Abstract
RTX Corp will report fiscal second-quarter 2026 results on July 23, 2026 Pre-MKt; consensus points to year-over-year growth in revenue and adjusted EPS with continued momentum across Pratt & Whitney and defense programs.
Market Forecast
For the current quarter, market consensus anticipates revenue of 22.88 billion US dollars, EBIT of 2.99 billion US dollars, and adjusted EPS of 1.66, implying year-over-year growth of 10.93%, 16.42%, and 15.02%, respectively; revenue growth compares with the prior-year pace and suggests steady mix improvement. Forecast commentary indicates a focus on disciplined cost control supporting an EBIT margin uptick and mid- to high-single-digit adjusted EPS expansion year over year.
RTX Corp’s previous report highlighted Pratt & Whitney, Collins Aerospace, and Raytheon defense programs as the engines of growth; management outlook centers on narrowbody aftermarket demand and backlog conversion in defense. The most promising segment is Pratt & Whitney, with last quarter revenue of 8.17 billion US dollars and continued double-digit aftermarket growth year over year.
Last Quarter Review
In the prior quarter, RTX Corp delivered revenue of 22.08 billion US dollars, a gross profit margin of 20.81%, GAAP net profit attributable to shareholders of 2.06 billion US dollars, a net profit margin of 9.33%, and adjusted EPS of 1.78, with year-over-year growth of 8.72% in revenue and 21.09% in adjusted EPS. Quarter-on-quarter net profit growth was 26.94%, underscoring solid operational leverage.
A notable highlight was the broad-based beat versus internal forecasts across revenue and profitability, reflecting stronger aftermarket and defense execution. By segment, Pratt & Whitney contributed 8.17 billion US dollars, Collins Aerospace 7.60 billion US dollars, and Raytheon defense programs 6.95 billion US dollars, with segment dynamics driven by commercial aftermarket strength and steady defense deliveries year over year.
Current Quarter Outlook (with major analytical insights)
Core commercial and defense portfolio
RTX Corp’s core business spans commercial aerospace exposure through Pratt & Whitney and Collins Aerospace and a significant defense footprint under Raytheon. For the current quarter, consensus revenue of 22.88 billion US dollars implies sequential growth consistent with seasonal patterns and mid- to high-single-digit mix improvements from aftermarket and program ramp-ups. Margin trajectory is expected to benefit from pricing and productivity actions, with EBIT of 2.99 billion US dollars signaling operational efficiency gains relative to last year. A key swing factor is execution on defense program milestones and the pace of converting backlog into shipments, which can influence both top-line timing and cost absorption. On the commercial side, continuing aircraft utilization should sustain aftermarket demand, though shop visit timing may introduce intra-quarter variability.
Most promising growth engine: Pratt & Whitney
Pratt & Whitney remains the standout growth engine, supported by strong shop visits and materials demand that raise revenue visibility. The prior quarter’s 8.17 billion US dollars establishes a high base, and current-quarter expectations lean on continued double-digit aftermarket expansion and progress in addressing in-service engine fleet maintenance schedules. Gross margin improvement is likely as high-margin services outpace original equipment sales and as productivity initiatives temper inflationary pressures. Potential constraints include supply chain lead times for critical components and the cadence of engine removals and returns, which can shift revenue recognition between quarters. Nevertheless, the aftermarket-driven mix provides a buffer to short-term new engine delivery fluctuations and helps underpin adjusted EPS expectations.
Key stock-price drivers this quarter
The primary catalysts for the share price revolve around adjusted EPS execution versus the 1.66 benchmark, segment-level margin disclosure, and updated full-year guidance. Any upside surprise on EBIT margin tied to productivity gains or aftermarket mix should be positively received, while evidence of defense milestone adherence would reduce risk premia embedded in expectations. Investors will watch commentary on supply chain normalization and parts availability, as this directly affects shop visit throughput for Pratt & Whitney and throughput for Collins Aerospace. Capital allocation signals, including the cadence of buybacks and any updates on cash conversion relative to EBIT, will also shape sentiment, particularly given the company’s improving earnings power and cash generation profile.
Analyst Opinions
Across recent institutional commentary, the majority view is bullish, emphasizing sustained aftermarket strength and improving defense execution into the second half. Well-followed analysts highlight that consensus revenue growth of 10.93% and adjusted EPS growth of 15.02% are achievable given prior-quarter momentum and cost efficiencies underpinning EBIT of 2.99 billion US dollars. The bullish camp underscores Pratt & Whitney’s aftermarket as a durable driver of margin expansion, while Collins Aerospace is viewed as benefiting from steady aircraft utilization and retrofit demand. On defense, the tone leans constructive on backlog conversion and program stability, framing risk as manageable and execution-dependent. Overall, the prevailing opinion anticipates modest upside to the 1.66 adjusted EPS marker if aftermarket volumes and pricing hold and if defense timing remains on track.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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