RTX Corporation raised its full-year financial outlook for the third time in 2026, citing robust demand driving double-digit organic sales growth across its commercial aerospace and defense business units. The company reported that over $81 billion in new commercial and defense awards during the third quarter contributed to a record backlog of $340 billion, split roughly evenly between $176 billion in commercial orders and $164 billion in defense.
In a significant contract awarded in September, RTX’s Raytheon unit secured an agreement from the U.S. Department of Defense worth up to $20.7 billion to accelerate production of AMRAAM missiles. Additionally, the company entered into a partnership with North Atlantic Treaty Organization allies over the summer to manufacture AMRAAM components in Europe, aiming to increase production capacity and replenish air-defense inventories amid ongoing global conflicts.
RTX reaffirmed its commitment to scaling up production of Tomahawk missiles, targeting an annual output exceeding 1,000 units in the long term. The company anticipates producing more than 400 Tomahawk missiles in 2026.
For the full year, RTX now forecasts adjusted earnings per share in a range of $7.65 to $7.75, an increase from its previous estimate of $7.10 to $7.25. The company also raised its adjusted sales forecast to between $97 billion and $97.5 billion, up from a prior projection of $95 billion to $96 billion. The updated sales guidance implies organic growth of approximately 10% to 11% for the year, ahead of analysts’ average expectations of $7.26 earnings per share on $96.3 billion in sales.
Free cash flow estimates were also updated, with RTX projecting between $9 billion and $9.2 billion for the full year, compared to an earlier range of $8.5 billion to $8.75 billion. Analysts had forecast about $8.7 billion.
In the third quarter, the company reported net income of $2.71 billion, or $1.89 per share, compared with $2.01 billion, or $1.41 per share, during the same period a year earlier. Adjusted earnings, excluding 26 cents per share in acquisition accounting adjustments and 11 cents in restructuring and other nonrecurring costs, came to $2.26 per share, surpassing analyst expectations of $1.78 per share.
Third-quarter sales rose 11% to $24.97 billion, with organic growth of 12%, exceeding estimates of $24.11 billion. Raytheon’s segment sales increased 14% to $8.03 billion, driven by higher volumes in naval programs and land- and air-defense systems such as Patriot, Standard Missile, and Tomahawk.
Pratt & Whitney posted a 10% increase in sales to $9.23 billion, supported by a 21% rise in commercial aftermarket volume and a 2% increase in military sales. However, this segment faced a $363 million pretax charge related to a customer bankruptcy, which weighed on operating profit.