RTX (RTX) Q3 2026 earnings summary

Executive summary

• Q3 sales were $24.965B, up 11% reported and 12% organically; adjusted EPS was $2.26, up 33%, and free cash flow was $2.119B.

• Strong commercial aerospace and defense demand supported 39% growth in adjusted segment operating profit and 310 bps of margin expansion, including ~160 bps from IEEPA recovery.

• Awards exceeded $81B, lifting backlog to a record $340B: $176B commercial and $164B defense.

Financial highlights

• Adjusted segment operating profit was $3.890B versus $2.804B; adjusted segment margin was 15.2% versus 12.1%.

• Adjusted EPS was $2.26 versus $1.70, including $0.25 of IEEPA recovery; GAAP diluted EPS was $1.89 versus $1.41.

• Operating cash flow was $2.868B, capex was $749M, and free cash flow was $2.119B versus $4.025B; free cash flow included ~$0.3B of IEEPA recovery.

• Net sales were $24.965B versus $22.478B; net income attributable to common shareowners was $2.583B versus $1.918B.

• Q3 operating profit benefited from $0.4B of tariff refunds and $0.2B of investment gains, partly offset by a $0.4B Pratt & Whitney customer-bankruptcy charge.

Outlook and guidance

• FY26 adjusted sales guidance increased to $97.0B–$97.5B from $95.0B–$96.0B; organic growth guidance rose to 10%–11% from 8%–9%.

• Adjusted EPS guidance increased to $7.65–$7.75 from $7.10–$7.25; free cash flow guidance rose to $9.0B–$9.2B from $8.50B–$8.75B.

• Adjusted effective tax rate guidance remains ~18.0%–18.5%; FY26 capex is expected to be ~$3.1B.

• Commercial OE is expected to grow high-single-digits, commercial aftermarket low-double-digits to low teens, and defense low-double-digits in FY26.