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RTX raises its 2026 outlook after strong Q3 results, backed by a record $340 billion backlog, robust aerospace demand and expanding defense production.

Advanced display technology enables controllers to manage rising traffic demands

, /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, has announced the launch of its Tower MicroELITE (TME) surveillance solution, a secure, scalable digital display system that enhances air traffic controller situational awareness. San Bernardino Airport (SBD) became the first to deploy the new solution, providing the integrated surveillance data tracking needed to accommodate a rapid increase in airspace operations.

As a federal contract tower, SBD represents a growing segment of private and contract airports that continue to see rising traffic levels without the benefit of certified radar displays, underscoring the need for modern, reliable surveillance solutions.

"As air traffic continues to grow, airports need solutions that give controllers a clear and reliable view of what's happening in their airspace," said Nicole White, vice president and general manager of Connected Aviation at Collins Aerospace. "Tower MicroELITE delivers that clarity with an FAA-approved solution that's easy to integrate and scalable so operators can manage traffic demands with confidence."

The TME solution is architected from Collins' FAA-certified Standard Terminal Automation Replacement System (STARS), providing controllers a familiar, industry-standard interface to monitor and manage complex aircraft sequencing. Utilizing commercial off-the-shelf hardware, the TME system can be deployed at airports of any size – including regional and general aviation reliever airports, business aviation terminals and heliports – providing towers a compact, efficient and affordable enterprise-grade situational awareness tool.

TME has received FAA System Design Approval as an Airborne Position Reference Tool (APRT), making the system available for deployment at eligible FAA Contract Tower airports and privately operated air traffic control facilities. The solution advances Collins' broader vision for airspace modernization by connecting controllers with timely surveillance data and proven automation tools to help them manage increasingly complex operating environments.

About Collins Aerospace
Collins Aerospace, an RTX business, provides advanced aerospace and defense solutions across avionics, aircraft interiors, aerostructures and engine components, mission systems, and power and control systems. Our global employees are dedicated to delivering innovative technologies to enhance aircraft performance, passenger comfort, operational safety and reliability.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.    

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

Adjusted Sales: $25 billion, up 11% year over year (12% organic); commercial OE +10%, commercial aftermarket +16%, defense +10%.Adjusted EPS: $2.26, up 33% year

RTX Locks In a Decade of Defense DominanceRTX NYSE: RTX reported third-quarter 2026 adjusted sales of $25 billion, up 11% from a year earlier on an adjusted basis and 12% organically, as commercial original equipment, commercial aftermarket and defense businesses all posted growth.

Adjusted earnings per share rose 33% year over year to $2.26, while free cash flow totaled $2.1 billion. The company said earnings included $0.25 per share of recovery related to IEEPA costs. RTX ended the quarter with a record backlog of $340 billion, up 36% year over year and 18% sequentially.

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This Space ETF Offers SpaceX Exposure—But Investors Are Paying for the Volatility“Our continued execution and operational focus enabled us to deliver another very strong quarter of results across RTX,” Chairman and Chief Executive Officer Chris Calio said on the company’s earnings call.

Defense awards drive backlog growth Defense bookings were a major contributor to the quarter’s backlog increase. RTX booked nearly $59 billion of defense awards and reported a defense book-to-bill ratio of 4.57. The company cited roughly $23 billion in Tomahawk awards and more than $14 billion for AMRAAM after converting framework agreements into multiyear production contracts at Raytheon.

5 Oversold Corners of the Market That Could Bounce If Breadth Finally ImprovesCalio also said RTX had signed multiyear contracts for SM-6 and SM-3 IB earlier in October. He described the contracts as significant revenue drivers for Raytheon over the coming decade, while noting the company is now focused on expanding capacity, securing supply and removing production bottlenecks.

Raytheon posted quarterly sales of $8 billion, up 14% year over year, supported by naval programs and land and air defense systems including Patriot, Standard Missile and Tomahawk. Adjusted operating profit rose $275 million to $1.1 billion, aided by improved productivity, higher volume and favorable program mix.

Raytheon recorded $52.3 billion in quarterly bookings, resulting in a 6.54 book-to-bill ratio and a $130 billion backlog. In addition to missile-related awards, the business cited a $3.1 billion British Army training systems award, $3 billion of classified awards and $1.8 billion for SPY-6 production.

Chief Financial Officer Neil Mitchill said the new munitions contracts will require capital expenditures and other investments over the next two to three years, but their funding structure is intended to preserve upfront free cash flow. Revenue will be recognized as costs are charged to the programs, with sales and profit contributions expected to build as production rates increase.

Calio said the contracts provide nearly a decade of demand visibility and could require production rates to rise by two to four times current levels. He said RTX added 150 new Raytheon suppliers during 2026 and is working with the Department of Defense on supply-chain capacity, test requirements, producibility and new supplier qualification.

Commercial aerospace growth continues Commercial orders exceeded $22 billion during the quarter, rising more than 60% from a year earlier across original equipment and aftermarket channels. Pratt & Whitney announced GTF engine orders and commitments, including British Airways’ selection of GTF engines for up to 63 aircraft. RTX said it has received more than 800 GTF orders and commitments year to date and has a GTF backlog exceeding 8,000 engines.

Commercial aftermarket sales rose 16% organically in the quarter despite a slight year-over-year decline in global revenue passenger kilometers, according to Calio. He said maintenance, repair and overhaul demand remained strong and engine retirements were in line with company expectations.

Pratt & Whitney sales increased 10% to $9.2 billion, driven by a 21% increase in commercial aftermarket revenue, primarily from higher GTF maintenance volume. Commercial original-equipment sales declined 5% because of large commercial engine mix. Adjusted operating profit increased $217 million to $968 million.

Pratt’s PW1100 maintenance, repair and overhaul output rose more than 35% year over year in the quarter and more than 30% year to date. Calio said aircraft-on-ground levels were relatively stable sequentially because increased maintenance output offset engine removals associated with high summer fleet utilization. RTX continues to expect aircraft-on-ground reductions in the fourth quarter.

The company also said the first GTF Advantage-powered aircraft was delivered to United Airlines and entered service during October. RTX expects production to ramp next year and plans to begin incorporating its Hot Section+ upgrade package into maintenance visits early next year, pending final certification work.

Collins margin gains and investment plans Collins Aerospace reported sales of $8.4 billion, up 10% on an adjusted basis and 12% organically. Commercial original-equipment sales, excluding divestitures, rose 23%, while commercial aftermarket sales increased 9% and defense sales rose 7%.

Adjusted operating profit at Collins increased $594 million to $1.8 billion. The business expanded margins by 560 basis points year over year, including approximately 300 basis points from IEEPA recovery. Mitchill said the quarter’s margin performance was “strong and very clean,” though fourth-quarter margins will reflect higher research and development, digital spending, increased original-equipment volume and other timing items.

RTX said Collins is pursuing structural cost actions including operational consolidation, shifting more manufacturing hours to best-cost locations and reducing overhead layers. The company said Collins has delivered double-digit organic sales growth year to date while reducing indirect labor headcount.

Across RTX, the company invested $2.8 billion in company- and customer-funded research and development and capital expenditures during the quarter. Investments included a $50 million expansion of Raytheon’s Forest, Mississippi, manufacturing facility, which will support Next Generation Jammer and other radar programs.

RTX raises 2026 outlook RTX raised its full-year adjusted sales outlook to a range of $97 billion to $97.5 billion, from a prior range of $95 billion to $96 billion. The updated outlook implies organic sales growth of 10% to 11%, compared with the company’s prior forecast of 8% to 9% growth.

Adjusted EPS: $7.65 to $7.75, up from prior guidance of $7.10 to $7.25. Free cash flow: $9 billion to $9.2 billion, up from $8.5 billion to $8.75 billion. Defense sales: Expected to grow at a low-double-digit rate, supported primarily by Raytheon. Commercial aftermarket: Expected to rise from low-double-digits to the low teens, reflecting higher GTF aftermarket volume. Mitchill said the company expects another year of sales and earnings growth, improving operating margins and strong free cash flow in 2027, though RTX plans to provide detailed 2027 guidance during its fourth-quarter call in January.

About RTX (NYSE:RTX)RTX Corporation NYSE: RTX is an aerospace and defense company that develops and manufactures products and systems for commercial aviation, business aviation, military aircraft and government customers. Its portfolio includes aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, air and missile defense systems, precision weapons, radars and advanced sensors.

The company operates through three principal businesses: Collins Aerospace, which supplies aerospace systems and components; Pratt & Whitney, which designs and produces aircraft engines and related services; and Raytheon, which provides defense and intelligence technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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RTX (RTX - Free Report) came out with quarterly earnings of $2.26 per share, beating the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.7 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +26.97%. A quarter ago, it was expected that this an aerospace and defense company would post earnings of $1.66 per share when it actually produced earnings of $1.89, delivering a surprise of +13.86%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

RTX, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $24.97 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.96%. This compares to year-ago revenues of $22.48 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

RTX shares have added about 4.8% since the beginning of the year versus the S&P 500's gain of 12.4%.

What's Next for RTX?While RTX has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for RTX was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.80 on $25.5 billion in revenues for the coming quarter and $7.23 on $96.07 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Redwire Corporation (RDW - Free Report) , is yet to report results for the quarter ended September 2026.

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +52.4%. The consensus EPS estimate for the quarter has been revised 9.8% lower over the last 30 days to the current level.

Redwire Corporation's revenues are expected to be $125.68 million, up 21.5% from the year-ago quarter.

Key Takeaways RTX's Q3 adjusted EPS surged 32.9% to $2.26, while revenues climbed 11.1% to $24.97 billion.RTX's organic sales grew 12%, backed by strong segment performance and a record $340 billion order backlog.RTX raised its 2026 adjusted EPS outlook to $7.65-$7.75 and sales guidance to $97.0-$97.5 billion. RTX Corporation’s (RTX - Free Report) third-quarter 2026 adjusted earnings per share (EPS) of $2.26 beat the Zacks Consensus Estimate of $1.78 by 27%. The bottom line improved 32.9% from the year-ago quarter’s level of $1.70.

