Updated: RTX raises its 2026 performance forecast, aviation and defense sector demand drive order backlog to a historic high

Updated the stock price movement in paragraph 2, added tariff rebate content in paragraphs 4 and 12, and supplemented with a chart about backlogged orders.

Mike Stone/Aatreyee Dasgupta

Reuters, October 20 - RTX Corporation (RTX.N) raised its full-year profit and revenue forecasts on Tuesday, as continued demand for commercial aviation services and military projects drove its total backlog to a record $340 billion and boosted third-quarter performance.

The stock price of the parent company of Pratt & Whitney and Raytheon rose 2% in early trading.

The company now expects adjusted earnings per share in 2026 to be in the range of $7.65 to $7.75, up from its previous forecast of $7.10 to $7.25.

The new midpoint forecast of $7.70 per share includes 25 cents from recovery of tariff rebates under the International Emergency Economic Powers Act (IEEPA).

The company also raised its sales forecast range from $95-96 billion to $97-97.5 billion.

“Demand for our products remains strong, with new commercial and defense contracts totaling over $81 billion, bringing our backlog to a record $340 billion,” CEO Chris Calio said in a statement.

https://www.reuters.com/graphics/RTX-RESULTS/gdpzgjgxgvw/chart.png

This further extends the strong momentum among major US aerospace and defense contractors, backed by robust maintenance spending from airlines, growing demand for aircraft engines and parts, and continued military expenditures amid rising geopolitical tensions.

Collins Aerospace saw quarterly revenue grow 10%, driven by a 23% jump in commercial original equipment sales; Pratt & Whitney’s revenue also rose 10%, benefiting from a 21% increase in commercial aftermarket sales.

Raytheon’s sales grew 14%, mainly due to naval projects and increased volumes of land-based and air defense systems, including Patriot, Standard, and Tomahawk missiles.

According to data compiled by London Stock Exchange Group (LSEG), RTX’s adjusted earnings per share for the quarter were $2.26, above the analyst consensus of $1.78.

For the quarter ended September 30, sales grew 11% to $24.97 billion, with market expectations at $24.08 billion.

On the earnings call, RTX executives said the company received about $300 million in IEEPA tariff rebates in the third quarter and expects to receive another $50 million in the fourth quarter.

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