RTX beats Q3 earnings expectations, lifts guidance amid robust demand

RTX

20/10/2026 12:05

Overview
US aerospace and defense firm's Q3 adjusted revenue rose 11%, beating analysts' expectations
Adjusted EPS for Q3 grew 33%, beating analyst expectations
Company raised 2026 outlook for adjusted sales, adjusted EPS, and free cash flow

Outlook
RTX raises 2026 adjusted sales outlook to $97.0-$97.5 bln from $95.0-$96.0 bln
Company now expects 2026 adjusted EPS of $7.65-$7.75, up from $7.10-$7.25
RTX sees 2026 free cash flow at $9.0-$9.2 bln, up from $8.50-$8.75 bln

Result Drivers
COMMERCIAL AEROSPACE DEMAND - RTX said double-digit organic sales growth was driven by higher volume in commercial original equipment and aftermarket, especially narrowbody and widebody platforms, as well as growth in modifications, upgrades, and parts and repair
DEFENSE PROGRAMS - Higher volume across multiple defense programs, including naval, land, and air defense systems such as Patriot, Standard Missile, and Tomahawk, contributed to sales growth
IEEPA RECOVERY - Adjusted EPS and segment operating profit benefited from IEEPA cost recovery, including $0.25 in adjusted EPS and $0.4 bln in segment profit

Company press release: ID:nPn8prRpTa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$24.97 bln
 
Q3 Adjusted Revenue
Beat
$25 bln
$24.08 bln (17 Analysts)
Q3 Adjusted EPS
Beat
$2.26
$1.78 (19 Analysts)
Q3 EPS
 
$1.89
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and 1 "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 Corporation is $227.50, about 18.4% above its October 19 closing price of $192.11
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads
Oct 20 - Northrop Grumman Q3 revenue slightly misses; lifts 2026 profit guidance on strong demand
Oct 20 - GE Aerospace Q3 adjusted revenue beats on strong demand; lifts 2026 outlook
Oct 19 - Ukraine's Zelenskiy discusses speeding up supplies of Patriots with Lockheed Martin

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)