RTX (NYSE:RTX) Releases Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• RTX beat second-quarter expectations with earnings of $1.89 per share versus the $1.66 estimate and revenue of $24.71 billion versus $22.89 billion expected. Revenue rose 14.5% year over year.
• The company raised its full-year outlook, now guiding to FY 2026 EPS of $7.10-$7.25 and sales of about $95 billion-$96 billion. Management also boosted free cash flow expectations to $8.5 billion-$8.75 billion.
• Backlog reached a record $289 billion, driven by strong defense and international demand, while commercial aerospace remained healthy thanks to aftermarket growth and improving Pratt & Whitney engine operations.

RTX (NYSE:RTX - Get Free Report) released its quarterly earnings data on Thursday. The company reported $1.89 earnings per share for the quarter, beating the consensus estimate of $1.66 by $0.23, Zacks reports. RTX had a return on equity of 13.50% and a net margin of 8.03%.The business had revenue of $24.71 billion for the quarter, compared to analysts' expectations of $22.89 billion. During the same quarter in the previous year, the business posted $1.56 EPS. RTX's revenue for the quarter was up 14.5% on a year-over-year basis. RTX updated its FY 2026 guidance to 7.100-7.250 EPS.

Here are the key takeaways from RTX's conference call:

• RTX beat expectations and raised full-year guidance, with Q2 adjusted sales of $24.7 billion, adjusted EPS of $1.89, and free cash flow of $2.9 billion. The company now expects 2026 adjusted sales of $95 billion-$96 billion, EPS of $7.10-$7.25, and free cash flow of $8.5 billion-$8.75 billion.
• Backlog hit a record $289 billion, up 22% year over year, supported by nearly $20 billion of Raytheon bookings and a 2.4 book-to-bill in the quarter. Management highlighted strong international defense demand, including over $10 billion of Raytheon international awards in the first half.
• Commercial aerospace remained strong, led by aftermarket growth and improving engine operations. Pratt said PW1100G AOGs declined 25% year to date, MRO output rose over 40%, and Pratt expects a record number of GTF engine deliveries this year.
• Raytheon saw strong defense execution and margin expansion, with Q2 sales up 18% organically, operating profit up $234 million, and margins up 100 basis points. Management said productivity, favorable mix, and international demand are supporting further margin improvement.
• Management sees continued investment needs and a mixed second-half revenue cadence, including higher inventory buildup and ongoing supply-chain expansion to support future growth. RTX also said framework agreements with the U.S. government remain in progress and are not yet in backlog.

RTX Stock Performance

Shares of NYSE:RTX traded up $15.09 during trading on Thursday, reaching $209.97. 4,131,255 shares of the stock were exchanged, compared to its average volume of 5,669,057. RTX has a 12 month low of $150.61 and a 12 month high of $214.50. The stock has a 50-day moving average price of $185.57 and a 200-day moving average price of $191.89. The company has a current ratio of 1.02, a quick ratio of 0.78 and a debt-to-equity ratio of 0.48. The firm has a market cap of $282.76 billion, a PE ratio of 39.37, a PEG ratio of 2.65 and a beta of 0.30.

RTX Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 14th will be given a dividend of $0.73 per share. The ex-dividend date is Friday, August 14th. This represents a $2.92 annualized dividend and a yield of 1.4%. RTX's dividend payout ratio (DPR) is 54.78%.

Trending Headlines about RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: RTX beat second-quarter estimates with adjusted EPS of $1.89 versus $1.66 expected and revenue of $24.71 billion versus $22.89 billion expected, driven by strong commercial aftermarket and defense demand. RTX Q2 Earnings Outpace Estimates, Revenues Increase Y/Y
• Positive Sentiment: The company raised 2026 guidance, now expecting adjusted EPS of $7.10 to $7.25 and sales of about $95.5 billion to $96.0 billion, both above prior targets and analyst expectations. RTX Reports Q2 2026 Results
• Positive Sentiment: Backlog rose to a record $289 billion, reinforcing confidence in future revenue from commercial aviation and defense programs. RTX raises 2026 guidance after double-digit sales growth drives Q2 results
• Positive Sentiment: Pratt & Whitney reported more than 800 GTF engine orders and commitments year to date, adding to a backlog of more than 8,000 engines and signaling durable demand. RTX's Pratt & Whitney GTF™ engines surpass 800 orders and commitments in 2026, year to date
• Neutral Sentiment: RTX also highlighted progress in hybrid-electric aviation testing and new aerospace partnerships at Farnborough, which support the long-term innovation story but are less likely to move the stock immediately. RTX advances hybrid-electric aviation at The Grid

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Gerber Kawasaki Wealth & Investment Management raised its stake in shares of RTX by 0.8% in the fourth quarter. Gerber Kawasaki Wealth & Investment Management now owns 7,594 shares of the company's stock worth $1,393,000 after purchasing an additional 61 shares during the last quarter. Quarry LP grew its holdings in RTX by 9.0% during the third quarter. Quarry LP now owns 787 shares of the company's stock worth $132,000 after buying an additional 65 shares in the last quarter. Twin Focus Capital Partners LLC raised its position in RTX by 1.2% in the 4th quarter. Twin Focus Capital Partners LLC now owns 5,517 shares of the company's stock valued at $1,012,000 after buying an additional 67 shares during the last quarter. Navis Wealth Advisors LLC raised its position in RTX by 2.2% in the 3rd quarter. Navis Wealth Advisors LLC now owns 3,109 shares of the company's stock valued at $520,000 after buying an additional 68 shares during the last quarter. Finally, Caxton Associates LLP lifted its stake in RTX by 0.8% during the 3rd quarter. Caxton Associates LLP now owns 8,704 shares of the company's stock valued at $1,456,000 after acquiring an additional 70 shares in the last quarter. Institutional investors own 86.50% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Erste Group Bank lowered shares of RTX from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Wells Fargo & Company began coverage on RTX in a research report on Wednesday, April 1st. They set an "equal weight" rating and a $200.00 price target for the company. Wall Street Zen lowered RTX from a "strong-buy" rating to a "buy" rating in a research report on Sunday, April 26th. Citigroup reissued a "buy" rating on shares of RTX in a report on Wednesday, June 17th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of RTX in a research note on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $211.38.

About RTX

RTX NYSE: RTX is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX's operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

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