RTX (RTX) Q3 2026 Earnings Report
MX:RTX Q3 2026 EPS Results
- Actual EPS
- MXN 41.93
- Consensus EPS
- MXN 33.03
- Beat/Miss
- Beat by +MXN 8.91
- One Year Ago EPS
- MXN 31.54
MX:RTX Q3 2026 Revenue Results
- Actual Revenue
- MXN 463.22B
- Expected Revenue
- MXN 447.34B
- Beat/Miss
- Beat by +MXN 15.88B
- YoY Revenue Growth
- +11.06%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/20/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 20, 2026
MX:RTX Upcoming Earnings
RTX's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:RTX Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. RTX reported broad-based sales, profit, backlog, bookings, and cash-flow growth; raised full-year sales, EPS, and free cash flow guidance; and highlighted robust commercial aerospace and defense demand. The company also described significant operational improvements, capacity expansion, and longer-term margin opportunities. Risks included Pratt's commercial OE decline, airline fuel-cost and flight-activity pressures, supply-chain constraints, defense-budget uncertainty, and some expected fourth-quarter margin and cash-flow headwinds, but these issues were presented alongside continued execution and strong demand.
Company Guidance
RTX raised its full year adjusted sales outlook to a new range of $97 billion to $97.5 billion from $95 billion to $96 billion, with organic sales growth of between 10% to 11% versus between 8% to 9%; commercial OE sales are expected to grow high single digits, commercial aftermarket sales low double digits to low teens, and defense sales low double digit growth versus high single digits previously. Adjusted EPS is expected to be between $7.65 and $7.75 versus $7.10 to $7.25, and free cash flow between $9.0 billion and $9.2 billion versus $8.5 billion to $8.75 billion. Collins expects adjusted sales to grow high single digits and organic sales low double digit growth, with operating profit growth between $925 million and $975 million; Pratt expects adjusted and organic sales to grow high single digits and operating profit growth between $475 million and $525 million; and Raytheon expects adjusted and organic sales to grow low teens and operating profit growth between $800 million and $850 million. RTX expects another year of top and bottom line growth, improving operational margins, and strong free cash flow generation, while Pratt expects low double digit increases in shop visits as it goes into 2027 and beyond and has talked about low to mid teens margins over the longer term.
- Strong Third-Quarter Companywide ResultsAdjusted sales were $25 billion, up 11% year over year on an adjusted basis and 12% organically, with commercial OE up 10%, commercial aftermarket up 16%, and defense up 10%. Adjusted segment operating profit was $3.9 billion, up 39%, while adjusted EPS was $2.26, up $0.56 or 33% year over year. Free cash flow was $2.1 billion.
- Record Backlog and Robust BookingsRTX ended Q3 with a record backlog of $340 billion, up 36% year over year and 18% sequentially. The company booked nearly $59 billion in defense awards with a 4.57x book-to-bill and more than $22 billion of commercial orders, up over 60% year over year.
- Major Raytheon Munitions AwardsRaytheon converted framework agreements into multiyear production contracts, including approximately $23 billion for Tomahawk and over $14 billion for AMRAAM. Additional multiyear contracts were signed for SM-6 and SM-3 IIA. The combined value of the converted agreements was described as approximately $70 billion, providing almost a decade of demand visibility and production-rate potential of 2x to 4x.
- Commercial Aerospace Demand and OrdersCommercial aerospace demand remained resilient, with increasing OE production rates on key platforms. Pratt received more than 800 GTF orders and commitments year to date and has a backlog of over 8 thousand engines. British Airways selected the GTF to power up to 60 A320neo family aircraft, adding another GTF operator.
- Resilient Commercial AftermarketCommercial aftermarket sales grew 16% organically in Q3 despite global RPKs declining slightly year over year. MRO demand remained strong, engine retirements were in line with expectations, and business jet departures were up year to date. The company cited a growing installed base, out-of-warranty flight hours, and pricing as fundamentals supporting medium- and long-term aftermarket growth.
- Collins Aerospace Growth and Margin ExpansionCollins sales were $8.4 billion, up 10% on an adjusted basis and 12% organically. Excluding divestitures, commercial OE sales rose 23%, commercial aftermarket sales increased 9%, including mods and upgrades up 18%, provisioning up 12%, and parts and repair up 7%; defense sales increased 7%. Adjusted operating profit rose $594 million, and margins expanded 560 basis points year over year.
- Collins Structural Cost ActionsCollins is consolidating operations, increasing manufacturing hours at best-cost locations, and reducing overhead layers. The company said Collins delivered double-digit organic sales growth while reducing indirect labor headcount, and that the structural cost actions were in their relatively early stages and expected to continue compounding over time.
- Pratt GTF Aftermarket PerformancePratt sales were $9.2 billion, up 10% on both an adjusted and organic basis. Commercial aftermarket sales increased 21%, primarily driven by higher GTF MRO volume. PW1100 MRO output increased over 35% year over year in Q3 and over 30% year to date, while Pratt remained on track for approximately 800 shop visits in 2026.
- GTF Advantage and Hot Section Plus ProgressThe first GTF Advantage-powered aircraft was delivered to United Airlines and entered service earlier in the month. The Advantage is expected to double time-on-wing performance. Pratt is progressing certification of the Hot Section Plus package, which is expected to bring 90% to 95% of the Advantage time-on-wing benefit to the installed base, with incorporation into MRO visits expected to begin early next year.
- Raytheon Growth and ProductivityRaytheon sales were $8 billion, up 14% on both an adjusted and organic basis, driven by naval programs and land and air defense systems including Patriot, Standard Missile, and Tomahawk. Adjusted operating profit increased $275 million to $1.1 billion, driven by improved productivity, higher volume, and favorable mix. Raytheon margins expanded 190 basis points.
