TLDR
- RTX jumps 3.6% to $201 after strong Q4 earnings and revenue beat.
- Full-year sales hit $88.6B, driven by commercial and defense demand.
- Record $268B backlog highlights long-term growth across key markets.
- 2026 guidance signals steady gains in sales, margins, and cash flow.
- GTF progress and higher investment support stronger future performance.
RTX Corporation (RTX) shares advanced in early trade as shares climbed to $201.12, up 3.60%, and the move followed strong financial results. The company reported higher fourth-quarter and full-year performance, and the update reflected rising commercial and defense demand. The outlook for 2026 pointed to steady growth across sales, margins, and cash flow.
Strong Fourth-Quarter and Full-Year Performance
RTX reported sharp revenue gains in the fourth quarter and delivered solid earnings growth across major business segments. The company posted $24.2 billion in quarterly adjusted sales and showed broad expansion across commercial and defense markets. Moreover, the period saw higher operating profit, even as corporate costs and tax rates increased.
Full-year 2025 adjusted sales reached $88.6 billion, reflecting strong commercial aerospace activity and steady defense demand. The year included firm growth in original equipment, aftermarket services, and core defense programs. Additionally, adjusted EPS reached $6.29, while free cash flow rose to $7.9 billion, which marked a sizable increase.
RTX exceeded market expectations as quarterly EPS reached $1.55, surpassing forecasts. Revenue also topped estimates, reinforcing the strength of the company’s operating model. Furthermore, market reaction showed clear support for the company’s execution and outlook.
Growing Backlog and Expanding Demand in Key Markets
RTX ended the year with a record $268 billion backlog that highlighted strong commercial and defense activity. The commercial segment accounted for $161 billion, driven by rising aircraft production and expanding aftermarket activity. The defense segment contributed $107 billion, supported by steady orders across air, land, and missile systems.
The company secured major awards across global defense programs, including air defense systems and radar modernization work. These awards strengthened international demand and expanded the company’s global mix. New engine orders reinforced long-term commercial growth.
Raytheon, Collins, and Pratt & Whitney each reported higher sales across their portfolios. Their performance showed improved volume, stronger aftermarket demand, and better productivity. Additionally, each segment contributed steady operating profit gains.
2026 Guidance, GTF Progress, and Capacity Investments
RTX guided $92 billion to $93 billion in adjusted 2026 sales, reflecting mid-single-digit growth across major segments. Expected EPS of $6.60 to $6.80 showed further margin expansion and lower interest expense. Moreover, free cash flow guidance of $8.25 billion to $8.75 billion reflected stronger operations and lower compensation charges.
The company reported ongoing progress in its geared turbofan fleet management plan. Aircraft-on-ground levels declined, and maintenance output increased across global facilities. Furthermore, expansion of the MRO network supported higher throughput.
RTX also increased investments across manufacturing, engineering, and technology programs. The company allocated more than $10 billion toward CapEx and R&D during 2025. Additionally, it expects $10.5 billion in 2026 as it upgrades facilities and advances next-generation aerospace systems.
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