RTX (RTX) Stock Surges 3% Following Stellar First Quarter Performance

Key Highlights

• RTX delivered Q1 adjusted earnings per share of $1.78, surpassing the Street’s $1.51 expectation by $0.27
• Quarterly revenues reached $22.1 billion, marking a 9% annual increase and exceeding projections
• Free cash flow surged 65% from the prior year period to $1.3 billion
• Management elevated full-year adjusted earnings guidance to a range of $6.70–$6.90
• Raytheon division revenues expanded 10% to $6.9 billion, propelled by robust demand for land and air defense systems

RTX Corporation delivered first-quarter 2026 results that exceeded analyst projections, propelling shares higher by over 3% during pre-market hours.

The aerospace and defense giant reported adjusted earnings of $1.78 per share, handily beating the Street consensus of $1.51 by a margin of $0.27. Revenues totaled $22.1 billion, representing a 9% increase compared to the year-ago quarter and surpassing the $21.44 billion forecast.

RTX Corporation, RTX

Adjusted net earnings climbed 22% to reach $2.4 billion. The company generated $1.3 billion in free cash flow during the quarter, marking a substantial 65% jump year-over-year — a metric that typically resonates with investors.

Chief Executive Chris Calio attributed the performance to strong execution and backlog conversion. “RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments,” he noted.

Each of the company’s three primary divisions — Collins Aerospace, Pratt & Whitney, and Raytheon — delivered revenue expansion.

Raytheon Capitalizes on Rising Defense Spending

Raytheon’s quarterly revenues advanced 10% to $6.95 billion, fueled by increased volume in land and air defense platforms. The Department of Defense continues prioritizing the replenishment of weapons inventories that have been depleted by support for operations connected to the Ukraine conflict and Israel’s military activities in Gaza.

Last month, RTX secured a substantial $3.7 billion contract to manufacture Patriot GEM-T interceptor missiles destined for Ukraine. Such agreements highlight the robust demand environment currently benefiting Raytheon.

Washington has allocated billions toward artillery shells, ammunition, and anti-armor weapons systems following Russia’s 2022 invasion of Ukraine. Defense industry players stand to gain as the Pentagon accelerates efforts to restore its arsenals.

Commercial Aftermarket Strength Drives Pratt & Whitney Growth

Pratt & Whitney revenues increased 11% to $8.2 billion, with commercial aftermarket sales jumping 19%. Airlines are extending the service life of existing aircraft amid persistent delivery bottlenecks and supply-chain constraints, creating heightened demand for maintenance services — translating directly into stronger revenues for P&W.

This growth comes even as the division navigates strained relations with Airbus, which claimed in early 2026 that Pratt & Whitney failed to meet engine delivery commitments while redirecting units to maintenance facilities. Airbus is pursuing potential compensation, based on March reporting from Reuters.

Collins Aerospace recorded a 5% revenue gain to $7.6 billion, driven by a 15% increase in commercial original equipment sales and 7% growth in commercial aftermarket.

RTX increased its full-year 2026 adjusted earnings per share outlook to $6.70–$6.90, up from the previous $6.60–$6.80 range. The updated midpoint of $6.80 trails slightly behind the analyst consensus estimate of $6.84.

Full-year revenue guidance was also elevated to $92.5–$93.5 billion from the prior $92.0–$93.0 billion range. The new midpoint of $93.0 billion comes in just under the Street consensus of $93.5 billion.

RTX shares climbed 3.35% in pre-market activity following the quarterly release.

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