RTX Raises 2026 Forecasts as Backlog Hits $340 Billion

What changed in RTX's 2026 financial outlook?

RTX raised its adjusted earnings forecast from $7.10–$7.25 to $7.65–$7.75 per share and its sales forecast from $95 billion–$96 billion to $97 billion–$97.5 billion. It also increased its free cash flow forecast from $8.5 billion–$8.75 billion to $9 billion–$9.2 billion.

Orbitrum Investor Impact

Why does RTX's $340 billion backlog matter to investors?

The backlog represents contracted business awaiting fulfillment, providing visibility into future sales across commercial aerospace and defense. It is not revenue already earned, and conversion into sales and cash depends on delivery schedules, execution, and contract terms.

Could the results support RTX stock?

Stronger earnings guidance, a record backlog, and higher expected free cash flow support the investment case by indicating sustained demand and potential cash generation. However, the revised earnings midpoint includes a $0.25-per-share benefit from tariff refund recovery, so investors should distinguish that benefit from underlying operating growth.

How strong were RTX's third-quarter results?

Revenue rose 11% year over year to $24.97 billion, while adjusted earnings reached $2.26 per share, above analysts' $1.78 average estimate. RTX also reported $81 billion in new commercial aerospace and defense awards, including business across its Collins Aerospace, Pratt & Whitney, and Raytheon segments.

What should RTX investors watch next?

Investors should monitor whether RTX converts its backlog into revenue and free cash flow while increasing production capacity. The company forecast $9 billion–$9.2 billion in 2026 free cash flow, but execution and the contribution from tariff refunds remain important factors when assessing the quality of earnings.