RTX’s Total RevenuesRevenues rose 11.1% year over year to $24.97 billion and beat the consensus mark of $24.01 billion by 4%. Growth was supported by higher commercial aftermarket and defense demand.

RTX Benefits From Broad-Based Organic GrowthOrganic sales advanced 12% in the third quarter. Commercial original equipment (OE) sales at Collins Aerospace increased 23%, while commercial aftermarket revenues rose 9% and defense sales grew 7%. At Pratt & Whitney, commercial aftermarket sales increased 21%, while military revenues rose 2%. Raytheon’s sales increased 14%, driven by higher volumes across naval programs and land and air defense systems.

The company secured more than $81 billion in new commercial and defense awards during the third quarter. Its total backlog reached a record $340 billion, comprising $176 billion of commercial orders and $164 billion of defense orders, providing strong visibility into future production requirements. RTX also secured multi-year undefinitized production contracts for the Tomahawk and AMRAAM programs.

RTX’s Operational PerformanceTotal costs and expenses increased 8.8% year over year to $21.79 billion. Cost of sales rose to $19.16 billion from $17.90 billion, while selling, general and administrative expenses increased to $1.92 billion from $1.44 billion.

Adjusted segment operating profit advanced 39% to $3.89 billion, with the consolidated adjusted segment operating margin expanding 310 basis points to 15.2%. Reported operating profit rose to $3.34 billion from $2.52 billion, while the reported operating margin improved to 13.4% from 11.2%.

RTX’s Segmental PerformanceCollins Aerospace generated sales of $8.38 billion, up 10% year over year and 12% organically. Commercial OE sales increased 23%, commercial aftermarket revenues rose 9% and defense sales improved 7%. Higher volumes across narrowbody and widebody platforms supported commercial OE growth, while increased demand for modifications, upgrades, provisioning, parts and repair drove aftermarket revenues. Adjusted operating profit increased 50% to $1.79 billion.

Pratt & Whitney’s sales rose 10% to $9.23 billion. Commercial aftermarket sales increased 21%, primarily driven by higher Geared Turbofan (GTF) engine volumes, while military revenues grew 2%. Commercial OE sales declined 5% due to a large commercial engine mix. Adjusted operating profit advanced 29% to $968 million, supported by higher commercial aftermarket volumes and approximately $160 million in IEEPA cost recovery. However, reported operating profit declined 19% to $608 million, reflecting a $363 million charge related to a customer bankruptcy.

Raytheon recorded sales of $8.03 billion, up 14% year over year. Growth reflected higher volumes across naval programs and land and air defense systems, including Patriot, Standard Missile and Tomahawk programs. Adjusted operating profit increased 32% to $1.13 billion, driven by improved net productivity, higher volumes and favorable mix, including Patriot programs.

RTX’s Financial UpdateRTX had cash and cash equivalents of $9.17 billion as of Sept. 30, 2026 compared with $7.44 billion as of Dec. 31, 2025.

Long-term debt totaled $31.49 billion as of Sept. 30, 2026 compared with $34.29 billion as of Dec. 31, 2025.

Operating cash flow totaled $2.87 billion compared with $4.64 billion in the prior-year quarter. Capital expenditures were $749 million, resulting in free cash flow of $2.12 billion versus $4.03 billion a year earlier. The decline in quarterly cash flow reflected a comparison with the stronger prior-year period.

RTX Raises Its 2026 Financial OutlookRTX raised its 2026 adjusted sales guidance to $97.0-$97.5 billion from $95.0-$96.0 billion. The company now expects organic sales growth of 10-11% compared with its prior projection of 8-9%.

Adjusted earnings are projected to be between $7.65 and $7.75 per share, up from $7.10-$7.25. Free cash flow is expected to range from $9.0 billion to $9.2 billion compared with the previous forecast of $8.50-$8.75 billion.

RTX’s Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Defense ReleasesThe Boeing Company (BA - Free Report) is set to report third-quarter 2026 earnings on Oct. 27, 2026, before the market opens.

The Zacks Consensus Estimate for BA’s loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%.

Lockheed Martin (LMT - Free Report) is set to report third-quarter 2026 earnings on Oct. 22, 2026, before market open.

The consensus estimate for LMT’s earnings is pegged at $7.49 per share. The consensus estimate for its sales is pegged at $20.43 billion, indicating year-over-year growth of 9.8%.

General Dynamics Corporation (GD - Free Report) is set to report third-quarter 2026 results on Oct. 30, 2026, before the market opens.

The Zacks Consensus Estimate for GD’s earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%.

RTX (RTX - Free Report) reported $24.97 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 11.1%. EPS of $2.26 for the same period compares to $1.70 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $24.01 billion, representing a surprise of +3.96%. The company delivered an EPS surprise of +26.97%, with the consensus EPS estimate being $1.78.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how RTX performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Adjusted Net Sales- Collins Aerospace: $8.38 billion compared to the $8.06 billion average estimate based on two analysts. The reported number represents a change of +10% year over year.Net Sales- Raytheon: $8.03 billion compared to the $7.67 billion average estimate based on two analysts. The reported number represents a change of +14% year over year.Adjusted Net Sales- Pratt & Whitney: $9.23 billion compared to the $8.96 billion average estimate based on two analysts. The reported number represents a change of +9.6% year over year.Adjusted Net Sales- Eliminations & Other: $-679 million versus the two-analyst average estimate of $-695.85 million. The reported number represents a year-over-year change of +11.1%.Net Sales- Eliminations and other: $-679 million compared to the $-695.85 million average estimate based on two analysts. The reported number represents a change of +11.1% year over year.Operating Profit- Collins Aerospace- Adjusted: $1.79 billion versus $1.37 billion estimated by two analysts on average.Operating Profit- Raytheon- Adjusted: $1.13 billion versus the two-analyst average estimate of $950.81 million.Operating Profit- Pratt & Whitney- Adjusted: $968 million versus $760.55 million estimated by two analysts on average.Operating Profit- Corporate expenses and other unallocated items- Adjusted: $-25 million versus the two-analyst average estimate of $-73.13 million.Operating Profit- Eliminations and Other- Adjusted: $-49 million compared to the $-19 million average estimate based on two analysts.View all Key Company Metrics for RTX here>>>

Shares of RTX have returned -1.2% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways RTX's $729M LIDS contracts mark the first international sales of Raytheon's KuRFS and Coyote systems.LIDS offers fixed-site and mobile configurations to protect military installations and deployed forces.RTX's Coyote interceptors have proven effective in hundreds of successful combat interceptions. RTX Corporation (RTX - Free Report) , through its Raytheon business, recently secured contracts worth $729 million to deliver key components of the Low, slow, small, unmanned aircraft Integrated Defeat System (“LIDS”) to the U.S. Army, Qatar and Jordan. The contracts mark the first international sales of Raytheon's Ku-band Radio Frequency Sensor (KuRFS) and Coyote interceptor systems.

LIDS combines advanced radar detection with kinetic and non-kinetic interception capabilities to counter increasingly sophisticated drone threats. The system integrates KuRFS, which provides 360-degree threat detection, with Coyote interceptors capable of defeating individual drones and coordinated swarms. This combination enables LIDS to detect, track and neutralize aerial threats effectively.

The contracts include fixed-site and mobile LIDS configurations, providing flexible protection for military installations and deployed forces. Raytheon's Coyote interceptors have demonstrated their effectiveness through hundreds of successful combat interceptions, highlighting the system's capabilities against evolving aerial threats.

RTX's Counter-Drone ExpertiseRTX's Raytheon business offers advanced counter-unmanned aircraft systems (C-UAS) that combine detection, tracking and interception technologies to protect against hostile drones. Its integrated solutions are designed to counter threats ranging from individual unmanned aircraft to sophisticated drone swarms.

The company's counter-drone portfolio includes KuRFS, Coyote interceptors and the High-Energy Laser Weapon System (“HELWS”). Its Coyote family includes kinetic and non-kinetic variants designed to counter different drone threats. Meanwhile, HELWS uses high-energy photons to detect, track and neutralize aerial threats. These diverse capabilities strengthen RTX's position in the growing global counter-drone defense market.

Growth Potential for RTXRising geopolitical tensions and the increasing deployment of unmanned aerial systems are encouraging nations worldwide to strengthen their counter-drone defense capabilities. The growing use of inexpensive drones and coordinated swarms in modern warfare is accelerating demand for advanced detection, tracking and interception technologies.

The Mordor Intelligence firm predicts that the anti-drone market will witness a CAGR of 27.83% between 2026 and 2031. This outlook bodes well for RTX, which boasts a diversified portfolio of counter-drone technologies.

Opportunities for Other Defense CompaniesOther defense contractors poised to benefit from the growth opportunities in the counter-drone defense market include the following:

Lockheed Martin Corporation (LMT - Free Report) : The company develops advanced counter-unmanned aircraft systems, including Sanctum, MORFIUS and GRIZZLY. Its portfolio integrates artificial intelligence, advanced sensors, electronic warfare technologies and precision interceptors to detect, track and defeat individual drones and coordinated swarms.

LMT's Sanctum system uses AI-enabled detection, tracking and command-and-control technologies to counter evolving drone threats. Its modular architecture supports integration with existing defense systems and various interceptors.

L3Harris Technologies, Inc. (LHX - Free Report) : The company provides advanced counter-unmanned systems, including VAMPIRE, Drone Guardian, CORVUS-RAVEN and WESCAM MX-Series sensors. Its portfolio combines surveillance, target identification, electronic warfare and precision-strike capabilities to counter drone threats across land, air and maritime environments.

LHX's VAMPIRE system is a portable, vehicle-mounted counter-drone solution designed to detect and neutralize hostile unmanned aircraft. It integrates WESCAM electro-optical/infrared sensors with laser-guided munitions for precise engagements. The system can be installed on standard pickup trucks in approximately two hours, offering flexible protection against emerging drone threats.

