RTX beats Q3 estimates and raises 2026 guidance on record $340B backlog; shares rise (Oct 20)

What happened

RTX reported Q3 2026 adjusted EPS of $2.26 on $25 billion of sales, well ahead of Wall Street's $1.78 EPS and $24.1 billion sales expectations, up from $1.70 EPS and $22.5 billion of sales a year earlier — a 33% year-over-year EPS gain helped in part by tariff cost recoveries. The company raised its full-year 2026 outlook: sales of about $97.3 billion (up from $95.5 billion guidance, vs $96.3 billion consensus) and EPS of about $7.70 (up from $7.18, vs $7.26 consensus). CEO Chris Calio cited 'robust demand' with more than $81 billion of new commercial and defense awards in the quarter, pushing the backlog to a record $340 billion. Shares were up about 2% to $196 on Tuesday.

Who’s affected

• RTX (direct: beat-and-raise quarter, record backlog, tariff-cost recoveries); defense peers (GE Aerospace, Northrop Grumman, Lockheed Martin, General Dynamics — read-through from strong defense bookings); commercial-aerospace suppliers (demand for new jet parts vs aftermarket margin debate).

Sources

barrons.com