RTX beats Q3 earnings expectations, lifts guidance amid robust demand

By Reuters News


Overview

  • US aerospace and defense firm's Q3 adjusted revenue rose 11%, beating analysts' expectations

  • Adjusted EPS for Q3 grew 33%, beating analyst expectations

  • Company raised 2026 outlook for adjusted sales, adjusted EPS, and free cash flow


Outlook

  • RTX raises 2026 adjusted sales outlook to $97.0-$97.5 bln from $95.0-$96.0 bln

  • Company now expects 2026 adjusted EPS of $7.65-$7.75, up from $7.10-$7.25

  • RTX sees 2026 free cash flow at $9.0-$9.2 bln, up from $8.50-$8.75 bln


Result Drivers

  • COMMERCIAL AEROSPACE DEMAND - RTX said double-digit organic sales growth was driven by higher volume in commercial original equipment and aftermarket, especially narrowbody and widebody platforms, as well as growth in modifications, upgrades, and parts and repair

  • DEFENSE PROGRAMS - Higher volume across multiple defense programs, including naval, land, and air defense systems such as Patriot, Standard Missile, and Tomahawk, contributed to sales growth

  • IEEPA RECOVERY - Adjusted EPS and segment operating profit benefited from IEEPA cost recovery, including $0.25 in adjusted EPS and $0.4 bln in segment profit


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$24.97 bln

Q3 Adjusted Revenue

Beat

$25 bln

$24.08 bln (17 Analysts)

Q3 Adjusted EPS

Beat

$2.26

$1.78 (19 Analysts)

Q3 EPS

$1.89


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for RTX Corporation is $227.50, about 18.4% above its October 19 closing price of $192.11

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 20 - Northrop Grumman Q3 revenue slightly misses; lifts 2026 profit guidance on strong demand

  • Oct 20 - GE Aerospace Q3 adjusted revenue beats on strong demand; lifts 2026 outlook

  • Oct 19 - Ukraine's Zelenskiy discusses speeding up supplies of Patriots with Lockheed Martin


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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