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RTX (RTX) Q2 2026 Earnings: 16% Organic Growth Drives a Guidance Raise

Steven Levine, Founder of TickerPosts and OpenClassActions.com2 min readLast reviewed

RTX delivered one of the broadest industrial growth reports of the quarter.

Second-quarter sales rose 14% to $24.7 billion and increased 16% organically. All three major businesses grew, free cash flow reached $2.9 billion, and management raised its full-year sales, earnings, and cash-flow outlook.

Quick answer

RTX's Q2 2026 earnings showed strong commercial-aerospace and defense demand across the portfolio. Organic sales rose 16%, backlog reached $289 billion, and management raised adjusted EPS guidance to $7.10 to $7.25. The main risks are execution on the GTF engine inspection program, supply-chain capacity, and the conversion of backlog into cash.

What drove RTX's growth?

Collins Aerospace sales increased 8%, Pratt & Whitney grew 16%, and Raytheon grew 18%. That breadth matters because it reduces dependence on a single aircraft program, customer, or defense category.

Total sales were $24.7 billion. GAAP earnings per share were $1.57, while adjusted EPS was $1.89, up 21%. The difference between the two measures reflects exclusions that investors should review rather than automatically ignore.

Cash from operations was $3.5 billion, and free cash flow reached $2.9 billion. Strong cash conversion gives RTX more flexibility to fund remediation, investment, debt reduction, dividends, and repurchases.

What does RTX's $289 billion backlog mean?

Backlog included approximately $170 billion of commercial work and $119 billion of defense work. Management said the total was 22% higher than a year earlier.

Commercial backlog benefits from aircraft production and aftermarket demand, while defense backlog reflects replenishment and modernization spending. The mix creates long-duration visibility, but timing can shift with supplier constraints, aircraft build rates, government appropriations, and customer schedules.

How much did RTX raise guidance?

RTX now expects 2026 adjusted sales of $95 billion to $96 billion, up from $92.5 billion to $93.5 billion. Expected organic growth increased to 8% to 9% from 5% to 6%.

Adjusted EPS guidance rose to $7.10 to $7.25 from $6.70 to $6.90, and the free-cash-flow outlook increased to $8.5 billion to $8.75 billion.

The higher ranges indicate that management sees the Q2 strength extending beyond a single quarter. Guidance is still an estimate and depends on execution, mix, and macroeconomic assumptions.

What should RTX investors watch next?

  • GTF inspection, compensation, and fleet-management costs remain a central cash risk.
  • Backlog should convert without excessive working-capital use.
  • Commercial aftermarket growth should support margins as original-equipment volumes rise.
  • Defense program margins should improve alongside volume.
  • GAAP results should gradually converge with adjusted performance.

Bottom line

RTX's Q2 2026 earnings combined growth, backlog, cash flow, and a guidance raise. The strength was spread across Collins, Pratt & Whitney, and Raytheon, making the quarter more durable than a one-segment surge.

The operational challenge is now delivery. RTX must turn record demand into engines, components, defense systems, and aftermarket service while managing GTF obligations and a constrained aerospace supply chain.

This article is for informational purposes only and is not investment advice. Financial figures are based on company reports available July 24, 2026.

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