Northrop Grumman Corporation (NOC - Free Report) : The company offers integrated counter-drone solutions, including Forward Area Air Defense (“FAAD”), AiON, Mobile Acquisition, Cueing and Effector and advanced radar systems. Its portfolio combines sensors, command-and-control technologies and kinetic and non-kinetic effectors to counter unmanned aerial threats.

NOC's FAAD system integrates short-range air defense, counter-rocket, artillery, mortar and counter-drone capabilities into a unified command-and-control platform. It provides real-time threat tracking and engagement support, enabling rapid responses to aerial threats.

Strong operational performance drives double-digit sales and earnings growth in Q3;
Raises 2026 outlook for adjusted sales,* adjusted EPS,* and free cash flow*

, /PRNewswire/ -- RTX (NYSE: RTX) reports third quarter 2026 results.

Third quarter 2026

Sales of $25.0 billion, up 11 percent versus prior year, and up 12 percent organically* GAAP EPS of $1.89, including $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items Adjusted EPS* of $2.26, up $0.56, or 33 percent, versus prior year, including $0.25 from IEEPA cost recovery Operating cash flow of $2.9 billion, including approximately $0.3 billion from IEEPA recovery; free cash flow* of $2.1 billion Company backlog of $340 billion, including $176 billion of commercial and $164 billion of defense Awarded Tomahawk and AMRAAM multi-year undefinitized production contracts in the third quarter Updates outlook for full year 2026

Adjusted sales* of $97.0 - $97.5 billion, up from $95.0 - $96.0 billion Organic sales growth* of 10 to 11 percent, up from 8 to 9 percent Adjusted EPS* of $7.65 - $7.75, up from $7.10 - $7.25 Free cash flow* of $9.0 - $9.2 billion, up from $8.50 - $8.75 billion "Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth* across commercial aerospace and defense. Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," said RTX Chairman and CEO Chris Calio.

"Given our performance year to date, we are again raising our full year outlook for adjusted sales,* adjusted EPS,* and free cash flow.* We remain focused on increasing output, optimizing our cost structure, and investing in new technologies to support our customers and drive continued growth."

Third quarter 2026
RTX third quarter reported and adjusted sales* were $25.0 billion, up 11 percent versus the prior year and 12 percent organically.* GAAP EPS of $1.89 included $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other net significant and/or non-recurring items. Adjusted EPS* of $2.26 was up 33 percent versus the prior year, including $0.25 of IEEPA recovery.

The company reported net income attributable to common shareowners in the third quarter of $2.6 billion, which included $0.3 billion of acquisition accounting adjustments and $0.2 billion of restructuring and other net significant and/or non-recurring items. Adjusted net income* of $3.1 billion was up 34 percent versus the prior year driven by $1.1 billion of adjusted segment operating profit growth* across all three segments, including $0.4 billion of IEEPA recovery. This growth was partially offset by higher taxes and lower pension income. Operating cash flow in the third quarter was $2.9 billion, including $0.3 billion of IEEPA recovery. Capital expenditures were $0.7 billion, resulting in free cash flow* of $2.1 billion.

Summary Financial Results

3rd Quarter

($ in millions, except EPS)

2026

2025

% Change

Reported

Sales

$   24,965

$   22,478

11 %

Net Income

$     2,583

$     1,918

35 %

EPS

$       1.89

$       1.41

34 %

Adjusted*

Sales

$   24,965

$   22,478

11 %

Net Income

$     3,091

$     2,311

34 %

EPS

$       2.26

$       1.70

33 %

Operating Cash Flow

$     2,868

$     4,639

(38) %

Free Cash Flow*

$     2,119

$     4,025

(47) %

Segment Results 

Collins Aerospace

3rd Quarter

($ in millions)

2026

2025

% Change

Reported

Sales

$  8,382

$  7,621

10 %

Operating Profit

$  1,789

$  1,260

42 %

ROS

21.3 %

16.5 %

480

bps

Adjusted*

Sales

$  8,382

$  7,621

10 %

Operating Profit

$  1,788

$  1,194

50 %

ROS

21.3 %

15.7 %

560

bps

Collins Aerospace third quarter 2026 reported and adjusted sales* of $8,382 million were up 10 percent versus the prior year. Excluding the impact of divestitures, sales increased 12 percent organically* driven by a 23 percent increase in commercial OE, a 9 percent increase in commercial aftermarket, and a 7 percent increase in defense. The increase in commercial OE sales was driven by higher volume on narrowbody and widebody platforms, while the increase in commercial aftermarket sales was driven by growth in modifications and upgrades, provisioning, and parts and repair. The increase in defense sales was driven by higher volume across multiple programs.

Collins Aerospace reported operating profit of $1,789 million was up 42 percent versus the prior year. Reported operating profit in Q3 2025 included a gain on the sale of the actuation and flight control business. Adjusted operating profit* of $1,788 million was up 50 percent versus the prior year. The increase was driven by drop through on higher commercial volume, commercial mix, and approximately $250 million of IEEPA recovery.

Pratt & Whitney

3rd Quarter

($ in millions)

2026

2025

% Change

Reported

Sales

$  9,231

$  8,423

10 %

Operating Profit

$     608

$     751

(19) %

ROS

6.6 %

8.9 %

(230)

bps

Adjusted*

Sales

$  9,231

$  8,423

10 %

Operating Profit

$     968

$     751

29 %

ROS

10.5 %

8.9 %

160

bps

Pratt & Whitney third quarter reported and adjusted sales* of $9,231 million were up 10 percent versus the prior year. The sales growth was driven by a 21 percent increase in commercial aftermarket and a 2 percent increase in military, partially offset by a 5 percent decrease in commercial OE. The increase in commercial aftermarket was driven by higher volume, primarily GTF, while the decrease in commercial OE was driven by large commercial engine mix. The increase in military was driven by higher volume across multiple programs, partially offset by the prior year benefit from contract award timing.

Pratt & Whitney reported operating profit of $608 million was down 19 percent versus the prior year. Reported operating profit included a charge of $363 million related to a customer bankruptcy. Adjusted operating profit* of $968 million was up 29 percent versus the prior year. The increase was driven by drop through on higher commercial aftermarket volume and approximately $160 million of IEEPA recovery. This growth was partially offset by large commercial OE mix, commercial aftermarket mix, and higher SG&A expense.

Raytheon

3rd Quarter

($ in millions)

2026

2025

% Change

Reported

Sales

$  8,031

$  7,045

14 %

Operating Profit

$  1,133

$     859

32 %

ROS

14.1 %

12.2 %

190

bps

Adjusted*

Sales

$  8,031

$  7,045

14 %

Operating Profit

$  1,134

$     859

32 %

ROS

14.1 %

12.2 %

190

bps

Raytheon third quarter reported and adjusted sales* of $8,031 million were up 14 percent versus the prior year. This increase was driven by higher volume on naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk. 

Raytheon reported operating profit of $1,133 million was up 32 percent versus the prior year. Adjusted operating profit* of $1,134 million was up 32 percent versus the prior year. The increase was driven by improved net productivity, higher volume, and favorable mix, including Patriot programs. Productivity in the quarter included approximately $85 million of benefits associated with an international contract modification and a favorable adjustment related to an offset obligation.

*Adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), segment operating profit (loss) and margin percentage (ROS), adjusted segment sales, adjusted segment operating profit (loss) and margin percentage (ROS), adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate, and free cash flow are non-GAAP financial measures. When we provide our expectation for adjusted net sales (also referred to as adjusted sales), adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures (expected diluted EPS and expected cash flow from operations) is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.

IEEPA = International Emergency Economic Powers Act.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

Conference Call on the Third Quarter 2026 Financial Results
RTX's financial results conference call will be held on Tuesday, October 20, 2026 at 8:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.

Use and Definitions of Non-GAAP Financial Measures
RTX Corporation ("RTX" or "the Company") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:

Non-GAAP measure

Definition

Adjusted net sales / Adjusted sales

Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as "net significant and/or non-recurring items").

Organic sales

Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items.

Adjusted operating profit (loss) and margin percentage (ROS)

Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items. Adjusted operating profit margin percentage represents adjusted operating profit (loss) as a percentage of adjusted net sales.

Segment operating profit (loss) and margin percentage (ROS)

Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding acquisition accounting adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin percentage represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other).

Adjusted segment sales

Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items.

Adjusted segment operating profit (loss) and margin percentage (ROS)

Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin percentage represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other).

Adjusted net income

Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.

Adjusted earnings per share (EPS)

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.

Adjusted effective tax rate

Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments2, and net significant and/or non-recurring items.

Free cash flow

Free cash flow represents cash flow from operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTX's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX's common stock, and distribution of earnings to shareowners.

1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.

2 Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.

3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.

