Following a similar pattern RTX's 2Q2026 results, like its peer Lockheed Martin, beat market expectations. Geopolitical uncertainties raise demand, while international orderbook build up is a tailwind. Engines/products issue are reported to be turning for better. Full-year outlook is raised.
Will RTX's order backlog increase again in 3Q2026?
TL;DR:
Revenue and adjusted EPS both cleared the Street decisively. Adjusted EPS of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%, and revenues rose 14.5% year over year to $24.71 billion, beating the consensus mark of $22.83 billion by 8.2%.
Backlog hit a fresh record on broad-based order strength. Backlog surged 22% year-over-year to a record $289 billion, driven by sustained defense spending amid global conflicts and strong commercial demand, with $43 billion of new awards in Q2 alone, nearly $20 billion of that at Raytheon.
The GTF/powder-metal fleet issue is measurably improving, not just stabilizing. Aircraft-on-ground levels were down 25% year-to-date due to a 40% increase in MRO output, and the number of engines requiring open inspection came in faster and better than sell-side analysts had modeled — a genuine operational beat on the single biggest overhang for the stock over the past two years.
Defense bookings were exceptionally strong internationally. Raytheon's performance was bolstered by over $10 billion in international awards during the first half, and Raytheon this month announced a collaboration with multiple NATO nations to identify additional European suppliers for AMRAAM components to accelerate deliveries.
Guidance was raised on every metric, not just reaffirmed. Adjusted full-year sales guidance lifted to $95.0–96.0 billion, EPS to $7.10–7.25, and free cash flow to $8.50–8.75 billion — the EPS guide increase of $0.40 at the midpoint is large enough to signal real conviction in H2, not just conservatism being relaxed.
Key Debates:
Is the GTF/powder-metal saga actually resolved, or just past its worst quarter?
Is deleveraging or shareholder return the near-term capital priority?
How much of the defense growth is booked backlog versus not-yet-recognized framework demand?
Check out our post of RTX's peer - Lockheed Martin results review:
YU GU
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