RTX Corporation Reaffirms 2026 Financial Guidance Amid Huge Backlog

RTX Corporation reaffirmed its full-year 2026 financial targets at the Baird 2026 Global Industrial Conference, highlighting steady execution against its massive USD 340 billion order backlog. Investing.com reported that Chief Financial Officer Neil Mitchill maintained full-year expectations for revenue of USD 97.0 billion to USD 97.5 billion, adjusted earnings of USD 7.65 to USD 7.75 per share, and free cash flow between USD 9.0 billion and USD 9.2 billion. Full-year organic sales growth remains projected at 10% to 11%.

Looking toward 2027, company executives anticipate higher sales, operating profits, and free cash flow across Pratt & Whitney, Collins Aerospace, and Raytheon. Operating margins are also projected to expand across all three segments, although formal guidance for 2027 will not be issued until the January earnings release. Several non-recurring items will affect 2027 comparisons, including the loss of a USD 0.25 per-share IEEPA benefit and a pension headwind between USD 0.30 and USD 0.35 per share. However, cash flow should receive support from an estimated USD 500 million reduction in powder-metal payments.

Raytheon heads into 2027 with more than 80% of projected annual sales already in its backlog, with at least 85% of that funded. Four binding framework agreements covering the Tomahawk, AMRAAM, SM-6, and SM-3 munitions programs have developed into approximately USD 70 billion in contracts, providing about 10 years of demand visibility. In addition, Raytheon booked USD 9 billion in international awards during the third quarter. Outside the munitions agreements, 52% of Raytheon's backlog is international.

Commercial aerospace operations also continue to show solid momentum. Pratt & Whitney's Geared Turbofan shop visits are sold out through 2027, and its V2500 engine program is expected to generate around 800 shop visits in both 2026 and 2027. Collins Aerospace continues to benefit from extended maintenance commitments, including a Boeing 787 nacelle service agreement with Air Europa running through 2037.

For the third quarter ended September 30, RTX reported revenue of $24.97 billion, an increase of 11.1% from $22.48 billion in the prior-year period. Net income reached $2.58 billion, or $1.89 in diluted earnings per share. In the market, RTX closed at $201.29 on Wednesday, November 11. Meanwhile, Zacks Investment Research gives the stock a Zacks Rank #1 (Strong Buy), citing upward revisions to consensus earnings estimates.