RTX Corporation (NYSE: RTX) just handed investors one of the most convincing earnings beats in the defense and aerospace sector this year — and then raised its full-year guidance on top of it. The company now projects 2026 adjusted sales of $95 billion to $96 billion, up from its prior forecast of $92.5 billion to $93.5 billion, and lifted its full-year adjusted EPS guidance to $7.10-$7.25, significantly above Wall Street’s $6.92 consensus estimate. The stock is a textbook example of a company firing on multiple cylinders at once.
The Q2 numbers were equally impressive. Revenue hit $24.7 billion, up 14% year-over-year, while adjusted EPS came in at $1.89 — a 21% jump from the same period in 2025. The Pratt & Whitney engine unit posted a 16% sales increase to $8.89 billion, driven by demand for its Airbus-compatible engines and the F-35 program. Raytheon’s defense business grew sales 18%, fueled by sustained orders for Patriot missiles, AMRAAM systems, and air defense hardware as governments from Europe to Asia race to restock weapons inventories. Collins Aerospace, the aviation systems segment, added an 8% revenue gain. Backlog — the most forward-looking indicator for a defense company — expanded 22% year-over-year to a record $289 billion, split between $170 billion in commercial aerospace and $119 billion in defense contracts. Operating cash flow was $3.5 billion, free cash flow $2.9 billion.
For investors, RTX is a rare dual-engine growth story: it benefits simultaneously from the commercial aviation MRO (maintenance, repair, and overhaul) boom and the global defense spending surge. Airline fleets are aging because Boeing and Airbus cannot deliver new planes fast enough, so carriers keep paying Pratt & Whitney to maintain older jets — a trend that shows no sign of reversing. On the defense side, the Russia-Ukraine war and Middle East conflicts are driving demand for the exact missile and air defense systems RTX makes. With a $289 billion backlog and guidance well above Street estimates, RTX offers investors solid revenue visibility for years ahead. The stock trades at a reasonable multiple for the growth it is delivering, and analysts tracking the defense sector view RTX’s raised outlook as a signal of structural tailwinds, not a one-quarter event. Investors looking for a defensive-growth name that can weather both geopolitical uncertainty and airline cycle softness should have RTX on their watchlist.
