RTX Corporation (NYSE: RTX) lifted its full-year 2026 sales and profit guidance, citing sustained demand for commercial aircraft maintenance and military weapons systems across global markets.
The aerospace and defense giant now projects adjusted sales between $95 billion and $96 billion, up sharply from its prior estimate of $92.5 billion to $93.5 billion, beating Wall Street’s average forecast of $94.08 billion.
Full-year adjusted earnings per share are now expected in the range of $7.10 to $7.25, compared to the previous guidance of $6.70 to $6.90, and well above analysts’ consensus estimate of $6.92 per share.
The upgraded outlook followed a strong second-quarter earnings report on July 23, where RTX beat Wall Street estimates on both revenue and profit by meaningful margins.
Quarterly revenue reached $24.7 billion, representing 14% year-over-year growth, while adjusted EPS came in at $1.89, a 21% increase compared to the same period last year.
The Pratt & Whitney unit, which manufactures engines for Airbus jets and the F-35 fighter, posted a 16% increase in sales to $8.89 billion during the quarter.
The Raytheon defense business recorded 18% sales growth driven by robust demand for air and missile defense systems, including Patriot, Standard, and AMRAAM missiles, amid ongoing global conflicts.
Collins Aerospace, the company’s advanced aviation systems division, contributed an 8% sales increase, rounding out broad-based strength across all three major business segments.
RTX’s total backlog expanded 22% from the prior year’s period to $289 billion, including $170 billion in commercial aerospace orders and $119 billion tied to defense contracts.
Operating cash flow during the quarter reached $3.5 billion, translating into free cash flow of $2.9 billion, though CFO Neil Mitchill acknowledged that part of this improvement reflected catching up on delayed engine deliveries from the prior year.
Supply chain constraints and delayed aircraft deliveries from Boeing and Airbus have created a shortage of new commercial jets, compelling airlines to spend heavily on maintenance, repair, and overhaul services.
Pratt & Whitney announced investments of over $100 million across three MRO facilities in Texas, Florida, and Arkansas to meet the growing demand from airlines operating older fleets.
On the defense side, governments worldwide continue restocking weapons inventories as the Russia-Ukraine war persists and tensions in the Middle East remain elevated, directly benefiting RTX’s Raytheon unit.
Following the earnings report, UBS analyst Gavin Parsons raised the firm’s price target on RTX to $215 from $198 while reiterating a Neutral rating, noting elevated valuation and aftermarket headwinds as key items to watch.
Morgan Stanley raised its price target by $20 to $240 per share and maintained an Overweight rating, stating the beat-and-raise quarter reflected the company’s continuing growth story and strong execution.
Morgan Stanley’s analysts added that the firm believes RTX is positioned well for the second half of the year and heading into 2027, underscoring confidence in the company’s operational trajectory.
As of July 25, Wall Street’s consensus rating on the stock stands at Moderate Buy, with an average share price upside potential of approximately 6% from current levels.
Institutional investors significantly increased their stake in RTX during the first quarter, with hedge fund ownership jumping 20% sequentially from 79 funds to 95 funds holding positions.
As of March 31, 2026, Fisher Asset Management holds the largest institutional stake with 22,244,732 shares valued at approximately $4.3 billion, followed by Balyasny Asset Management at $428 million and Point72 Asset Management at roughly $395 million.
RTX shares trade at a forward price-to-earnings ratio of 29.83, above the sector median of 20.94 and the company’s own five-year average of 21.49, suggesting the market already prices in a premium for its growth prospects and backlog visibility.
