RTX (RTX) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 sales of $24.7B, up 14–16% year-over-year and 16% organically, with adjusted EPS of $1.89, up 21% year-over-year, and net income attributable to common shareowners of $2.1B.

• Free cash flow reached $2.9B, operating cash flow was $3.5B, and backlog hit a record $289B, up 22% year-over-year, with $170B commercial and $119B defense.

• Raised full-year 2026 outlook for adjusted sales ($95–$96B), EPS ($7.10–$7.25), and free cash flow ($8.5–$8.75B) based on strong execution and demand.

• Announced agreement to sell Blue Canyon Technologies for $620M.

• All segments contributed to growth, with robust commercial aftermarket and defense demand.

Financial highlights

• Adjusted segment operating profit was $3.2B–$3.36B, up 18%, with segment margins expanding 40 bps to 12.4%.

• GAAP EPS from continuing operations was $1.57, including $0.27 of acquisition accounting adjustments and $0.05 of restructuring and other non-recurring items.

• Net income attributable to common shareowners was $2.1B for Q2.

• Cash flow from operations for Q2 was $3.5B; free cash flow was $2.9B.

• Backlog: $289B, up 22% year-over-year.

Outlook and guidance

• Full-year 2026 adjusted sales outlook raised to $95B–$96B (from $92.5B–$93.5B), with organic sales growth now expected at 8–9%.

• Adjusted EPS guidance increased to $7.10–$7.25 (from $6.70–$6.90), and free cash flow outlook raised to $8.5B–$8.75B.

• Commercial OE sales expected to grow mid- to high-single-digits, aftermarket sales low double-digits, and defense sales high-single-digits.

• Management expects continued growth in both commercial aerospace and defense, supported by record backlog and strong bookings.

• Full-year cash impact from the Powder Metal Matter estimated at $0.7B.