RTX (RTX) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $22.1 billion, up 10% organically and 9% year-over-year, with growth across all segments and robust demand in both commercial and defense markets.

• Adjusted EPS rose 21% to $1.78, while GAAP EPS was $1.51, including $0.27 of acquisition accounting adjustments.

• Net income attributable to common shareowners was $2.06 billion, with adjusted net income at $2.4 billion, up 22% year-over-year.

• Free cash flow was $1.3 billion, up $500 million and 65% year-over-year; operating cash flow reached $1.9 billion.

• Backlog reached a record $271 billion, up 25% year-over-year, with $162 billion commercial and $109 billion defense.

Financial highlights

• Adjusted segment operating profit was $2.9–$3.0 billion, up 14% year-over-year, with margin expanding to 12.6%.

• Consolidated segment margin expanded by 70 basis points, with all segments contributing.

• Adjusted EPS benefited by $0.08 from a lower effective tax rate; effective tax rate decreased to 14.4–15.6%.

• GAAP EPS from continuing operations was $1.51, including $0.27 of acquisition accounting adjustments.

• Product sales were $15.8 billion and services sales $6.3 billion, both showing year-over-year growth.

Outlook and guidance

• Full-year adjusted sales guidance raised to $92.5–$93.5 billion, with organic sales growth expected at 5–6%.

• Adjusted EPS guidance increased to $6.70–$6.90, up $0.10 from prior range.

• Free cash flow outlook maintained at $8.25–$8.75 billion.

• Defense sales now expected to grow mid to high single digits for the year.

• Approximately 25% of remaining performance obligations expected to be recognized as revenue over the next 12 months.