Key Highlights
- Second quarter EPS of $1.89 exceeded analyst expectations of $1.66 by $0.23
- Quarterly revenue reached $24.7 billion with 16% organic growth, surpassing the $22.88 billion forecast
- Annual EPS outlook increased to $7.10ā$7.25 range, up from previous $6.70ā$6.90 projection
- Full-year revenue forecast upgraded to $95ā$96 billion; organic growth now projected at 8ā9%
- Order backlog expanded 22% to reach $289 billion, with $170 billion coming from commercial sector
Shares of RTX Corp surged 5.8% during Thursday’s premarket session following the aerospace and defense giant’s impressive second-quarter performance that exceeded expectations on multiple fronts, accompanied by an upward revision to its annual forecast.
As of 6:21 a.m. ET, the stock had gained 5.8%.
For the second quarter, RTX delivered adjusted EPS of $1.89, comfortably surpassing the Street’s $1.66 projection by $0.23. The company’s quarterly revenue totaled $24.7 billion, representing a 14.5% year-over-year improvement and exceeding the consensus estimate of $22.88 billion by $1.82 billion.
The quarter generated $2.9 billion in free cash flow, while operating cash flow reached $3.5 billion.
According to CEO Chris Calio, the organization is “exceptionally well positioned to drive continued growth” as it processes its substantial backlog, enhances production capacity, and delivers innovative technologies to its customer base.
Raised Projections Across the Board
RTX elevated its 2026 full-year adjusted EPS forecast to a range of $7.10ā$7.25, an increase from the earlier $6.70ā$6.90 guidance, and exceeding the analyst consensus of $6.92.
The company’s revenue outlook was upgraded to $95ā$96 billion, compared to the previous $92.5ā$93.5 billion range, versus analyst expectations of $94.1 billion.
Management now anticipates organic sales expansion of 8ā9%, a significant improvement from the earlier 5ā6% forecast.
The free cash flow projection also received a modest boost to $8.50ā$8.75 billion, up from the prior $8.25ā$8.75 billion guidance.
Record Backlog Reaches $289 Billion
RTX’s total order backlog increased 22% quarter-over-quarter to $289 billion. The portfolio consists of $170 billion in commercial aerospace orders alongside $119 billion in defense contracts.
This substantial backlog represents a significant indicator of sustained future revenue ā it demonstrates years of secured business ahead.
From a valuation perspective, RTX is currently trading at a P/E multiple of 36.56, considerably higher than its historical median of 27.4. According to GuruFocus’s GF Value assessment, the stock appears significantly overvalued.
Corporate insiders have divested roughly $43.86 million worth of shares during the trailing twelve months, with zero insider purchases recorded during that timeframe.
The company’s GF Score registers at 84 out of 100, featuring a Growth Rank of 8/10 and a Profitability Rank of 7/10. RTX’s current market capitalization stands at approximately $262.44 billion.
With a Piotroski F-Score of 8, the company demonstrates solid financial health as it enters the latter half of 2026.
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