RTX Corporation Shs (RTX) Q3 2026 Earnings Report
TSE:RTX Q3 2026 EPS Results
- Actual EPS
- CAD 2.64
- Consensus EPS
- ―
- Beat/Miss
- ―
- One Year Ago EPS
- CAD 1.94
TSE:RTX Q3 2026 Revenue Results
- Actual Revenue
- CAD 34.95B
- Expected Revenue
- ―
- Beat/Miss
- ―
- YoY Revenue Growth
- +12.90%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/20/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 20, 2026
RTX Corporation Shs's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive. RTX reported broad-based double-digit organic sales growth, higher operating profit and margins, record backlog and defense bookings, resilient commercial aftermarket demand, and raised full-year sales, EPS, and free cash flow guidance. Management also highlighted substantial multiyear defense demand, GTF operational progress, international orders, productivity gains, and continued investment in capacity and technology. The principal challenges were supply-chain constraints, defense budget and legislative uncertainty, near-term cash flow headwinds, Pratt commercial OE mix pressure, and a projected Collins fourth-quarter margin pullback, but these issues were presented alongside confidence in the updated outlook and longer-term growth opportunities.
RTX raised its full year adjusted sales outlook to a new range of $97 billion to $97.5 billion, organic sales growth to between 10% to 11%, adjusted EPS to between $7.65 and $7.75, and free cash flow to between $9.0 billion and $9.2 billion; by channel, 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. Collins expects adjusted sales to grow high single digits, organic sales low double digit growth, and operating profit growth between $925 million and $975 million versus 2025; Pratt expects adjusted and organic sales to grow high single digits, most likely towards the top half of this range, and operating profit growth between $475 million and $525 million versus 2025; Raytheon expects adjusted and organic sales to grow low teens and operating profit growth between $800 million and $850 million versus 2025. Management expects Pratt margins to reach low to mid teens margins over the longer term, with gradual growth through the next 5 years, Pratt to be a tailwind to RTX's free cash flow over the next 3 years, and munitions production rates to increase 2x to 4x, with the ramp starting over the next 2 years in earnest and continuing through 2030.
- Strong Third-Quarter Financial PerformanceAdjusted sales were $25 billion, up 11% year over year on an adjusted basis and 12% organically, with double-digit growth across commercial OE, commercial aftermarket, and defense. Adjusted EPS was $2.26, up $0.56 or 33% year over year, and free cash flow was $2.1 billion.
- Expanded Operating Profit and MarginsAdjusted segment operating profit increased 39% year over year to $3.9 billion. Segment margins expanded 310 basis points year over year, including approximately 160 basis points from IEEPA cost recovery. Operational segment profit growth contributed approximately $0.43 to adjusted EPS.
- Record Backlog and Defense BookingsRTX ended the quarter with a record $340 billion backlog, up 36% year over year and 18% sequentially. Defense bookings were nearly $59 billion with a 4.57x book-to-bill, including approximately $23 billion for Tomahawk and more than $14 billion for AMRAAM.
- Raytheon Defense MomentumRaytheon 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, margins expanded 190 basis points, and quarterly bookings were $52.3 billion with a 6.54x book-to-bill and a $130 billion backlog.
- Munitions Production and Multiyear Contract OpportunityOutput across critical munitions increased more than 90% year over year. Framework agreements were converted into undefinitized contracts with approximately $70 billion in combined value, providing almost a decade of demand visibility and supporting planned production-rate increases of 2x to 4x. Management expects the contracts to begin ramping in earnest over the next two years and continue through 2030 as full-rate production is reached.
- Commercial Aerospace Order GrowthRTX received more than $22 billion of commercial orders in the quarter, representing more than 60% year-over-year growth across OE and aftermarket. Pratt received more than 800 GTF orders and commitments year to date and has a backlog of more than 8,000 engines. Collins commercial orders increased more than 20% year over year.
- Resilient Commercial Aftermarket DemandCommercial aftermarket sales grew 16% organically in the quarter despite global RPKs declining slightly year over year. MRO demand remained strong, engine retirements were in line with expectations, and Collins aftermarket sales increased 9%, including 18% growth in mods and upgrades, 12% growth in provisioning, and 7% growth in parts and repair.
