RTX Corp (NYSE:RTX, XETRA:5UR) shares rose about 8% in early trading Thursday after the aerospace and defense company reported better-than-expected second quarter results and raised its full-year 2026 outlook.
The company reported adjusted earnings per share of $1.89 on revenue of $24.7 billion for the quarter, ahead of analyst expectations for adjusted EPS of $1.66 on revenue of $22.88 billion, according to consensus estimates.
Adjusted EPS increased 21% from the prior-year period, while sales rose 14% year over year and 16% organically.
Following the strong quarter, RTX raised its full-year 2026 adjusted earnings outlook to a range of $7.10 to $7.25 per share, up from its previous forecast of $6.70 to $6.90 per share.
The company also increased its adjusted sales guidance to $95 billion to $96 billion, compared with its prior outlook of $92.5 billion to $93.5 billion, and raised its organic sales growth forecast to 8% to 9% from 5% to 6%.
The company now expects full-year free cash flow of $8.50 billion to $8.75 billion, compared with its previous guidance of $8.25 billion to $8.75 billion.
RTX reported second quarter operating cash flow of $3.5 billion and free cash flow of $2.9 billion.
The company’s backlog reached $289 billion at the end of the quarter, including $170 billion in commercial orders and $119 billion in defense.
“RTX delivered very strong second quarter results with 16% organic sales growth, including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow,” RTX CEO Chris Calio said in a statement.
“Demand remains robust, and our backlog is up 22% year over year.”
Calio added that the company was raising its full-year outlook based on its first-half performance and backlog, highlighting its focus on executing its order book, expanding capacity and introducing new technologies.
The company also announced an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million.