- Raytheon Bookings and International DemandRaytheon bookings were $52.3 billion, resulting in a 6.54x book-to-bill and a $130 billion backlog; its rolling 12-month book-to-bill was 2.9x. Key awards included $3.1 billion for British Army training systems, $3 billion of classified awards, and $1.8 billion for SPY-6 production. International bookings were up 1.5 times year to date year over year, with $9 billion of international orders booked in Q3. International business represented 37% of total backlog, or 52% excluding the Tomahawk and AMRAAM munitions contracts.
- Munitions Output and Capacity ExpansionYear-to-date output across Raytheon's critical munitions was up over 90% year over year, while material receipts increased double digits. Raytheon completed a $50 million expansion of its Forest, Mississippi manufacturing facility to support production ramps for the next-generation jammer program and other radar systems, and is making incremental supply-chain and operating investments to support higher munitions production rates.
- AI and Digital Operations DeploymentRTX is deploying AI and digital tools across its operations. Pratt's AI-powered engine inspection software has reduced overall inspection time by more than 30% where deployed. Collins is using AI in products to assist air traffic controllers, and Raytheon has fielded sensors using AI to identify objects and classify threats.
- Technology Investment and New CapabilitiesRTX invested $2.8 billion in company- and customer-funded research and development and CapEx during the quarter. Collins completed altitude testing of its next-generation enhanced power and cooling system, ePACS, for potential use on the F-35 and other future defense and commercial aircraft. Raytheon is also developing a composable weapons strategy using proven technologies from different programs to develop solutions on an accelerated timeline.
- Commercial Capacity and Partnership ExpansionCollins entered a partnership with Etihad Engineering that will double its nacelle-services footprint in the Middle East and support growing A350 and 787 fleets. Pratt announced an expansion of precision-parts manufacturing in Poland to increase complex-component assembly capacity for commercial and military engines, including the GTF and F-35.
- Raised Full-Year Sales GuidanceRTX raised its full-year adjusted sales outlook to $97 billion to $97.5 billion from the prior range of $95 billion to $96 billion. Full-year organic sales growth is now expected to be 10% to 11%, up from 8% to 9%, driven by continued defense performance, Collins commercial OE strength, and higher Pratt GTF aftermarket volume.
- Raised Full-Year EPS and Free Cash Flow GuidanceFull-year adjusted EPS guidance increased to $7.65 to $7.75 from $7.10 to $7.25. Full-year free cash flow guidance increased to $9.0 billion to $9.2 billion from $8.5 billion to $8.75 billion. Management attributed the EPS increase primarily to approximately 28 cents of company performance and approximately 25 cents of IEEPA recovery, and the free cash flow increase primarily to EBITDA recovery.
- Segment Outlook ImprovementsCollins now expects adjusted sales growth in the high single digits and organic growth in the low double digits, while operating profit growth is expected to be $925 million to $975 million versus 2025. Pratt expects high-single-digit sales growth and operating profit growth of $475 million to $525 million versus 2025. Raytheon expects low-teens adjusted and organic sales growth and operating profit growth of $800 million to $850 million versus 2025.
- Longer-Term Margin and Cash Flow OpportunitiesManagement said Raytheon's munitions contracts have the potential to support margin expansion as production scales. Pratt is expected to deliver a free cash flow tailwind over the next three years as more GTF shop visits become paying shop visits, with low-double-digit increases in shop-visit inductions expected in 2027 and beyond. Pratt's longer-term margin potential was described as low to mid teens, with gradual growth expected over the next five years.
- Defense Demand and Backlog VisibilityManagement cited broad support for increased U.S. defense spending, including expanded munitions depth and integrated air and missile defense capabilities. International defense budgets are expected to grow across Europe, Asia Pacific, and MENA, including significant spending by Germany, Poland, and Japan. Despite the U.S. continuing resolution, management said the record backlog provides visibility into fourth-quarter and next-year sales expectations.
- Free Cash Flow Outlook and Contract FundingManagement expects RTX to generate 90% to 100% of free cash flow to adjusted net income. The munitions contracts include a collaborative funding approach that is expected to preserve upfront free cash flow, and management characterized the framework-related investments as largely cash neutral as the company moves toward 2027.
MX:RTX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 26, 2027 | 2026 (Q4) | 34.14- | 28.76 | ― | ― |
| Oct 20, 2026 | 2026 (Q3) | 33.0341.93 | 31.54 | 32.94% (+10.39) | |
| Jul 23, 2026 | 2026 (Q2) | 30.7835.07 | 28.95 | 21.15% (+6.12) | |
| Apr 21, 2026 | 2026 (Q1) | 28.1133.03 | 27.28 | 21.09% (+5.75) | |
| Jan 27, 2026 | 2025 (Q4) | 27.3128.76 | 28.57 | 0.65% (+0.19) | |
| Oct 21, 2025 | 2025 (Q3) | 26.2031.54 | 26.9 | 17.24% (+4.64) | |
| Jul 22, 2025 | 2025 (Q2) | 26.7628.95 | 26.16 | 10.64% (+2.78) | |
| Apr 22, 2025 | 2025 (Q1) | 25.0927.28 | 24.86 | 9.70% (+2.41) | |
| Jan 28, 2025 | 2024 (Q4) | 25.6428.57 | 23.94 | 19.38% (+4.64) | |
| Oct 22, 2024 | 2024 (Q3) | 24.9226.90 | 23.19 | 16.00% (+3.71) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