When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin percentage (ROS), adjusted segment operating profit (loss) and margin percentage (ROS), adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Cautionary Statement Regarding Forward-Looking Statements This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide RTX Corporation ("RTX") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid, and are not statements of historical fact. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "goals," "objectives," "confident," "on track," "designed to," "commit," "commitment" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, targets and commitments (including for share repurchases or otherwise), and other statements which are not solely historical facts. All forward-looking statements involve risks, uncertainties, changes in circumstances and other factors that are hard to predict and each of which may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, as amended. Such risks, uncertainties and other factors include, without limitation: (1) changes in economic, capital market, and political conditions in the U.S. and globally; (2) changes in U.S. or foreign government defense spending, national priorities, and policy positions; (3) our performance on our contracts and programs, including our ability to control costs, and our dependence on U.S. government approvals for certain international contracts; (4) challenges in the development, certification, production, delivery, support, and performance of RTX's advanced technologies and new products and services and the realization of the anticipated benefits; (5) the challenges of operating in RTX's highly-competitive industries both domestically and abroad; (6) our reliance on U.S. and non-U.S. suppliers and commodity markets, including cost increases and disruptions in the delivery of materials and services to RTX or our suppliers; (7) changes in trade policies, implementation of sanctions, imposition of tariffs (and counter-tariffs) and other trade measures and restrictions, foreign currency fluctuations, and sales methods; (8) the economic condition of the aerospace industry; (9) the ability of RTX to attract, train, qualify, and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world; (10) the scope, nature, timing, and challenges of managing and completing acquisitions, investments, divestitures, and other transactions; (11) compliance with legal, environmental, regulatory, and other requirements in the U.S. and other countries in which RTX and its businesses operate; (12) pending, threatened, and future legal proceedings, investigations, audits and other contingencies; (13) the previously-disclosed deferred prosecution agreements entered into between RTX and the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) administrative order imposed on RTX, and the related investigations by the SEC and DOJ, the consent agreement between RTX and the Department of State, and the administrative agreement between RTX and the Department of the Navy; (14) RTX's ability to engage in desirable capital-raising or strategic transactions; (15) repurchases by RTX of its common stock, or declarations of cash dividends, which may be discontinued, accelerated, suspended, or delayed at any time due to various factors; (16) realizing expected benefits from, incurring costs for, and successfully managing strategic initiatives such as cost reduction, restructuring, digital transformation, and other operational initiatives; (17) additional tax exposures due to new tax legislation or other developments in the U.S. and other countries in which RTX and its businesses operate; (18) the identified rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet; (19) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services; (20) an RTX product safety failure, quality issue, or other failure affecting RTX's or its customers' or suppliers' products or systems; (21) cybersecurity, including cyber-attacks on RTX's information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (22) insufficient indemnity or insurance coverage; (23) our intellectual property and certain third-party intellectual property; (24) threats to RTX facilities and personnel, or those of its suppliers or customers, as well as public health crises, damaging weather, acts of nature, or other similar events outside of RTX's control that may affect RTX or its suppliers or customers; (25) changes in accounting estimates for our programs on our financial results; (26) changes in pension and other postretirement plan estimates and assumptions and contributions; (27) an impairment of goodwill and other intangible assets; and (28) climate change and climate-related regulations, and related customer and market demands, products and technologies. For additional information on identifying factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, see the reports of RTX filed with or furnished to the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and RTX assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

RTX Corporation

Condensed Consolidated Statement of Operations

Quarter Ended
September 30,

Nine Months Ended
September 30,

(Unaudited)

(Unaudited)

(dollars in millions, except per share amounts; shares in millions)

2026

2025

2026

2025

Net Sales

$   24,965

$   22,478

$   71,749

$   64,365

Costs and expenses:

Cost of sales

19,160

17,898

56,217

51,293

Research and development

711

684

2,064

2,018

Selling, general, and administrative

1,918

1,436

5,052

4,457

Total costs and expenses

21,789

20,018

63,333

57,768

Other income, net

161

63

287

107

Operating profit

3,337

2,523

8,703

6,704

Non-service pension income

(345)

(364)

(1,048)

(1,081)

Interest expense, net

381

449

1,188

1,349

Income before income taxes

3,301

2,438

8,563

6,436

Income tax expense

593

432

1,449

1,080

Net income

2,708

2,006

7,114

5,356

Less: Noncontrolling interest in subsidiaries' earnings

125

88

333

246

Net income attributable to common shareowners

$     2,583

$     1,918

$     6,781

$     5,110

Earnings Per Share attributable to common shareowners:

Basic

$      1.91

$      1.43

$      5.02

$      3.81

Diluted

$      1.89

$      1.41

$      4.96

$      3.77

Weighted Average Shares Outstanding:

Basic shares

1,352.2

1,343.1

1,350.2

1,340.2

Diluted shares

1,368.1

1,358.4

1,365.8

1,354.7

RTX Corporation

Segment Net Sales and Operating Profit (Loss)

Quarter Ended

Nine Months Ended

(Unaudited)

(Unaudited)

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

(dollars in millions)

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Net Sales

Collins Aerospace

$ 8,382

$ 8,382

$ 7,621

$ 7,621

$24,194

$24,194

$22,460

$22,460

Pratt & Whitney

9,231

9,231

8,423

8,423

26,293

26,293

23,420

23,420

Raytheon

8,031

8,031

7,045

7,045

23,245

23,245

20,386

20,386

Total segments

25,644

25,644

23,089

23,089

73,732

73,732

66,266

66,266

Eliminations and other

(679)

(679)

(611)

(611)

(1,983)

(1,983)

(1,901)

(1,901)

Consolidated

$24,965

$24,965

$22,478

$22,478

$71,749

$71,749

$64,365

$64,365

Operating Profit (Loss)

Collins Aerospace

$ 1,789

$ 1,788

$ 1,260

$ 1,194

$ 4,402

$ 4,456

$ 3,521

$ 3,670

Pratt & Whitney

608

968

751

751

2,056

2,419

1,823

1,949

Raytheon

1,133

1,134

859

859

3,016

3,022

2,342

2,346

Total segments

3,530

3,890

2,870

2,804

9,474

9,897

7,686

7,965

Eliminations and other

110

(49)

(14)

(14)

246

17

22

(19)

Corporate expenses and other unallocated items

(26)

(25)

(25)

(23)

(138)

(59)

(110)

(94)

FAS/CAS operating adjustment

171

171

199

199

514

514

570

570

Acquisition accounting adjustments

(448)

—

(507)

—

(1,393)

—

(1,464)

—

Consolidated

$ 3,337

$ 3,987

$ 2,523

$ 2,966

$ 8,703

$          10,369

$ 6,704

$ 8,422

Segment Operating Profit Margin

Collins Aerospace

21.3 %

21.3 %

16.5 %

15.7 %

18.2 %

18.4 %

15.7 %

16.3 %

Pratt & Whitney

6.6 %

10.5 %

8.9 %

8.9 %

7.8 %

9.2 %

7.8 %

8.3 %

Raytheon

14.1 %

14.1 %

12.2 %

12.2 %

13.0 %

13.0 %

11.5 %

11.5 %

Total segment

13.8 %

15.2 %

12.4 %

12.1 %

12.8 %

13.4 %

11.6 %

12.0 %

RTX Corporation

Condensed Consolidated Balance Sheet

September 30, 2026

December 31, 2025

(dollars in millions)

(Unaudited)

(Unaudited)

Assets

Cash and cash equivalents

$           9,173

$           7,435

Accounts receivable, net

14,681

14,701

Contract assets, net

18,701

17,092

Inventory, net

14,953

13,364

Other assets, current

8,561

7,740

Total current assets

66,069

60,332

Customer financing assets

1,880

2,132

Fixed assets, net

17,235

16,868

Operating lease right-of-use assets

1,770

1,887

Goodwill

52,969

53,343

Intangible assets, net

30,652

31,845

Other assets

6,021

4,672

Total assets

$        176,596

$        171,079

Liabilities, Redeemable Noncontrolling Interest, and Equity

Short-term borrowings

$               210

$               204

Accounts payable

17,803

15,895

Accrued employee compensation

3,155

3,308

Other accrued liabilities

14,801

14,350

Contract liabilities

21,550

21,615

Long-term debt currently due

5,679

3,412

Total current liabilities

63,198

58,784

Long-term debt

31,490

34,288

Operating lease liabilities, non-current

1,495

1,602

Future pension and postretirement benefit obligations

1,913

2,067

Other long-term liabilities

7,508

7,200

Total liabilities

105,604

103,941

Redeemable noncontrolling interest

28

36

Shareowners' Equity:

Common stock

38,673

38,126

Treasury stock

(26,712)

(26,881)

Retained earnings

60,597

56,718

Accumulated other comprehensive loss

(3,308)

(2,718)

Total shareowners' equity

69,250

65,245

Noncontrolling interest

1,714

1,857

Total equity

70,964

67,102

Total liabilities, redeemable noncontrolling interest, and equity

$        176,596

$        171,079

RTX Corporation

Condensed Consolidated Statement of Cash Flows

Quarter Ended
September 30,

Nine Months Ended
September 30,

(Unaudited)

(Unaudited)

(dollars in millions)

2026

2025

2026

2025

Operating Activities:

Net income

$     2,708

$     2,006

$     7,114

$     5,356

Adjustments to reconcile net income to net cash flows provided by operating activities from:

Depreciation and amortization

1,068

1,091

3,218

3,219

Deferred income tax provision

90

477

60

598

Stock compensation cost

159

113

455

337

Net periodic pension and other postretirement income

(304)

(320)

(920)

(956)

Share-based 401(k) matching contributions

135

128

474

435

Change in:

Accounts receivable

(717)

(351)

377

(1,488)

Contract assets

(242)

(934)

(2,184)

(2,124)

Inventory

(543)

182

(1,686)

(1,015)

Other current assets

(552)

(879)

(974)

(979)

Accounts payable and accrued liabilities

1,806

2,237

2,753

2,096

Contract liabilities

(980)

986

(688)

1,329

Other operating activities, net

240

(97)

271

(406)

Net cash flows provided by operating activities

2,868

4,639

8,270

6,402

Investing Activities:

Capital expenditures

(749)

(614)

(1,964)

(1,657)

Dispositions of businesses, net of cash transferred

—

1,188

—

1,188

Increase in other intangible assets

(73)

(121)

(229)

(347)

Receipts from settlements of derivative contracts, net

7

42

8

187

Other investing activities, net

(42)

(24)

(224)

(87)

Net cash flows (used in) provided by investing activities

(857)

471

(2,409)

(716)

Financing Activities:

Repayment of long-term debt

(2)

(1,500)

(526)

(2,289)

Change in commercial paper, net

—

(1,432)

—

—

Dividends paid

(984)

(910)

(2,882)

(2,660)

Repurchase of common stock

—

—

—

(50)

Other financing activities, net

(190)

(81)

(677)

(333)

Net cash flows used in financing activities

(1,176)

(3,923)

(4,085)

(5,332)

Effect of foreign exchange rate changes on cash and cash equivalents

3

(10)

(16)

44

Net increase in cash, cash equivalents, and restricted cash

838

1,177

1,760

398

Cash, cash equivalents and restricted cash, beginning of period

8,392

4,827

7,470

5,606

Cash, cash equivalents and restricted cash, end of period

9,230

6,004

9,230

6,004

Less: Restricted cash, included in Other assets, current and Other assets

57

38

57

38

Cash and cash equivalents, end of period

$     9,173

$     5,966

$     9,173

$     5,966

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Sales, Adjusted Operating Profit (Loss) & Operating Profit (Loss) Margin

