RTX Shares Surge as Q1 Earnings Beat and Raised 2026 Guidance Signal Defense Strength
RTX Corporation (RTX) shares climbed 2.20% in Tuesday’s pre-market session after the aerospace leader delivered a robust first-quarter earnings beat and raised its full-year 2026 outlook. The company reported adjusted earnings per share of $1.78, significantly outpacing analyst estimates of $1.51, fueled by a massive $271 billion backlog and surging demand across its defense and commercial segments.
Top-Line Growth and Earnings Outperformance
RTX reported first-quarter 2026 revenue of $22.1 billion, representing a 9% increase over the prior year and surpassing the $21.38 billion anticipated by Wall Street. The growth was even more pronounced on an organic basis, which rose 10% year-over-year. The bottom line showed significant strength, with adjusted (non-GAAP) EPS of $1.78 coming in $0.27 ahead of the $1.51 consensus estimate. GAAP EPS for the quarter was $1.51, which included $0.27 of acquisition accounting adjustments.
The stock responded immediately to the results, trading at $200.75 in the pre-market, up from a previous close of $196.42. Investors are reacting to the company's ability to convert its record-high backlog into tangible growth despite ongoing global supply chain complexities and macroeconomic headwinds.
Segment Strength: Pratt & Whitney Leads the Way
The company’s Pratt & Whitney division was a standout performer in the first quarter, with sales jumping 11% to $8.17 billion. This growth was supported by higher volume in both commercial and defense sectors. Collins Aerospace also showed resilience, reporting sales of $7.60 billion, up 5% year-over-year. Within the Collins segment, defense sales grew by 9%, highlighting the sustained global demand for modernized military capabilities and electronic systems.
RTX Chairman and CEO Chris Calio attributed the strong start to the year to a "continued focus on execution and delivering our backlog." Calio noted that the company is making significant investments to increase output and accelerate the fielding of new capabilities to meet the urgent needs of defense customers.
Raised Outlook and Backlog Visibility
Perhaps the most significant catalyst for the stock's 2.20% move was the upward revision of the 2026 full-year outlook. RTX now expects adjusted sales between $92.5 billion and $93.5 billion, up from the previous range of $92.0 billion to $93.0 billion. The adjusted EPS forecast was also lifted to a range of $6.70 to $6.90, compared to the prior guidance of $6.60 to $6.80.
The company’s total backlog now stands at a staggering $271 billion, which includes $162 billion in commercial orders and $109 billion in defense. This provides a multi-year runway for revenue and earnings, a factor that analysts frequently cite as a key differentiator for RTX in a volatile industrial environment.
Cash Flow and Capital Allocation
RTX generated $1.9 billion in operating cash flow during the quarter, resulting in free cash flow of $1.3 billion—a 65% increase over the $792 million reported in the same period last year. This strong cash position supports the company’s ongoing R&D investments and its commitment to returning value to shareholders. With defense spending remaining a global priority, RTX appears well-positioned to maintain its upward trajectory through the remainder of 2026.
Key Takeaways
- RTX reported adjusted EPS of $1.78, beating the $1.51 consensus estimate by $0.27.
- Full-year 2026 adjusted sales guidance was raised to a range of $92.5B–$93.5B.
- Total backlog reached a record $271 billion, providing long-term revenue visibility.
- Pratt & Whitney led segment growth with an 11% increase in sales to $8.17 billion.
- Pre-market stock price rose 2.20% to $200.75 following the earnings release.