◆ Inside the Latest Quarter (Q2 2026)

RTX (RTX) — the variant view

In the second quarter of 2026 RTX grew sales 14%, booked Raytheon orders at 2.4 times shipments and raised its outlook for the year.

📈 RTX valuation, revenue & earnings — P/E, P/S, revenue, EPS →

RTX's second quarter of 2026 was strong on every line. Sales were $24,708 million, up 14% and 16% organically1; operating profit was $2,811 million, an 11.4% margin23; net income rose 29% to $2,139 million and diluted earnings were $1.57 a share, or $1.89 adjusted4.

RTX segment sales, Q2 2026 ($M)8,889Pratt & Whitney8,269Raytheon8,210CollinsRTX Q2 2026 earnings release
Three segments of almost equal size.

All three segments grew. Collins sold $8,210 million and earned $1,306 million, Pratt & Whitney $8,889 million and $738 million, and Raytheon $8,269 million and $1,042 million5. Pratt's commercial aftermarket rose 25% and its military sales 23%, while its commercial original-equipment sales fell 8%6. Raytheon's sales rose 18%7.

Orders ran well ahead of sales. Raytheon booked $19.9 billion for a book-to-bill of 2.428, and RTX's backlog reached a record $289 billion, up 22% in a year910.

Cash was strong. Operating cash flow was $3,547 million against $458 million a year earlier, and free cash flow $2,878 million against a small outflow11. The year-earlier quarter included a four-week work stoppage at Pratt & Whitney12.

RTX raised its 2026 outlook to adjusted sales of $95.0 to $96.0 billion, organic growth of 8 to 9% and adjusted earnings of $7.10 to $7.25 a share13. Management expects second-half organic growth to slow to about 5% on "unique comparisons"14.

The bookings were the standout. Raytheon's $19.9 billion of orders included more than $4 billion of classified and confidential awards and $1.8 billion for AMRAAM, alongside the GEM-T orders15. On the commercial side RTX received more than $20 billion of original-equipment and aftermarket orders, including AirAsia's order for 150 A220 aircraft powered only by the GTF16.

Two items in the reconciliation are worth noting. The year-earlier quarter carried an approximately $100 million charge for a Pratt & Whitney customer bankruptcy17, which flatters the comparison, and this quarter carried a $69 million litigation matter in corporate18. RTX also paid about $150 million of powder-metal compensation in the quarter19 and agreed to sell Blue Canyon Technologies for $620 million20.

The quarter confirms the defence surge and the aftermarket. The next check is the third quarter, due on 20 October 202621; organic growth near the guided 5% would keep the year on track, and a miss would mean the first half borrowed from the second.