Quarter Ended
September 30,

Nine Months Ended
September 30,

(Unaudited)

(Unaudited)

(dollars in millions - Income (Expense))

2026

2025

2026

2025

Collins Aerospace

Net sales

$    8,382

$     7,621

$    24,194

$   22,460

Operating profit

$    1,789

$     1,260

$      4,402

$     3,521

Restructuring

6

(17)

(49)

(169)

Gain on sale of businesses, net of transaction and other related costs (1)

—

95

—

95

Portfolio transformation and divestiture costs (1)

(5)

(12)

(5)

(75)

Adjusted operating profit

$    1,788

$     1,194

$      4,456

$     3,670

Adjusted operating profit margin

21.3 %

15.7 %

18.4 %

16.3 %

Pratt & Whitney

Net sales

$    9,231

$     8,423

$    26,293

$   23,420

Operating profit

$       608

$        751

$      2,056

$     1,823

Restructuring

3

—

—

(18)

Customer bankruptcy (1)

(363)

—

(363)

(108)

Adjusted operating profit

$       968

$        751

$      2,419

$     1,949

Adjusted operating profit margin

10.5 %

8.9 %

9.2 %

8.3 %

Raytheon

Net sales

$    8,031

$     7,045

$    23,245

$   20,386

Operating profit

$    1,133

$        859

$      3,016

$     2,342

Restructuring

(1)

—

(6)

(4)

Adjusted operating profit

$    1,134

$        859

$      3,022

$     2,346

Adjusted operating profit margin

14.1 %

12.2 %

13.0 %

11.5 %

Eliminations and Other

Net sales

$      (679)

$       (611)

$    (1,983)

$    (1,901)

Operating profit

$       110

$         (14)

$        246

$          22

Gains on investments (1)

159

—

229

41

Adjusted operating profit (loss)

$       (49)

$         (14)

$          17

$         (19)

Corporate expenses and other unallocated items

Operating loss

$       (26)

$         (25)

$       (138)

$       (110)

Restructuring

(1)

(2)

(10)

(11)

Tax audit settlements and closures (1)

—

—

—

(5)

Litigation matter (1)

—

—

(69)

—

Adjusted operating profit (loss)

$       (25)

$         (23)

$         (59)

$         (94)

FAS/CAS Operating Adjustment

Operating profit

$      171

$        199

$        514

$        570

Acquisition Accounting Adjustments

Operating loss

$     (448)

$       (507)

$    (1,393)

$    (1,464)

Acquisition accounting adjustments

(448)

(507)

(1,393)

(1,464)

Adjusted operating loss

$         —

$          —

$          —

$          —

RTX Consolidated

Net sales

$  24,965

$  22,478

$  71,749

$  64,365

Operating profit

$    3,337

$    2,523

$    8,703

$    6,704

Restructuring

7

(19)

(65)

(202)

Acquisition accounting adjustments

(448)

(507)

(1,393)

(1,464)

Total net significant and/or non-recurring items included in Operating profit above (1)

(209)

83

(208)

(52)

Adjusted operating profit

$    3,987

$    2,966

$  10,369

$    8,422

(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Income, Earnings Per Share, and Effective Tax Rate

Quarter Ended
September 30,

Nine Months Ended
September 30,

(Unaudited)

(Unaudited)

(dollars in millions - Income (Expense))

2026

2025

2026

2025

Net income attributable to common shareowners

$  2,583

$  1,918

$  6,781

$  5,110

Total Restructuring

7

(19)

(65)

(202)

Total Acquisition accounting adjustments

(448)

(507)

(1,393)

(1,464)

Total net significant and/or non-recurring items included in Operating profit (1)

(209)

83

(208)

(52)

Significant and/or non-recurring items included in Non-service Pension Income

Non-service pension restructuring

(3)

—

(7)

—

Significant non-recurring and non-operational items included in Interest Expense, Net

Tax audit settlements and closures (1)

—

—

—

54

International tax matter (1)

—

—

—

(35)

Tax effect of restructuring and net significant and/or non-recurring items above

145

50

359

330

Significant and/or non-recurring items included in Income Tax Expense

Tax audit settlements and closures (1)

—

—

—

59

Less: Impact on net income attributable to common shareowners

(508)

(393)

(1,314)

(1,310)

Adjusted net income attributable to common shareowners

$  3,091

$  2,311

$  8,095

$  6,420

Diluted Earnings Per Share

$    1.89

$    1.41

$    4.96

$   3.77

Impact on Diluted Earnings Per Share

(0.37)

(0.29)

(0.97)

(0.97)

Adjusted Diluted Earnings Per Share

$    2.26

$    1.70

$    5.93

$     4.74

Effective Tax Rate

18.0 %

17.7 %

16.9 %

16.8 %

Impact on Effective Tax Rate

(0.7) %

1.0 %

(0.8) %

(1.3) %

Adjusted Effective Tax Rate

18.7 %

16.7 %

17.7 %

18.1 %

(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin

Quarter Ended
September 30,

Nine Months Ended
September 30,

(Unaudited)

(Unaudited)

(dollars in millions)

2026

2025

2026

2025

Net Sales

$  24,965

$  22,478

$  71,749

$  64,365

Reconciliation to segment net sales:

Eliminations and other

679

611

1,983

1,901

Segment Net Sales

$  25,644

$  23,089

$  73,732

$  66,266

Operating Profit

$    3,337

$    2,523

$    8,703

$    6,704

Operating Profit Margin

13.4 %

11.2 %

12.1 %

10.4 %

Reconciliation to segment operating profit:

Eliminations and other

(110)

14

(246)

(22)

Corporate expenses and other unallocated items

26

25

138

110

FAS/CAS operating adjustment

(171)

(199)

(514)

(570)

Acquisition accounting adjustments

448

507

1,393

1,464

Segment Operating Profit

$    3,530

$    2,870

$    9,474

$    7,686

Segment Operating Profit Margin

13.8 %

12.4 %

12.8 %

11.6 %

Reconciliation to adjusted segment operating profit:

Restructuring

8

(17)

(55)

(191)

Net significant and/or non-recurring items (1)

(368)

83

(368)

(88)

Adjusted Segment Operating Profit

$    3,890

$    2,804

$    9,897

$    7,965

Adjusted Segment Operating Profit Margin

15.2 %

12.1 %

13.4 %

12.0 %

(1)  Refer to "Non-GAAP Financial Adjustments" below for a description of these adjustments.

RTX Corporation

Free Cash Flow Reconciliation

Quarter Ended September 30,

(Unaudited)

(dollars in millions)

2026

2025

Net cash flows provided by operating activities

$         2,868

$         4,639

Capital expenditures

(749)

(614)

Free cash flow

$         2,119

$         4,025

Nine Months Ended September 30,

(Unaudited)

(dollars in millions)

2026

2025

Net cash flows provided by operating activities

$         8,270

$         6,402

Capital expenditures

(1,964)

(1,657)

Free cash flow

$         6,306

$         4,745

RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Organic Sales Reconciliation

Quarter ended September 30, 2026 compared to the Quarter Ended September 30, 2025

(Unaudited)

(dollars in millions)

Total Reported
Change

Acquisitions &
Divestitures
Change

FX / Other
Change (2)

Organic Change

Prior Year
Adjusted Sales (1)

Organic Change
as a % of
Adjusted Sales

Collins Aerospace

$           761

$          (138)

$            (8)

$           907

$         7,621

12 %

Pratt & Whitney

808

—

(8)

816

8,423

10 %

Raytheon

986

—

6

980

7,045

14 %

Eliminations and Other (3)

(68)

14

10

(92)

(611)

15 %

Consolidated

$         2,487

$          (124)

$            —

$         2,611

$       22,478

12 %

(1)

For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."

(2)

Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.

(3)

FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

Nine Months Ended September 30, 2026 compared to the Nine Months Ended September 30, 2025

(Unaudited)

(dollars in millions)

Total Reported
Change

Acquisitions &
Divestitures
Change

FX / Other
Change (2)

Organic Change

Prior Year
Adjusted Sales (1)

Organic Change
as a % of
Adjusted Sales

Collins Aerospace

$         1,734

$          (925)

$            43

$         2,616

$       22,460

12 %

Pratt & Whitney

2,873

—

13

2,860

23,420

12 %

Raytheon

2,859

—

35

2,824

20,386

14 %

Eliminations and Other (3)

(82)

40

(21)

(101)

(1,901)

5 %

Consolidated

$         7,384

$          (885)

$            70

$         8,199

$       64,365

13 %

(1)

For the full Non-GAAP reconciliation of adjusted sales refer to "Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin."

(2)

Includes other significant non-operational items and/or significant operational items that may occur at irregular intervals.

(3)

FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney's FX/Other Change, but excluded for Consolidated RTX.

Non-GAAP Financial Adjustments

Non-GAAP Adjustments

Description

Portfolio transformation and divestiture costs

The quarters and nine months ended September 30, 2026 and 2025 include separation costs incurred in advance of the completion of certain divestitures.

Customer bankruptcy

The quarter and nine months ended September 30, 2026 include a net pre-tax charge of approximately $0.4 billion related to a customer bankruptcy at Pratt & Whitney. The nine months ended September 30, 2025 includes a net pre-tax charge of approximately $0.1 billion related to a customer bankruptcy at Pratt & Whitney. The charges primarily relate to contract asset exposures with specific customers. Management has determined that the nature and significance of these charges is considered unusual and, therefore, not indicative of the Company's ongoing operational performance.

Gain on sale of businesses, net of transaction and other related costs

The quarters and nine months ended September 30, 2025 include a pre-tax gain, net of transaction and other related costs, of $0.1 billion associated with the completed sale of the actuation and flight control business at Collins. Management has determined that the nature of the net gain on this divestiture is considered significant and non-operational and, therefore, not indicative of the Company's ongoing operational performance.

