RTX Reports Q3 Sales Growth of 11%, Raises Full-Year Outlook

RTX Corporation reported third quarter 2026 sales of $25.0 billion, an 11% increase compared to the same period last year, signaling continued momentum in the defense and aerospace sectors. The company also raised its full-year 2026 adjusted sales outlook to a range of $97.0 to $97.5 billion, up from a prior forecast of $95.0 to $96.0 billion.

Driven by a 12% organic increase, RTX’s Q3 performance underscores the strength of demand within its core markets. The results included a GAAP earnings per share (EPS) of $1.89, incorporating acquisition accounting adjustments and restructuring costs. More significantly, adjusted EPS reached $2.26, a substantial 33% increase year-over-year, boosted by $0.25 from IEEPA (International Emergency Economic Powers Act) cost recovery. This adjusted EPS metric excludes certain significant items, providing a clearer picture of underlying operational profitability.

RTX generated operating cash flow of $2.9 billion in the quarter, with free cash flow reaching $2.1 billion, including approximately $0.3 billion from IEEPA recovery. The company’s ability to convert sales into cash remains a key strength, supporting investments in growth and potential capital returns. The increase in free cash flow, despite ongoing investments, suggests robust underlying financial health.

These results come amid a broader environment of geopolitical tensions and modernization efforts driving demand for defense products, as well as a generally positive economic outlook supporting industrial growth. The company's revised outlook reflects confidence in its ability to navigate these conditions and capitalize on emerging opportunities. RTX’s Q3 performance, characterized by double-digit sales growth and a significant increase in adjusted EPS, positions the company favorably within the aerospace and defense industry.