- Collins Aerospace Growth and Margin ExpansionCollins sales were $8.4 billion, up 10% on an adjusted basis and 12% organically. Commercial OE sales excluding divestitures increased 23%, defense sales increased 7%, and adjusted operating profit rose $594 million to $1.8 billion. Collins margins expanded 560 basis points year over year, including structural cost actions and 300 basis points of IEEPA benefit.
- Pratt Aftermarket and GTF ProgressPratt sales were $9.2 billion, up 10% on both an adjusted and organic basis, driven by commercial aftermarket growth of 21%, primarily from higher GTF MRO volume. PW1100 MRO output increased more than 35% year over year in the quarter and more than 30% year to date. The first GTF Advantage-powered aircraft entered service with United Airlines, and the Hot Section Plus upgrade is expected to return 90% to 95% of the Advantage time-on-wing benefit to the installed base.
- Improved Full-Year OutlookRTX raised its full-year adjusted sales outlook to $97 billion to $97.5 billion from $95 billion to $96 billion, with organic sales growth now expected between 10% and 11% versus 8% to 9% previously. Adjusted EPS guidance increased to $7.65 to $7.75 from $7.10 to $7.25, and free cash flow guidance increased to $9.0 billion to $9.2 billion from $8.5 billion to $8.75 billion.
- Raised Segment OutlooksCollins now expects adjusted sales growth in the high single digits and organic growth in the low double digits, with operating profit growth of $925 million to $975 million versus 2025. Pratt expects high single-digit adjusted and organic sales growth and operating profit growth of $475 million to $525 million. Raytheon expects low-teens adjusted and organic sales growth and operating profit growth of $800 million to $850 million.
- Operational Productivity ImprovementsRaytheon net productivity improved by $104 million year over year, including approximately $85 million from an international contract modification and a favorable offset-obligation adjustment. AI-powered engine inspection software reduced overall inspection time by more than 30% where deployed. Collins is consolidating operations, increasing manufacturing hours at best-cost locations, and reducing overhead layers while lowering indirect labor headcount.
- Continued Investment in Technology and CapacityRTX invested $2.8 billion in company- and customer-funded research and development and capital expenditures during the quarter. Investments included a $50 million Raytheon manufacturing expansion in Forest, Mississippi, incremental munitions capacity investments, Pratt precision-parts manufacturing expansion in Poland, and technology development involving AI, machine learning, ePACS, and composable weapons.
- Strong International Defense DemandInternational bookings at Raytheon were up 1.5 times year to date year over year. International business represented 37% of total backlog and 52% excluding the Tomahawk and AMRAAM munitions contracts. Raytheon booked $9 billion of international orders in the quarter, while defense budgets are expected to grow across Europe, Asia Pacific, and MENA.
- Positive Longer-Term Cash Flow OutlookManagement expects RTX to generate 90% to 100% of free cash flow to adjusted net income. Pratt is expected to be a free-cash-flow tailwind over the next three years as pay-at-shop-visit GTF overhauls increase, with low double-digit increases in shop visits expected from 2027 and beyond.
TSE:RTX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 26, 2027 | 2026 (Q4) | ―- | 1.66 | ― | ― |
| Oct 20, 2026 | 2026 (Q3) | ―2.64 | 1.94 | 35.96% (+0.70) | |
| Jul 23, 2026 | 2026 (Q2) | ―2.17 | 1.7 | 27.96% (+0.47) | |
| Apr 21, 2026 | 2026 (Q1) | ―2.07 | 1.63 | 27.07% (+0.44) | |
| Jan 27, 2026 | 2025 (Q4) | ―1.66 | 1.54 | 8.14% (+0.13) | |
| Oct 21, 2025 | 2025 (Q3) | ―1.94 | 0.26 | 644.83% (+1.68) | |
| Jul 22, 2025 | 2025 (Q2) | ―1.70 | 0.02 | 8375.00% (+1.68) | |
| Apr 22, 2025 | 2025 (Q1) | ―1.63 | 0.3 | 439.40% (+1.33) | |
| Jan 28, 2025 | 2024 (Q4) | ―1.54 | 0.25 | 514.40% (+1.29) | |
| Oct 22, 2024 | 2024 (Q3) | ―1.49 | -0.16 | 1031.88% (+1.65) |
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.