Gains on investments

The quarter and nine months ended September 30, 2026 include a pre-tax gain of $159 million and $229 million, respectively, related to the increase in fair value on certain investments. The nine months ended September 30, 2025 includes a pre-tax gain of $41 million related to the increase in fair value on an investment. Management has determined that the nature of the gains on these investments is considered significant and non-operational and, therefore, not indicative of the Company's ongoing operational performance.

Tax audit settlements and closures

The nine months ended September 30, 2025 includes a tax benefit of $59 million and a pre-tax benefit on the reversal of $54 million of interest accruals both recognized as a result of the closure of the examination phase of multiple state tax audits.

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202.384.2474

Investor Contact
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SOURCE RTX

RTX said over $81 billion in new commercial and defense awards during the latest third quarter pushed the defense contractor's total backlog to a record $340 billion.

GE Aerospace and RTX both beat estimates last quarter and raised guidance, but Wall Street already prices in another raise before either company says a word. Find out what the earnings releases on Tuesday morning need to show to keep…

GE Aerospace (NYSE:GE | GE Price Prediction) and RTX (NYSE:RTX) both report third-quarter results on Tuesday, October 20, 2026, before the opening bell. Because they report the same morning, the two releases together will reveal how strong aftermarket and defense demand truly are.

Raised Guidance Sets a Higher Bar This Quarter
GE Aerospace posted second-quarter adjusted earnings per share (EPS) of $2.02, against a $1.86 consensus, as revenue rose 21.1% to $13.35 billion. Free cash flow reached $3.03 billion, and management raised full-year adjusted EPS guidance to $7.65 to $7.85.

RTX also beat estimates, reporting $1.89 per share against the $1.66 consensus. CEO Chris Calio pointed to “16 percent organic sales growth” and “$2.9 billion of free cash flow,” adding that the backlog was “up 22 percent year over year.” RTX raised adjusted EPS guidance to $7.10 to $7.25. That is the bar the third quarter has to clear.

In April, Jim Cramer called both stocks bargains after they sold off despite strong earnings. Since then, the two stocks have diverged significantly. RTX is up 20.7% over the past year, while GE Aerospace has gained 4.7%.

Consensus Estimates for Both Companies

Metric
GE Aerospace
RTX

Q3 2026 EPS consensus
$1.99
$1.78

Q3 2025 reported EPS
$1.66
$1.70

Implied EPS growth
19.9%
4.7%

Q3 2026 revenue consensus
$12.84B
$24.11B

Implied revenue growth
5.4%
7.2%

FY2026 EPS consensus
$7.92
$7.25

FY2026 EPS growth
24.4%
15.3%

FY2026 revenue consensus
$50.34B
$96.19B

FY2026 revenue growth
9.8%
8.6%

Aftermarket Momentum Meets Production Limits
At GE Aerospace, start with services. Commercial services revenue rose 26% last quarter, and the full-year plan calls for services growth in the low 20s. LEAP deliveries face a hard comparison against the 40% jump a year ago. Free cash flow also needs to stay on pace for the $8.9 to $9.2 billion target.

Supply is the other test. Cramer noted on September 8, 2026, that GE Aerospace spent nearly $12 billion to buy castings manufacturer Consolidated Precision Products. He called that business critical for commercial aircraft and defense, “both of which are booming now.” Look for any early read on how the deal supports output.

At RTX, the Raytheon segment grew 18% last quarter on Patriot, Standard Missile, and AMRAAM volume. Pratt & Whitney’s commercial aftermarket rose 25%, though GTF powder metal inspections and tariffs remain open risks. Odd Lots guest Chris Power described the capacity problem on September 21, 2026: “You can have the best Raytheon missile, but if you literally can’t just make mass, which is ultimately a production issue, there’s no choice.”

The comparison is also hard. A year ago, RTX booked $37 billion in new awards and generated $4.03 billion of free cash flow.

Estimates Already Assume Another Guidance Raise
Full-year EPS consensus already clears the high end of guidance at both companies. For GE Aerospace, analysts expect $7.92 against a $7.85 ceiling. For RTX, the figure is $7.25 against $7.25. Sentiment toward RTX has remained warm. On October 9, 2026, Cramer said, “Instead of Microsoft, I want to go with RTX and I’m going to go with RTX.” If either company holds guidance flat, that guidance will matter more than the beat.

Contact [email protected] for any questions or corrections.

Modern warfare demands a delicate balancing act. Global powers are actively modernizing legacy nuclear deterrence systems while simultaneously scrambling to counter cheap, asymmetric drone swarms. Capturing defense sector spending on both ends of this spectrum requires an integrated manufacturing footprint.

RTX Today

$191.30 +4.36 (+2.33%)

As of 11:36 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$156.10▼

$226.881.53%

33.71

$226.75

Raytheon, a business unit of RTX Corporation NYSE: RTX, recently secured an $8 billion sole-source nuclear command-and-control modernization award alongside its first international counter-drone contract. These dual wins position RTX at the center of the world's most critical defense priorities.

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With revenue pathways locked through approximately 2036, urgent munitions restocking driving production floors, and high-margin export streams launching in the Middle East, defense contract momentum is transitioning into sustained cash-flow expansion. As military budgets adapt to overlapping global conflicts, the broader aerospace sector is re-rating. A recent pullback in RTX's stock price offers a disciplined entry point into a defense heavyweight possessing unmatched multi-decade visibility.

Arming Two Fronts: Strategic and TacticalAerospace investors might feel they have to choose between high-end legacy prime contractors and nimble tactical technology firms. Raytheon breaks that assumption. The defense giant just landed an $8 billion sole-source indefinite-delivery/indefinite-quantity contract to modernize the U.S. Air Force's Nuclear Command, Control, and Communications terminals. Running through late 2036, this agreement ensures Raytheon will build and sustain the communications architecture connecting the nation's strategic nuclear triad for the next decade.

Simultaneously, Raytheon announced a $729 million award to deliver the Low, Slow, Small Unmanned Aircraft Integrated Defeat System to the U.S. Army, Qatar, and Jordan. This package integrates the Ku-band Radio Frequency Sensor radar with the Coyote drone interceptor. What makes this particular award notable is its reach. It marks the first international export of the Coyote and KuRFS platforms.

This is the modern defense barbell in action. Defense budgets are currently allocating heavy capital to deter existential threats while also funding immediate solutions to daily drone skirmishes. Capturing both ends of this spending spectrum creates a resilient revenue base for Raytheon.

Locking in a Decade of Defense RevenueSecuring a 10-year sole-source agreement for nuclear communications provides a predictable floor for long-term revenue. While the initial funded obligation for the contract sits at around $800,000, the sole-source structure effectively locks in future congressional appropriations. Raytheon does not have to fight for this specific budget allocation every year, as the long-term acquisition pathway is already cemented into the military supply chain.

On the tactical side, the roughly $729 million counter-drone contract acts as a gateway to high-margin recurring revenue. Foreign Military Sales traditionally carry more favorable margins than domestic procurement.

By exporting the KuRFS and Coyote systems to allied nations like Qatar and Jordan, Raytheon establishes a global footprint for its tactical hardware. Air defense is not a one-time purchase. Once a nation installs the radar systems and launchers, it must continually restock the interceptor missiles to maintain readiness.

This creates a consumable razor-and-blade business model where early international agreements yield decades of profitable restocking orders. As global demand for drone mitigation rises, Raytheon is positioning itself as the primary supplier for allied nations.

Restocking the Global ArsenalThe Pentagon is aggressively replenishing inventory depleted by ongoing global operations. The Department of Defense recently awarded Raytheon a $6.3 billion multi-year contract for SM-3 Block IB ballistic missile interceptors. When layered on top of the approximate $24.4 billion Standard Missile-6 production enterprise, the sheer volume of interceptor demand becomes clear. Active combat theaters are consuming munitions faster than supply chains can produce them, converting authorized defense budgets directly into near-term backlog expansion.

Raytheon is also demonstrating a level of operational agility rarely seen among legacy defense primes. The business completed three successful test flights for its upgraded Coyote Block 2C+RM platform in just 15 months.

This rapid development cycle contrasts sharply with the slower, single-digit organic growth profiles currently observed at peers like Lockheed Martin Corporation NYSE: LMT and General Dynamics Corporation NYSE: GD. Raytheon's ability to innovate quickly and scale production lines translates directly into margin capture. When the military needs immediate solutions for active combat zones, contractors that can bypass years of bureaucratic testing phases win the lucrative replenishment orders.

Cash Flow Shields Against Market ShocksFrom a fundamental perspective, defense contractors often trade at a premium due to their insulated revenue streams. RTX currently trades at a trailing price-to-earnings ratio near 33x, which might appear elevated at first glance. Looking ahead to projected earnings, the forward multiple compresses to about 26x. This re-rating is supported by Wall Street consensus estimates lifting fiscal year 2027 earnings projections toward $7.87 per share.

Raytheon generates healthy operating cash flow of around $9.58 per share, easily covering its dividend yield of approximately 1.6%. For investors wary of macroeconomic headwinds, the stock offers a remarkably low beta of 0.31, indicating minimal correlation with broader market swings.

Beyond government contracts, defense is only one side of the ledger. Raytheon benefits from an accelerating commercial aerospace aftermarket. The Pratt & Whitney and Collins Aerospace divisions are riding a wave of commercial maintenance, repair, and overhaul demand, with analysts projecting roughly 11.6% growth in this segment through 2027.

Airlines are keeping older planes in service longer because new aircraft deliveries are delayed across the manufacturing industry, directly benefiting engine makers and parts suppliers. This recurring commercial maintenance revenue provides a cash cushion that buffers against any temporary political friction in defense spending.

Securing a Position in the Aerospace ShieldWith third-quarter earnings approaching, the market will look for evidence that recent contract momentum is flowing into operating margins. During the second quarter, Raytheon beat expectations, posting earnings of $1.89 per share against a $1.66 estimate on approximately $24.71 billion in revenue.

RTX Stock Forecast Today12-Month Stock Price Forecast:
$226.75
20.14% Upside

Moderate Buy
Based on 27 Analyst Ratings

Current Price$188.74High Forecast$265.00Average Forecast$226.75Low Forecast$195.00RTX Stock Forecast Details

Shares are trading around $186, down about 18% from their 52-week peak near $226.88. This consolidation comes despite average analyst price targets around $227, implying healthy upside over the coming year.