References
  1. ReportedSales were $24,708 million, up 14% and 16% organically; operating profit was $2,811 million, an 11.4% margin; net income rose 29% to $2,139 million and diluted earnings were $1.57 a share, or $1.89 adjusted.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  2. ReportedSales were $24,708 million, up 14% and 16% organically; operating profit was $2,811 million, an 11.4% margin; net income rose 29% to $2,139 million and diluted earnings were $1.57 a share, or $1.89 adjusted.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  3. Moat Explorer calcSales were $24,708 million, up 14% and 16% organically; operating profit was $2,811 million, an 11.4% margin; net income rose 29% to $2,139 million and diluted earnings were $1.57 a share, or $1.89 adjusted.
    Moat Explorer calculation from RTX's Form 10-K FY2025, Q2 2026 earnings release and market data ($ millions unless stated). Goodwill plus intangibles 53,343 + 31,845 = 85,188; 85,188 / 171,079 = 49.8% of total assets; other assets 171,079 - 85,188 = 85,891. Reported against adjusted EPS 2025: 6.29 - 4.96 = 1.33, of which 1.15 acquisition accounting. Return on equity 6,732 / ((65,245 + 60,156) / 2) = 10.7%. Net debt: 37,700 + 204 - 7,435 = 30,469 (December 2025); 31,858 + 5,296 + 229 - 8,305 = 29,078 (June 2026). Net interest 1,749 / operating profit 9,300 = 18.8%. Dividends paid 3,574 / free cash flow 7,940 = 45%; free cash flow covers dividends 7,940 / 3,574 = 2.2 times. Pension items 753 + 1,182 = 1,935; 1,935 / net income 6,732 = 29%. Trailing twelve months to June 2026: revenue 88,603 + 46,784 - 41,887 = 93,500; net income 6,732 + 4,198 - 3,192 = 7,738. P/E 255.27 / 7.738 = 33.0; P/S 255.27 / 93.50 = 2.73. Year-end P/E = market value / net income and P/S = market value / revenue: 2021 128.81 / 3.864 = 33.3 and 128.81 / 64.388 = 2.00; 2022 148.36 / 5.197 = 28.5 and 2.21; 2023 120.99 / 3.195 = 37.9 and 120.99 / 68.920 = 1.76; 2024 154.03 / 4.774 = 32.3 and 1.91; 2025 245.90 / 6.732 = 36.5 and 2.78; 2020 108.60 / 56.587 = 1.92 (loss year). Revenue growth since 2023: 93.50 / 68.92 - 1 = 36%; market value 255.27 / 120.99 = 2.1 times. Share price against 52-week high 189.40 / 226.88 - 1 = -16.5%. Peers: Lockheed Martin plus General Dynamics 121.09 + 92.75 = 213.84 (below RTX's 255.27); RTX / Northrop Grumman 255.27 / 73.08 = 3.5 times. Q2 2026 operating margin 2,811 / 24,708 = 11.4%. Price over 2025 adjusted EPS 189.40 / 6.29 = 30 times. 2024 legal and termination cash 1.5 / free cash flow 4.534 = 33%. Pension sensitivity about 1.0 billion per 25 basis points, so about 4 billion per point; 4,000 / equity 65,245 = 6%. Enterprise value over trailing sales 285.82 / 93.50 = 3.1 times; price over 2026 consensus adjusted EPS 189.40 / 7.24 = 26 times. Purchase obligations after 2026 about 47 - 29 = 18 billion. Forecast extension: 2028 revenue 103.18 x 1.07 = 110.40 and EPS 7.85 x 1.084 = 8.51, extending 2027 consensus growth (not consensus). — 2020-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in RTX's Forms 10-K and 10-Q, earnings releases, earnings call and market data; operands shown in the source line.
  4. ReportedSales were $24,708 million, up 14% and 16% organically; operating profit was $2,811 million, an 11.4% margin; net income rose 29% to $2,139 million and diluted earnings were $1.57 a share, or $1.89 adjusted.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  5. ReportedCollins sold $8,210 million and earned $1,306 million, Pratt & Whitney $8,889 million and $738 million, and Raytheon $8,269 million and $1,042 million.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  6. ReportedPratt's commercial aftermarket rose 25% and its military sales 23%, while its commercial original-equipment sales fell 8%.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedRaytheon's sales rose 18%.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  8. ReportedRaytheon booked $19.9 billion for a book-to-bill of 2.42, and RTX's backlog reached a record $289 billion, up 22% in a year.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  9. ReportedRaytheon booked $19.9 billion for a book-to-bill of 2.42, and RTX's backlog reached a record $289 billion, up 22% in a year.
    RTX Form 10-Q for the quarter ended 30 June 2026 - backlog of $289 billion ($170 billion commercial, $119 billion defence), remaining performance obligations, the $0.4 billion powder-metal accrual, the Blue Canyon Technologies sale, Patriot awards and the remaining repurchase authority. — Q2 2026 · publ. 23 July 2026 · source ↗
  10. ReportedRaytheon booked $19.9 billion for a book-to-bill of 2.42, and RTX's backlog reached a record $289 billion, up 22% in a year.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  11. ReportedOperating cash flow was $3,547 million against $458 million a year earlier, and free cash flow $2,878 million against a small outflow.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  12. ReportedThe year-earlier quarter included a four-week work stoppage at Pratt & Whitney.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  13. ReportedRTX raised its 2026 outlook to adjusted sales of $95.0 to $96.0 billion, organic growth of 8 to 9% and adjusted earnings of $7.10 to $7.25 a share.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  14. ReportedManagement expects second-half organic growth to slow to about 5% on "unique comparisons".
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  15. ReportedRaytheon's $19.9 billion of orders included more than $4 billion of classified and confidential awards and $1.8 billion for AMRAAM, alongside the GEM-T orders.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - defence: Raytheon bookings, book-to-bill and backlog, munitions output, framework agreements and the budget request. — Q2 2026 · publ. 24 July 2026 · source ↗
  16. ReportedOn the commercial side RTX received more than $20 billion of original-equipment and aftermarket orders, including AirAsia's order for 150 A220 aircraft powered only by the GTF.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  17. ReportedThe year-earlier quarter carried an approximately $100 million charge for a Pratt & Whitney customer bankruptcy, which flatters the comparison, and this quarter carried a $69 million litigation matter in corporate.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  18. ReportedThe year-earlier quarter carried an approximately $100 million charge for a Pratt & Whitney customer bankruptcy, which flatters the comparison, and this quarter carried a $69 million litigation matter in corporate.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  19. ReportedRTX also paid about $150 million of powder-metal compensation in the quarter and agreed to sell Blue Canyon Technologies for $620 million.
    RTX second-quarter 2026 earnings call transcript (The Motley Fool) - Raytheon bookings and book-to-bill, GTF aircraft-on-ground and MRO output, munitions output, framework agreements, the defence budget request, GTF Advantage, Collins margin plans and segment outlook - commercial: GTF fleet, maintenance output, aftermarket, orders, Collins and the outlook. — Q2 2026 · publ. 24 July 2026 · source ↗
  20. ReportedRTX also paid about $150 million of powder-metal compensation in the quarter and agreed to sell Blue Canyon Technologies for $620 million.
    RTX second-quarter 2026 earnings release, Form 8-K exhibit 99 - sales of $24.7 billion, segment results, cash flow, balance sheet and raised 2026 outlook. — Q2 2026 · publ. 23 July 2026 · source ↗
  21. ReportedThe next check is the third quarter, due on 20 October 2026; organic growth near the guided 5% would keep the year on track, and a miss would mean the first half borrowed from the second.
    RTX statistics - PE ratio 33.34, forward PE 25.68, PS ratio 2.73, P/FCF 22.38, enterprise value $285.82B, dividend yield 1.54%, payout ratio 51.41%. — September 2026 · publ. 25 September 2026 · source ↗
Sources
Generated September 28, 2026