RTX lifts 2026 forecasts as aerospace, defense demand drives record backlog (updated)

RTX

20/10/2026 12:11

Updates share movement in paragraph 2, adds tariff refunds in paragraphs 4 and 12, graphic on backlog
By Mike Stone and Aatreyee Dasgupta
Oct 20 (Reuters) - RTX RTX.N raised its full-year profit and revenue forecasts on Tuesday as sustained demand for commercial aerospace services and military programs pushed its backlog to a record $340 billion and lifted third-quarter results.
Shares of the Pratt & Whitney and Raytheon parent were up 2% in early trading.
The company now expects 2026 adjusted earnings per share of $7.65 to $7.75, up from its prior forecast of $7.10 to $7.25.
The new midpoint of $7.70 per share includes 25 cents from IEEPA tariff refund recovery.  
The company also raised its sales forecast range to $97 billion to $97.5 billion, from $95 billion to $96 billion.
"Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," CEO Chris Calio said in a statement.
This adds to the strong performance streak of major US aerospace and defense contractors, supported by robust airline maintenance spending, growing demand for aircraft engines and parts and sustained military spending amid heightened geopolitical tensions.
Quarterly revenue at Collins Aerospace rose 10% on a 23% jump in commercial original equipment sales, while revenue at Pratt & Whitney increased 10%, helped by a 21% rise in commercial aftermarket sales.
Raytheon sales climbed 14%, driven by higher volume in naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk.
 RTX's quarterly adjusted profit came in at $2.26 per share, compared with analysts' average estimate of $1.78 per share, according to data compiled by LSEG.
     For the quarter ended September 30, sales increased 11% to $24.97 billion, compared with estimates of $24.08 billion.
On a post-earnings call, RTX executives said the company received about $300 million in IEEPA tariff refunds in the third quarter and expects another $50 million in the fourth quarter.

 (Reporting by Aatreyee Dasgupta and Mike Stone; Editing by Maju Samuel)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))