The recent string of multi-billion-dollar awards confirms that global demand for both strategic deterrence and tactical air defense is accelerating.

With a fortified balance sheet, expanding foreign military sales, and a 10-year runway in nuclear communications, the fundamental thesis remains intact. Cautious investors might consider evaluating positions during this pullback, securing a defensive asset with a clear trajectory for multi-year expansion.

Should You Invest $1,000 in RTX Right Now?Before you consider RTX, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and RTX wasn't on the list.

While RTX currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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In its upcoming report, RTX (RTX - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.76 per share, reflecting an increase of 3.5% compared to the same period last year. Revenues are forecasted to be $23.84 billion, representing a year-over-year increase of 6.1%.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific RTX metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts predict that the 'Adjusted Net Sales- Collins Aerospace' will reach $8.06 billion. The estimate suggests a change of +5.7% year over year.

Analysts' assessment points toward 'Net Sales- Raytheon' reaching $7.67 billion. The estimate indicates a year-over-year change of +8.9%.

The consensus estimate for 'Adjusted Net Sales- Pratt & Whitney' stands at $8.96 billion. The estimate points to a change of +6.4% from the year-ago quarter.

The consensus among analysts is that 'Operating Profit- Collins Aerospace- Adjusted' will reach $1.37 billion. The estimate is in contrast to the year-ago figure of $1.19 billion.

It is projected by analysts that the 'Operating Profit- Raytheon- Adjusted' will reach $950.81 million. The estimate is in contrast to the year-ago figure of $859.00 million.

Analysts forecast 'Operating Profit- Pratt & Whitney- Adjusted' to reach $760.55 million. The estimate is in contrast to the year-ago figure of $751.00 million.

View all Key Company Metrics for RTX here>>>

RTX shares have witnessed a change of -5.3% in the past month, in contrast to the Zacks S&P 500 composite's +1.4% move. With a Zacks Rank #2 (Buy), RTX is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? RTX (RTX - Free Report) , which belongs to the Zacks Aerospace - Defense industry, could be a great candidate to consider.

This an aerospace and defense company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.48%.

For the last reported quarter, RTX came out with earnings of $1.89 per share versus the Zacks Consensus Estimate of $1.66 per share, representing a surprise of 13.86%. For the previous quarter, the company was expected to post earnings of $1.52 per share and it actually produced earnings of $1.78 per share, delivering a surprise of 17.11%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for RTX lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

RTX currently has an Earnings ESP of +0.15%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 20, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

RTX Corporation (NYSE:RTX) will release earnings for its third quarter before the opening bell on Tuesday, Oct. 20.

Analysts expect the Arlington, Virginia-based company to report quarterly earnings of $1.77 per share, up from $1.70 per share in the year-ago period. The consensus estimate for RTX’s quarterly revenue is $24.05 billion. It reported $22.48 billion last year, according to Benzinga Pro.

On Oct. 13, RTX’s Raytheon was awarded $729 million in counter-drone contracts for U.S., Qatar, and Jordan.

Shares of RTX gained 1.7% to trade at $186.09 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

TD Cowen analyst Gautam Khanna maintained a Buy rating and cut the price target from $240 to $225 on Oct. 9, 2026. This analyst has an accuracy rate of 69%. UBS analyst Gavin Parsons maintained a Neutral rating and raised the price target from $198 to $215 on July 24, 2026. This analyst has an accuracy rate of 59%. RBC Capital analyst Ken Herbert maintained an Outperform rating and increased the price target from $230 to $250 on July 24, 2026. This analyst has an accuracy rate of 73%. Susquehanna analyst Charles Minervino maintained a Positive rating and raised the price target from $235 to $245 on July 24, 2026. This analyst has an accuracy rate of 72%. Wells Fargo analyst David Strauss maintained the stock with an Equal-Weight rating and increased the price target from $200 to $230 on July 24, 2026. This analyst has an accuracy rate of 74%. Considering buying RTX stock? Here’s what analysts think:

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: RTX (RTX - Free Report) In July 2023, Raytheon Technologies was renamed RTX Corporation. In April 2020, Raytheon Technologies was formed as a result of the merger between United Technologies and Raytheon Company. Based in Arlington, VA, RTX has emerged as an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. The company currently operates through three business segments.

RTX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. RTX has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.8% for the current fiscal year.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $7.22 per share. RTX also boasts an average earnings surprise of +14.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RTX should be on investors' short list.

Key Takeaways RTX completed three successful tests of its upgraded Coyote Block 2C RM counter-drone system.RTX's Coyote upgrade adds a tactical rocket motor, new seeker and warhead to address broader drone threats.Rising counter-drone demand from the United States and its allies could support RTX's defense growth. RTX Corporation (RTX - Free Report) is positioned to benefit from growing demand for counter-drone technologies as military forces seek more effective ways to address evolving unmanned aerial threats. The increasing use of drones in surveillance and combat has raised the need for systems that can detect, track and neutralize threats quickly and efficiently.

RTX’s Raytheon business is advancing its Coyote interceptor family to address these requirements. On Oct. 12, 2026, Raytheon announced the successful completion of three tests of its upgraded Coyote Block 2C+RM system, progressing from concept to testing in 15 months. The development builds on existing Coyote variants, which have intercepted hundreds of drones.

The upgrade includes a tactical rocket motor designed to improve launch speed and engagement times, along with a new seeker and warhead intended to address a broader range of drone threats. Initial testing also demonstrated integration with the existing counter-drone architecture, supporting the system’s potential deployment within established defense networks.

The program highlights RTX’s focus on improving proven technologies to meet changing battlefield requirements. A common design across the Coyote family could also help the company scale its solutions across different counter-drone missions.

As the United States and its allies invest in protecting military bases, personnel and critical infrastructure from unmanned threats, demand for counter-drone systems could create opportunities for RTX. Further testing, integration and eventual procurement will be important to the program’s commercial prospects.

Defense Stocks to Keep on the RadarGrowing investment in counter-drone technology could also benefit defense contractors developing systems to detect and defeat unmanned aerial threats.

Lockheed Martin (LMT - Free Report) : Lockheed Martin develops integrated air and missile defense systems, including PAC-3 interceptors, supporting demand for technologies that detect and neutralize incoming threats.

Northrop Grumman (NOC - Free Report) : Northrop Grumman provides advanced sensors, command-and-control systems, and electronic warfare technologies that can support drone detection, threat identification and integrated defense operations.

The Zacks Rundown for RTXShares of RTX have surged 17.1% in the past year against the industry’s 18.9% decline.

Image Source: Zacks Investment Research

The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.49X compared with its industry’s average of 2.10X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has remained the same over the past 60 days.

Image Source: Zacks Investment Research

RTX stock currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Raytheon funding development of Coyote Block 2C+RM upgrades to defeat the latest advanced drone threats

, /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, successfully completed three tests of its new Coyote® Block 2C+RM upgrades, advancing the program from concept to testing in just 15 months. These Raytheon-funded developmental testing events show rapid progress of current Coyote Block 2C+RM interceptor upgrades to support an urgent joint U.S. military mission to counter evolving drone threats.

The Coyote Block 2C+RM upgrade builds on the combat–proven performance of current Coyote variants, which have intercepted hundreds of drones. This effort intends to integrate a rocket motor for faster launch and flight, along with a new seeker and warhead designed to defeat all classes of current and emerging drone threats.

"With a common backbone, Raytheon can rapidly scale the Coyote family across counter-drone missions — so we're accelerating the pace of innovation," said Tom Laliberty, president of Land & Air Defense Systems at Raytheon. "Coyote Block 2C+RM is the latest example of how we're investing to deliver critical upgrades to combat-proven technology that give service members a decisive advantage on the battlefield."

The initial test series included several first-of-its-kind events, including confirmation of initial integration with the current counter-drone architecture and the first launches of a Coyote effector equipped with a tactical rocket motor to improve threat engagement times and faster successive shots.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

Contract provides long-term production stability for critical missile defense capability

, /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has secured a five-year contract, with two additional option years, valued up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM‑3 IB) interceptors.

The contract, which is part of the recent landmark agreements between Raytheon and the Department of War, supports urgent replenishment of missile defense inventory that has been successfully used in combat and remains central to protecting U.S. forces, allies and critical infrastructure.

"This award underscores Raytheon's commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them," said Raytheon President Phil Jasper. "SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world."

RTX has made significant investments to expand capacity and accelerate production of critical munitions including the Standard Missile Family. Production under this contract will be primarily completed at Raytheon facilities in Tucson, Ariz. and Huntsville, Ala.

SM‑3 IB is a ship‑ and land‑based missile defense interceptor designed to defeat short‑ to intermediate‑range ballistic missiles during the midcourse phase of flight. It was first used in combat in 2024 and is an integral part of the U.S. Navy's extended-range integrated air and missile defense together with SM-3 IIA and the rest of the Standard Missile family.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact [email protected]

SOURCE RTX

Key Takeaways RTX could benefit from rising RAM missile demand as the U.S. Navy and allies strengthen naval defenses.RTX secured an $11.6 million contract for RAM missile spares, with work extending through December 2029.RTX shares gained 11.1% in a year against the industry's 20.6% decline, despite trading at a premium. RTX Corporation (RTX - Free Report) is well-positioned to benefit from rising demand for naval missile defense as the U.S. Navy and allied forces seek to strengthen protection against increasingly advanced airborne threats. The company’s Raytheon business has a long-standing role in the Rolling Airframe Missile (RAM) program, supporting the continued production and sustainment of the system.

RAM provides ships with short-range defense against threats such as anti-ship missiles and other airborne targets. Its ability to respond quickly to incoming threats makes it an important layer of protection for naval platforms. Continued investment in ship survivability and integrated air defense should support demand for missile systems and related technologies.

RTX received an $11.6 million Navy contract modification for spare Seeker Head Assemblies supporting RAM Block 1/2 guided missile round packs. The award, with work extending through December 2029, reflects the recurring sustainment demand associated with deployed missile systems.

