)	(14)	26	(31)	(9)		(1,290)	1 %
Consolidated	$         4,897	$          (761)	$            70	$         5,588		$       41,887	13 %

(1)	For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."
(2)	Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.
(3)	FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

Non-GAAP Financial Adjustments

Non-GAAP Adjustments	Description
Segment and portfolio transformation and divestiture costs	The quarter and six months ended June 30, 2025 include separation costs incurred in advance of the completion of certain divestitures.
Customer bankruptcy	The quarter and six months ended June 30, 2025 include a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt & Whitney. The charge primarily relates to contract asset exposures with a customer. Management has determined that the nature and significance of the charge is considered unusual and, therefore, not indicative of the Company's ongoing operational performance.
Gain on investment	The quarter and six months ended June 30, 2026 and quarter and six months ended June 30, 2025, include a pre-tax gain of $70 million and $41 million, respectively, related to the increase in fair value on an investment. Management has determined that the nature of the gain on investment to be significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance.
Tax audit settlements and closures	The quarter and six months ended June 30, 2025 include a tax benefit of $59 million and a pre-tax benefit on the reversal of $54 million of interest accruals both recognized as a result of the closure of the examination phase of multiple state tax audits. In addition, in the quarter and six months ended June 30, 2025, there was a tax benefit of $33 million and a net pre-tax benefit of $6 million from the reversal of interest accruals and the write-off of certain tax related indemnity receivables associated with the closure of a federal tax audit.
Litigation matter	The quarter and six months ended June 30, 2026 include a pre-tax charge of  $69 million related to a litigation matter. Management considers this charge non-operational and directly attributable to the litigation matter and, therefore, not indicative of the Company's ongoing operational performance.
International tax matter	During the six months ended June 30, 2025, the Company recorded the impact of an unfavorable decision related to an international tax matter for the years ended December 31, 2015 to December 31, 2019, resulting in interest expense, net of $35 million and a tax benefit of $8 million. Management has determined that the nature of this impact related to the tax matter is considered significant and non-operational, and, therefore, not indicative of the Company's ongoing operational performance.

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SOURCE RTX

FAQ

How did RTX (NYSE: RTX) perform in Q2 2026?

RTX reported Q2 2026 sales of $24.7 billion, up 14% year over year. According to RTX, organic sales* grew 16%, GAAP EPS reached $1.57, and adjusted EPS* was $1.89, with free cash flow* improving to $2.9 billion from negative $72 million.

Did RTX raise its 2026 earnings outlook after Q2 2026 results?

Yes, RTX raised its 2026 outlook for adjusted EPS* to $7.10–$7.25 from $6.70–$6.90. According to RTX, the company also increased adjusted sales* guidance to $95.0–$96.0 billion and organic sales growth* expectations to 8–9% for the full year.

What is RTX’s backlog after its Q2 2026 earnings report?

RTX reported a total backlog of $289 billion at Q2 2026. According to RTX, this includes $170 billion of commercial backlog and $119 billion of defense backlog, and overall backlog is up 22% year over year, supporting future revenue visibility across segments.

How did RTX’s free cash flow* change in Q2 2026 versus Q2 2025?

RTX generated $2.9 billion in free cash flow* in Q2 2026 compared with negative $72 million a year earlier. According to RTX, operating cash flow rose to $3.5 billion, while capital expenditures were $0.7 billion, driving the sharp improvement in free cash flow*.

What were the Q2 2026 results for Collins Aerospace, Pratt & Whitney, and Raytheon at RTX?

Collins Aerospace Q2 2026 sales were $8.2 billion (up 8%), Pratt & Whitney $8.9 billion (up 16%), and Raytheon $8.3 billion (up 18%). According to RTX, all three segments increased adjusted operating profit*, supported by higher commercial aftermarket and defense volumes.

What transaction did RTX announce regarding Raytheon’s Blue Canyon Technologies in July 2026?

RTX reached an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million. According to RTX, this planned divestiture follows broader portfolio actions and is separate from core Collins Aerospace, Pratt & Whitney, and Raytheon segment operations disclosed in Q2 2026 results.

What are RTX’s 2026 free cash flow* expectations after Q2 2026 earnings?

RTX now expects 2026 free cash flow* of $8.50–$8.75 billion, raised from $8.25–$8.75 billion. According to RTX, this outlook reflects strong first-half cash generation, including $3.5 billion of Q2 operating cash flow and $2.9 billion of Q2 free cash flow*.