Overview

• US aerospace and defense firm's Q2 adjusted revenue rose 14%, beating analyst expectations

• Adjusted EPS for Q2 grew 21% and beat analyst expectations

• Company raised 2026 outlook for adjusted sales, adjusted EPS, and free cash flow

Outlook

• RTX raises 2026 adjusted sales outlook to $95.0-$96.0 bln from $92.5-$93.5 bln

• Company now sees 2026 organic sales growth of 8-9%, up from 5-6%

• RTX expects 2026 adjusted EPS of $7.10-$7.25, up from $6.70-$6.90

Result Drivers

• COMMERCIAL AFTERMARKET GROWTH - Collins Aerospace and Pratt & Whitney reported double-digit increases in commercial aftermarket sales, driven by higher volume and increased demand for parts, repairs, and upgrades

• DEFENSE SALES INCREASE - All segments reported higher defense sales, with Raytheon benefiting from increased volume and favorable mix in land, air, and space defense systems

• MARGIN EXPANSION - Margin expansion across all three segments contributed to profit growth, supported by higher volumes and improved productivity

Company press release: ID:nPn3L4x31a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue		$24.71 bln
Q2 Adjusted Revenue	Beat	$24.70 bln	$22.89 bln (16 Analysts)
Q2 Adjusted EPS	Beat	$1.89	$1.66 (17 Analysts)
Q2 EPS		$1.57

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for RTX Corp is $220.00, about 12.9% above its July 22 closing price of $194.88

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• July 21 - Pratt & Whitney says engine maintenance disruption easing

• July 21 - Northrop Grumman raises 2026 forecasts on strong weapons demand

• July 22 - Teledyne lifts annual profit forecast, tops quarterly results estimates

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