Beyond RAM, RTX has a broad portfolio of missile defense and precision weapons that serves the U.S. military and international customers. Growing efforts to replenish missile inventories, modernize naval fleet and strengthen air defenses could create additional opportunities across the company’s defense business.

With its established missile technologies and extensive installed base, RTX is positioned to benefit from continued spending on naval protection and weapons readiness. Sustained demand for new missiles, upgrades and lifecycle support could provide steady growth opportunities over the long term.

Defense Stocks to Keep on the RadarContinued investment in naval missile defense and weapons sustainment could also benefit other defense contractors with established missile portfolios.

Lockheed Martin (LMT - Free Report) : Lockheed Martin develops advanced missile and air defense systems, including PAC-3 interceptors and other precision weapons. Continued U.S. and allied demand supports opportunities across its missile portfolio.

Northrop Grumman (NOC - Free Report) : Northrop Grumman provides guidance, propulsion and defense electronics for a range of missile programs. Its technologies support the development and sustainment of precision weapons and integrated defense systems.

The Zacks Rundown for RTXShares of RTX have surged 11.1% in the past year against the industry’s 20.6% decline.

Image Source: Zacks Investment Research

The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.41X compared with its industry’s average of 2.07X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has remained the same the over the past 60 days.

Image Source: Zacks Investment Research

RTX stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RTX (RTX - Free Report) closed at $180.26 in the latest trading session, marking a -1.65% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.22%.

The stock of an aerospace and defense company has fallen by 7.81% in the past month, leading the Aerospace sector's loss of 8.35% and undershooting the S&P 500's gain of 1.4%.

The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. The company is slated to reveal its earnings on October 20, 2026. In that report, analysts expect RTX to post earnings of $1.75 per share. This would mark year-over-year growth of 2.94%. Simultaneously, our latest consensus estimate expects the revenue to be $23.84 billion, showing a 6.06% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.22 per share and revenue of $96.06 billion, indicating changes of +14.79% and +8.41%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, RTX holds a Zacks Rank of #3 (Hold).

In the context of valuation, RTX is at present trading with a Forward P/E ratio of 25.4. This expresses a premium compared to the average Forward P/E of 21.54 of its industry.

Meanwhile, RTX's PEG ratio is currently 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.66.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

RTX (RTX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this an aerospace and defense company have returned -7.8% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Aerospace - Defense industry, to which RTX belongs, has lost 10% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

RTX is expected to post earnings of $1.75 per share for the current quarter, representing a year-over-year change of +2.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $7.22 for the current fiscal year indicates a year-over-year change of +14.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $7.76 indicates a change of +7.6% from what RTX is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, RTX is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For RTX, the consensus sales estimate for the current quarter of $23.84 billion indicates a year-over-year change of +6.1%. For the current and next fiscal years, $96.06 billion and $102.54 billion estimates indicate +8.4% and +6.7% changes, respectively.

Last Reported Results and Surprise HistoryRTX reported revenues of $24.71 billion in the last reported quarter, representing a year-over-year change of +14.5%. EPS of $1.89 for the same period compares with $1.56 a year ago.

Compared to the Zacks Consensus Estimate of $22.83 billion, the reported revenues represent a surprise of +8.21%. The EPS surprise was +13.86%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

RTX is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about RTX. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Nasdaq Hits Fresh Highs While Dow Slips and Small Caps Struggle for DirectionPR NewswireNEW YORK, Oct. 5, 2026NEW YORK, Oct. 5, 2026 /PRNewswire/ -- Stock Preac

, /PRNewswire/ -- Stock Preachers News Commentary - Wall Street closed out the week split down the middle, with the Nasdaq Composite punching to a 27,190.86 close on a 1.19% daily jump while the Dow Jones Industrial Average slid to 51,176.96, down 1.26% for the week. The S&P 500 added 0.73% on the day to 7,722.72 even as it logged a weekly loss, and the Russell 2000 inched up 0.94% to 2,832.90 but remains down for the week. Gold, silver and copper all advanced while crude oil fell and Treasury yields crept higher, setting up a market still deciding which signal to trust. Active Companies from around the markets with current developments this week include: RTX (NYSE: RTX), Eli Lilly and Company (NYSE: LLY), International Business Machines Corporation (NYSE: IBM), Integra LifeSciences Holdings Corporation (NASDAQ: IART), and Trilogy Metals Inc. (NYSE American: TMQ).

The Dow's 51,176.96 close came after a week that touched a high of 51,780.50 and a low of 50,546.54, leaving the blue-chip index with an RSI14 of 39.4, suggesting it is pushing toward oversold territory even as it holds a 6.48% year-to-date gain. The S&P 500 closed at 7,722.72 with an RSI14 of 54.8, sitting between its 10-day SMA support of 7,707.82 and resistance at 7,771.48, a level tied to both late August and late September highs.

The Nasdaq Composite's 27,190.86 close puts it right at a support level tied to its early June 2026 high, with resistance just above at the 52-week high of 27,353.68 notched during the week. Its RSI14 reading of 62.1 reflects the index's strength, aided by a 16.99% year-to-date advance. The Russell 2000 closed at 2,832.90, just above its mid-September low and 10-day moving averages near 2,832.37, with an RSI14 of 39.6 that mirrors the Dow's hesitancy.

Volatility ticked higher as the VIX closed at 16.21, up 0.90 on the day, while the Nasdaq-focused VXN eased to 21.20. In commodities, gold rose 0.64% on the day to $4,189.10 an ounce and silver jumped 3.76% to $62.24, while WTI crude slipped 0.58% to $90.58 a barrel. The 10-year Treasury yield rose 4 basis points on the day to 5.28%, up 10 basis points for the week.

The full report also breaks down the week's key support and resistance ladder for each major index and looks ahead to what could move markets in the week to come.

CONTINUED... Read this and more news for RTX (NYSE: RTX), Eli Lilly and Company (NYSE: LLY), International Business Machines Corporation (NYSE: IBM), Integra LifeSciences Holdings Corporation (NASDAQ: IART), and Trilogy Metals Inc. (NYSE American: TMQ) at: https://stockpreachers.com/articles/the-week-ahead-big-caps-hold-the-line-small-caps-hunt-for-footing/

In other industry developments and happenings in the market this week include:

RTX (NYSE: RTX) Raytheon, an RTX business, secured a five-year contract with two additional option years valued up to $24.4 billion for Standard Missile-6 (SM-6) interceptors, a munition capable of both offensive strikes and missile defense missions for the U.S. Navy.

"SM-6's multi-mission capability is vital to our customer, and Raytheon is intensely focused on meeting the demand," said Raytheon President Phil Jasper. "By continuously investing in our operations and facilities, we are removing constraints and boosting capacity to ensure we deliver this critical capability our sailors depend on."

The company said it has grown its skilled workforce, strengthened partnerships across the defense industrial base and automated production to support higher output. SM-6 is described as the only combat-proven weapon able to perform anti-air warfare, anti-surface warfare and ballistic missile defense.

Eli Lilly and Company (NYSE: LLY) The FDA approved an expanded indication for Lilly's Jaypirca (pirtobrutinib) as a first-line treatment for adult patients with previously untreated chronic lymphocytic leukemia or small lymphocytic lymphoma without a known 17p deletion, based on the BRUIN CLL-313 trial.

In the trial, at a median follow-up of 28 months, progression-free survival was significantly improved with pirtobrutinib compared to bendamustine plus rituximab, with a hazard ratio of 0.20. Overall response rate was 94% in the pirtobrutinib arm versus 81% in the comparator arm.

"This additional approval for Jaypirca, based on BRUIN CLL-313, marks a significant step forward, expanding its potential to reach more patients who may benefit," said Jacob Van Naarden, executive vice president and president of Lilly Oncology.

International Business Machines Corporation (NYSE: IBM) Hagens Berman Sobol Shapiro is investigating IBM after shares fell 25% on July 14, 2026, erasing more than $68 billion in market capitalization following disclosure of a shortfall in the company's Z mainframe performance.

CEO Arvind Krishna said "[w]hat played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing," adding that "numerous large deals failed to close."

"Based in part on the abruptness of the bad news, we are looking into whether and when the Company may have had information raising the probability that large deals were unlikely to timely close during IBM's second quarter," said Reed Kathrein, the Hagens Berman partner leading the investigation.

Integra LifeSciences Holdings Corporation (NASDAQ: IART) Integra LifeSciences lowered its full-year 2026 guidance following a July flooding event at its Cincinnati facility, now expecting third quarter revenue of approximately $410 million to $412 million and adjusted earnings per diluted share of $0.55 to $0.59.

Full-year revenue guidance was cut to a range of $1.634 billion to $1.654 billion from $1.654 billion to $1.695 billion, with adjusted EPS guidance lowered to $2.30 to $2.40 from $2.40 to $2.50. The flooding is estimated to have cut third quarter revenue by approximately $7 million, with a $15 million to $20 million impact expected in the fourth quarter.

"Our third quarter results were impacted by the July flooding event at our Cincinnati facility," said Stuart Essig, Chairman and Chief Executive Officer. "While we are lowering our full-year revenue and adjusted EPS outlook for 2026, we continue to expect strong cash generation, including greater than $85 million of operating cash flow in the third quarter."

Trilogy Metals Inc. (NYSE American: TMQ) Trilogy Metals reported a cash balance of $31.2 million and adjusted working capital of $30.3 million as of August 31, 2026, along with the closing of a $35.6 million strategic equity investment from the Department of War on September 11, 2026.

The company reported net income of $0.2 million for the third quarter, compared to a net loss of $1.7 million a year earlier, while the nine-month period showed a net loss of $13.2 million versus a $7.5 million loss in the prior-year period.

"The third quarter and the weeks that followed have been transformational for Trilogy Metals," said Tony Giardini, President and CEO. "With a defined permitting timeline, the investment by the U.S. Government, and a clear line of sight to a Record of Decision, Arctic is well positioned to become a cornerstone of a secure, domestic copper supply chain."

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