Key Takeaways
- RTX delivered Q1 adjusted earnings per share of $1.78, surpassing the Street’s $1.51 forecast by $0.27
- Quarterly sales reached $22.1 billion, marking a 9% year-over-year increase and exceeding projections
- The company generated $1.3 billion in free cash flow, representing a 65% year-over-year surge
- Management upgraded full-year adjusted EPS outlook to a range of $6.70–$6.90
- Defense segment Raytheon experienced 10% sales growth to $6.9 billion, fueled by robust demand for land and air defense systems
RTX Corporation delivered first-quarter 2026 results that significantly exceeded analyst projections, propelling shares higher by more than 3% during pre-market hours.
The aerospace and defense conglomerate reported adjusted earnings of $1.78 per share, handily beating the Street consensus estimate of $1.51 by a margin of $0.27. Quarterly sales totaled $22.1 billion, representing a 9% improvement compared to the prior-year period and surpassing the expected $21.44 billion.
Adjusted net earnings increased 22% to reach $2.4 billion. Meanwhile, free cash flow generation came in at $1.3 billion for the quarter, marking a substantial 65% year-over-year improvement — 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 operating divisions — Collins Aerospace, Pratt & Whitney, and Raytheon — contributed positive growth during the quarter.
Pentagon Spending Fuels Raytheon Performance
The Raytheon defense business saw sales climb 10% to $6.95 billion in the first quarter, powered by increased volume in land-based and airborne defense platforms. The Department of Defense has been actively working to replenish weapons stockpiles that have been depleted due to military operations connected to the ongoing Russia-Ukraine war and Israel’s conflict in Gaza.
Just last month, RTX secured a substantial $3.7 billion contract to deliver Patriot GEM-T interceptor missiles to Ukraine. Such significant awards highlight the robust demand environment that Raytheon currently faces.
Since Russia’s 2022 invasion of Ukraine, the United States has committed billions of dollars toward artillery shells, ammunition, and anti-armor systems. Defense industry contractors stand to gain as the Pentagon executes plans to refill its arsenals.
Airline Maintenance Cycle Boosts Commercial Engine Business
Pratt & Whitney’s revenue advanced 11% to $8.2 billion, with the commercial aftermarket segment posting particularly strong growth of 19%. Airlines are extending the service life of existing aircraft due to new plane delivery constraints and persistent supply-chain disruptions, creating increased demand for engine maintenance services — directly benefiting P&W’s revenue streams.
This growth occurred despite continuing friction with Airbus, which claimed in early 2026 that Pratt & Whitney had overstated engine delivery commitments while redirecting engines to maintenance facilities. According to Reuters coverage from March, Airbus is pursuing potential compensation.
Collins Aerospace recorded a 5% sales gain to $7.6 billion, with commercial original equipment up 15% and commercial aftermarket revenue increasing 7%.
RTX elevated its full-year 2026 adjusted earnings per share guidance to a range of $6.70–$6.90, up from the previous $6.60–$6.80 outlook. The new midpoint of $6.80 trails slightly behind the analyst consensus estimate of $6.84.
The company also increased its full-year revenue projection to $92.5–$93.5 billion from the earlier $92.0–$93.0 billion range. The revised midpoint of $93.0 billion remains modestly below the $93.5 billion Street consensus.
RTX shares traded up 3.35% in pre-market activity following the earnings release.
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