RTX (RTX) lifts guidance as record backlog reaches $340 billion

What happened

RTX Corporation (NYSE RTX) reported third-quarter 2026 results on October 20, 2026 and raised full-year 2026 guidance.

Sales were $25.0 billion, up 11 percent from a year earlier and up 12 percent organically. GAAP EPS was $1.89, while adjusted EPS was $2.26.

Operating cash flow was $2.9 billion and free cash flow was $2.1 billion. Backlog reached $340 billion, including $176 billion commercial and $164 billion defense.

RTX said it won over $81 billion of new commercial and defense awards in the quarter.

Key numbers

Metric	Latest	Change	Source
Sales	$25.0 billion	from $22.48 billion, +11%	SEC 8-K
Adjusted EPS	$2.26	from $1.70, +33%	SEC 8-K
Adjusted net income	$3.1 billion	from $2.31 billion, +34%	SEC 8-K
Free cash flow	$2.1 billion	from $4.03 billion, -47%	SEC 8-K
Backlog	$340 billion		SEC 8-K

Read more: RTX (RTX) stock analysis and investment case

Why it matters

Adjusted net income was $3.1 billion, up 34 percent year over year, and adjusted segment operating profit growth totaled $1.1 billion across all three segments.

That included $0.4 billion of IEEPA recovery, which means some of the improvement was not purely operational.

Adjusted net income increased by $780 million from $2.31 billion in the prior year quarter, and adjusted EPS rose $0.56 to $2.26.

OptimistFi's case is that RTX can turn backlog and aftermarket work into higher-quality cash flow and expanding margins.

This filing supports that view with record backlog, double-digit sales growth and higher 2026 guidance.

The company raised adjusted sales guidance to $97.0 billion to $97.5 billion from $95.0 billion to $96.0 billion, and organic sales growth to 10 to 11 percent from 8 to 9 percent.

Adjusted EPS guidance rose to $7.65 to $7.75 from $7.10 to $7.25, and free cash flow guidance rose to $9.0 billion to $9.2 billion from $8.50 billion to $8.75 billion.

The counterweight is that quarterly free cash flow fell to $2.1 billion from $4.03 billion, and adjusted EPS included $0.25 from IEEPA recovery.

Pratt Whitney also reported a $363 million customer-bankruptcy charge in the quarter, which kept part of the earnings improvement from looking purely operational.

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What's next

RTX's conference call is scheduled for Tuesday, October 20, 2026 at 8:30 a.m. ET.

That call is the next check on whether the higher 2026 ranges and the $340 billion backlog keep supporting cash flow and margins.

A reaffirmation of the raised outlook would strengthen the case, while any pullback would weaken it.

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