RTX (NYSE:RTX) shares surged nearly 6% in premarket trading on Thursday after the aerospace and defence company reported second-quarter earnings and revenue ahead of Wall Street expectations while increasing its financial guidance for the full year.
The stronger outlook reflected robust demand across both its commercial aerospace and defence businesses, supported by a record order backlog.
Second-quarter results exceed expectations
RTX reported second-quarter earnings of $1.89 per share, comfortably above analysts’ consensus estimate of $1.66.
Revenue reached $24.7 billion during the quarter, exceeding market expectations of $22.88 billion and representing 16% organic growth from a year earlier.
The stronger financial performance prompted investors to push the company’s shares higher in premarket trading.
Company upgrades full-year guidance
RTX increased its fiscal 2026 earnings guidance to between $7.10 and $7.25 per share, compared with its previous forecast of $6.70 to $6.90.
The revised midpoint also exceeds Wall Street’s consensus estimate of $6.92 per share.
The company raised its full-year revenue outlook to between $95 billion and $96 billion, up from its previous range of $92.5 billion to $93.5 billion and ahead of analysts’ expectations of $94.1 billion.
RTX also increased its forecast for organic sales growth to between 8% and 9%, compared with its earlier expectation of 5% to 6%.
In addition, the company lifted its free cash flow guidance to between $8.50 billion and $8.75 billion, compared with the previous range of $8.25 billion to $8.75 billion.
Record backlog supports long-term growth
Chairman and Chief Executive Officer Chris Calio said, “RTX is exceptionally well positioned to drive continued growth as we execute on our backlog, increase productivity, expand capacity, and introduce new technologies to our customers.”
During the second quarter, RTX’s order backlog increased 22% to a record $289 billion.
The backlog included $170 billion in commercial aerospace orders and $119 billion related to defence programmes, highlighting continued demand across both of the company’s core markets.
Strong cash generation continues
RTX generated operating cash flow of $3.5 billion during the quarter, while free cash flow reached $2.9 billion.
The combination of stronger earnings, higher guidance and a record backlog reinforced investor confidence in the company’s growth prospects.
RTX Corp stock price
