RTX raises FY outlook as defense and aero demand drive $22B quarter

RTX (NYSE:RTX), the aerospace and defense titan formerly known as Raytheon Technologies, raised its full-year earnings and sales forecasts following a strong first quarter that saw profit margins expand across its entire portfolio.

For the quarter ended March 31, 2026, the Arlington, Virginia-based company reported sales of $22.1 billion, a 9% increase over the previous year and a 10% gain on an organic basis.

Adjusted earnings per share (EPS) reached $1.78, a 21% jump year-over-year, significantly outperforming the consensus Wall Street estimate of $1.51.

The company’s growth was broad-based, with all three primary segments—Collins Aerospace, Pratt & Whitney, and Raytheon—reporting adjusted operating profit increases.

Management highlighted a 19% surge in commercial aftermarket revenue at Pratt & Whitney and strong volume in land and air defense systems, including the Patriot and GEM-T programs, at the Raytheon division.

RTX ended the quarter with a record backlog of $271 billion, comprised of $162 billion in commercial orders and $109 billion in defense contracts.

This massive order book provides significant long-term visibility, even as the company continues to invest in scaling production capacity to meet heightened global security needs.

Buoyed by the quarterly performance, RTX updated its full-year 2026 outlook.

The company now expects adjusted sales of $92.5 billion to $93.5 billion, up from its previous range of $92 billion to $93 billion.

Adjusted EPS guidance was raised to $6.70–$6.90, compared to the prior $6.60–$6.80.

The company also confirmed its full-year free cash flow target remains in the range of $8.25 billion to $8.75 billion.