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RTX
FY2026 Q1
Raised
RTX Corporation earnings call
Buzzberg read
Munitions deliveries up over 40% year-over-year
RTX reported a strong Q1 with 10% organic sales growth, raised full-year revenue and EPS guidance on defense strength, and affirmed FCF outlook. Management highlighted robust demand across commercial and defense, with notable GTF wins (Finnair) and supply chain progress on powder metal issues. Adjusted sales $22.1B (+10% organic), EPS $1.78 (+21%), FCF $1.3B (+$0.5B YoY).
Buzzberg read Munitions deliveries up over 40% year-over-year RTX reported a strong Q1 with 10% organic sales growth, raised full-year revenue and EPS guidance on defense strength, and affirmed FCF outlook. Management highlighted robust demand across commercial and defense, with notable GTF wins (Finnair) and supply chain progress on powder metal issues. Adjusted sales $22.1B (+10% organic), EPS $1.78 (+21%), FCF $1.3B (+$0.5B YoY). Read full analysisCollapse analysis
RTX reported a strong Q1 with 10% organic sales growth, raised full-year revenue and EPS guidance on defense strength, and affirmed FCF outlook. Management highlighted robust demand across commercial and defense, with notable GTF wins (Finnair) and supply chain progress on powder metal issues. Adjusted sales $22.1B (+10% organic), EPS $1.78 (+21%), FCF $1.3B (+$0.5B YoY).
- Raised FY2026 revenue outlook to $92.5-93.5B and EPS to $6.70-6.90; FCF maintained at $8.25-8.75B.
- Backlog hit a record $271B (+25% YoY) with book-to-bill of 1.14x.
- Defense demand strong: Raytheon munitions output +40% YoY, five framework agreements with DoD for critical munitions.
Revenue$22.076B-9% QoQ
EPS$1.78+15% QoQ
Gross margin20.81%Reported
Operating margin11.57%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Record backlog of $271 billion, up 25% year-over-year
Demand
Framework agreements to boost munitions production over next decade
Show 3 more callouts
Guidance
No change to commercial outlook despite Middle East volatility
Product
GTF Advantage certification received, entry into service later this year
Operations
Grounded engines down 15% from end of last year
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $22.076B | -9% QoQ |
| EPS | $1.78 | +15% QoQ |
| Gross margin | 20.81% | Reported |
| Operating margin | 11.57% | Reported |
| Free cash flow | $1.211B | Reported |
| Capex | $0.644B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $6.70–$6.90 | $6.80 | Raised |
| Free cash flow | FY2026 | $8.25B–$8.75B | $8.5B | Maintained |
| Revenue | FY2026 | $92.5B–$93.5B | $93B | Raised |
AI, capex & demand read
Management read
Confident
Management expressed confidence in strong demand and execution, raising full-year guidance while acknowledging dynamic market conditions.
Investment and capacity
Management highlighted ongoing investments to expand capacity, including a $200 million expansion at Pratt's Columbus, Georgia facility, a $115 million expansion of Raytheon's Redstone Missile Integration Facility, and nearly $900 million in capex over the last three years for munitions capacity, with additional significant investments planned to support framework agreements.
all 5 named companies below
Companiesreturns since call
Customers
Customers
Chris Kellio
Finnair selected the GTF engine for up to 46 Embraer E-2 aircraft, a notable win that underscores customer confidence despite ongoing powder metal durability issues. — The order validates that RTX's engine is competitive in the regional market and provides a direct boost to Embraer's E-Jet E2 backlog.
Evidence
“Finnair announced their intention to purchase up to 46 GTF-powered Embraer E-2 aircraft.”
Partners
Partners
Chris Kellio
Ongoing negotiations with Airbus on GTF delivery levels and allocations reflect the balancing act between OE requirements and fleet health, but the relationship remains constructive.
Evidence
“We will continue to work through our issues as we always do in a constructive and transparent manner.”
Supply chain
Supply chain
Chris Kellio
Pratt & Whitney powered approximately 45% of A320 deliveries in the quarter, exceeding its ~40% program share, indicating share gains versus CFM engines. — This suggests RTX is capturing more than its contractual share on the hotly contested A320 narrowbody platform, pressuring GE and Safran on their CFM product.
Evidence
“Pratt powering about 45% of the A320 deliveries to date ahead of our roughly 40% sold program share.”
External signals
Supply-chain alpha · 2returns since call
Pratt & Whitney powered approximately 45% of A320 deliveries in the quarter, exceeding its ~40% program share, indicating share gains versus CFM engines.
Finnair selected the GTF engine for up to 46 Embraer E-2 aircraft, a notable win that underscores customer confidence despite ongoing powder metal durability issues.
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.