NEW YORK, July 23, 2026 – Shares of RTX Corporation (NYSE:RTX) advanced sharply in premarket trading on Wednesday, climbing 5.6% to $205.70 as of 9:00 a.m. EDT, compared to the prior close of $194.88. The broader market showed some weakness, with S&P 500 futures slipping about 0.5%.
The aerospace and defense giant lifted its 2026 adjusted earnings per share (EPS) midpoint by 5.5%, raising the range to $7.10–$7.25 from the previous $6.70–$6.90. Adjusted sales guidance was also increased, with the midpoint rising 2.7% to a range of $95.0–$96.0 billion, up from $92.5–$93.5 billion. The differential between the earnings and sales growth rates signals a key improvement in profit conversion, rather than simply relying on higher volume.
Second-quarter results exceeded analyst expectations. Sales climbed 14% year-over-year to $24.71 billion, while adjusted earnings advanced 21% to $1.89 per share. Analysts polled by LSEG had anticipated $22.9 billion in revenue and $1.66 in adjusted EPS. On a GAAP basis, net income attributable to shareholders rose 29% to $2.14 billion. Free cash flow turned sharply positive, reaching $2.88 billion compared to a negative $72 million in the same period last year.
All three operating segments contributed to the profit margin expansion during the quarter. Pratt & Whitney and Raytheon each added approximately $1.26 billion in quarterly revenue, together accounting for 81% of the segment sales growth. Collins Aerospace contributed the remaining 19%. The backlog swelled to $289 billion, a 22% increase year-over-year, representing roughly three times the midpoint of the updated sales guidance. Commercial orders accounted for $170 billion of that total, while defense orders comprised $119 billion.
Chief Executive Chris Calio commented on the robust demand environment, noting that the backlog has grown 22% year-over-year. Chief Financial Officer Neil Mitchill added that international clients contributed roughly half of Raytheon’s bookings in the first half, with European orders alone totaling $7 billion. Europe represents close to 35% of Raytheon’s bookings for the period.
Pratt & Whitney posted a 16% rise in sales, driven by a favorable profit mix. Commercial aftermarket revenue surged 25%, and military sales advanced 23%. However, sales of commercial original equipment declined 8%. Raytheon reported expansion across land, air, sea, and space defense sectors, with higher volumes for Patriot, Standard Missile, and AMRAAM systems. Adjusted operating profit at Raytheon jumped 29%. Collins Aerospace, the highest-margin business, saw reported sales up 8% and organic growth of 13%, with commercial original equipment revenue rising 26% and aftermarket sales up 10%.
Investors also took note of strength among peers. Lockheed Martin (NYSE:LMT) rose over 5% in premarket after raising its 2026 forecast and disclosing a backlog of $230.4 billion, which is approximately 2.9 times its sales-guidance midpoint. While the business mix of the two companies differs, the positive sentiment lifted the broader defense sector.
Despite the upbeat results, risks remain. Pratt & Whitney’s GTF powder-metal inspections could increase expenses and disrupt airline operations. Additionally, supplier constraints, challenges in contract execution, and shifts in defense budgets may impede the conversion of the record backlog into revenue.
