RTX Boosts 2026 Forecast on Surging Aerospace and Defense Demand

RTX Corp. raised its full-year 2026 sales and profit guidance on Thursday, citing robust demand for both commercial aircraft services and military hardware as global conflicts and airline fleet constraints drive business. The upgraded outlook, which surpassed analyst expectations, sent company shares up 6% in premarket trading.

Upgraded Outlook and Q2 Beat

The Arlington, Virginia-based company announced a stronger-than-expected performance in its second quarter, providing the foundation for its improved full-year forecast. RTX reported quarterly adjusted profit of $1.89 per share on revenue of $24.71 billion, beating Wall Street consensus estimates of $1.66 per share and $22.9 billion in revenue, according to LSEG data.

Based on this momentum, RTX lifted its 2026 financial targets:

• Adjusted Sales: Now forecast to be in the range of $95 billion to $96 billion, up from a prior range of $92.5 billion to $93.5 billion.
• Adjusted Profit: Now expected between $7.10 and $7.25 per share, an increase from the previous outlook of $6.70 to $6.90.

Dual Growth Engines

Ad

RTX's optimism is fueled by strength across its major divisions. The Pratt & Whitney unit, which manufactures commercial and military jet engines, saw sales climb 16% to $8.89 billion in the second quarter. The company noted that persistent shortages of new aircraft are forcing airlines to operate older jets for longer, boosting demand for its maintenance, repair, and overhaul (MRO) services.

Simultaneously, the Raytheon defense business is benefiting from increased government spending as nations replenish weapons stockpiles depleted by conflicts in Ukraine and the Middle East. Sales in this segment grew 18% to $8.27 billion, driven by demand for air and missile defense systems. "About half of (Raytheon’s) bookings in the first half of the year, $10 billion came from international customers," RTX Chief Financial Officer Neil Mitchill said in a call with Reuters, adding that $7 billion of that came from Europe.

Record Backlog Signals Future Growth

Underscoring future revenue visibility, RTX reported its total backlog grew 22% from the prior year to a record $289 billion. This figure comprises $170 billion in commercial aerospace orders and $119 billion in defense contracts.

The sustained demand reflects a favorable environment for the defense industry, supported by proposals like the record $1.5 trillion U.S. military budget for fiscal 2027. This broad-based strength in both its key markets provides a solid foundation for the company's newly raised financial targets.