RTX Corporation (NYSE: RTX) reported first-quarter 2026 results on Tuesday, with shares trading lower following the release. The company beat analyst expectations on both revenue and adjusted EPS.

Adjusted EPS was $1.78, topping the $1.52 estimate, while sales of $22.1 billion exceeded the $21.446 billion estimate. GAAP EPS rose 32% to $1.51 from $1.14, including $0.27 of acquisition accounting adjustments.

Strong Sales And Profit Growth

Sales increased 9% year over year to $22.1 billion, up 10% organically.

Net income attributable to common shareowners rose 34% to $2.1 billion, while adjusted net income increased 22% to $2.4 billion, driven by operating profit growth across all segments as well as lower interest and tax expense.

Operating cash flow rose 42% to $1.9 billion, capital expenditures were $0.5 billion, and free cash flow increased 65% to $1.3 billion.

Cash and cash equivalents were $6.8 billion at quarter-end, and total debt was about $37.4 billion. The backlog stood at $271 billion, including $162 billion in commercial and $109 billion in defense.

Segment Performance Overview

Collins Aerospace sales rose 5% to $7.6 billion, with adjusted operating profit up 6% to $1.3 billion and margin at 17.1%. Growth was driven by higher commercial OE, aftermarket, and defense volume, partially offset by tariff impacts.

Pratt & Whitney sales increased 11% to $8.2 billion. Adjusted operating profit rose 21% to $711 million, with a margin at 8.7%.

Growth was driven by higher commercial aftermarket and military volume, including F135 production, while lower engine deliveries weighed on commercial OE. Tariffs and higher operating costs partially offset gains.

Raytheon sales rose 10% to $6.9 billion. Adjusted operating profit increased 25% to $845 million, with margin improving to 12.2%, driven by higher volume across air and land defense systems, naval programs, a favorable mix, and productivity gains.

Outlook And Guidance

Chairman and CEO Chris Calio said, “RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments, driven by our continued focus on execution and delivering our backlog.”

“Given our first quarter performance and the strength we’re seeing in our defense business, we are increasing adjusted sales and EPS in our full year outlook.”

RTX raised its 2026 adjusted sales outlook to $92.5 billion–$93.5 billion from $92.0 billion–$93.0 billion, compared with the $93.433 billion estimate.

The company expects organic sales growth of 5%–6% in 2026.

It increased adjusted EPS guidance to $6.70–$6.90 from $6.60–$6.80, versus the $6.81 estimate. RTX confirmed free cash flow guidance of $8.25 billion–$8.75 billion.

Conference Call Highlights

RTX said first-quarter book-to-bill was 1.14, and backlog increased 25% year over year. Commercial backlog rose 30% year over year, with additional GTF engine wins from VietJet Air and Finnair.

The company reported defense awards across segments, including more than $3 billion for F135 Lot 19 production at Pratt, nearly $3 billion in awards at Collins, and $6.6 billion in bookings at Raytheon, including Patriot and LTAMDS-related contracts.

Operationally, RTX said PW1100 AOGs declined about 15% from year-end 2025, while PW1100 MRO output increased 23% year over year. GTF-powered aircraft deliveries have surpassed 2,700, with a backlog of about 8,000 engines.

RTX said adjusted segment operating profit rose 14% and segment margin expanded 70 basis points despite tariff headwinds. The company also paid down $500 million of debt in the quarter.

Price Action: RTX shares were trading 3.08% lower at $189.75 at the time of publication on Tuesday.

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