RTX Lifts 2026 Outlook on 16% Organic Sales Growth and $2.9B in Free Cash Flow
RTX sits 43% above its 52-week low of $143.56.
Summary
RTX reported Q2 2026 results with 16% organic sales growth, adjusted EPS of $1.89 (up 21%), and $2.9 billion in free cash flow. The company raised its full-year 2026 outlook across sales, EPS, and free cash flow, and announced a $620 million divestiture.
Key Events · Earnings and Guidance · RTX
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Q2 Sales Surge 14%, Organic Growth 16%
Sales reached $24.7 billion, driven by 26% commercial OE growth at Collins, 25% commercial aftermarket growth at Pratt & Whitney, and 18% defense growth at Raytheon.
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Adjusted EPS Jumps 21% to $1.89
Adjusted EPS of $1.89 beat consensus, with adjusted operating profit up 20% to $3.36 billion, reflecting margin expansion across all three segments.
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Free Cash Flow Swings to $2.9 Billion
Operating cash flow of $3.5 billion less $0.7 billion capex yielded $2.9 billion free cash flow, compared to negative $72 million a year ago, driven by higher earnings and working capital improvements.
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Full-Year 2026 Guidance Raised Across Board
Adjusted sales outlook raised to $95.0-$96.0 billion (from $92.5-$93.5B), adjusted EPS to $7.10-$7.25 (from $6.70-$6.90), and free cash flow tightened to $8.50-$8.75 billion (from $8.25-$8.75B).
Analysis · RTX · Manufacturing
A standout quarter saw RTX deliver 16% organic sales growth, a 21% jump in adjusted EPS, and $2.9 billion in free cash flow — a dramatic swing from negative free cash flow a year ago. All three segments expanded margins, and the company raised its full-year sales, EPS, and free cash flow guidance well above consensus. The $620 million divestiture of Blue Canyon Technologies adds a non-core asset sale tailwind. Against a backdrop of recent Pratt & Whitney engine issues and customer disputes, these results demonstrate operational momentum and strong demand across commercial aftermarket and defense.
At the time of this filing, RTX was trading at $206.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $262.4B. The 52-week trading range was $143.56 to $214.50. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.