AI Takeaway
RTX delivered strong Q1 FY2026 results with revenue of $22.1B (+8.7% YoY), net income surging 34.1% to $2.1B, and operating cash flow jumping 42.1% to $1.9B, reflecting broad-based operational improvement across its defense and aerospace segments.
Revenue
$22.08B
++8.72% YoY
EPS (Basic)
$1.53
++33.04% YoY
Operating Income
$2.56B
++25.55% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
RTX grew total revenue by 8.7% YoY to $22.1B in Q1 FY2026, up from $20.3B in the prior-year period, suggesting sustained demand across its defense systems and commercial aerospace businesses.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating income rose 25.6% YoY to $2.6B, outpacing revenue growth and expanding operating margin by approximately 155 basis points to 11.6%, indicating improved cost efficiency and favorable mix shift.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Net income increased 34.1% YoY to $2.1B, with diluted EPS rising 32.5% to $1.51, reflecting both operational improvement and a lower share count from prior buyback activity.
Source: Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockRTX's current ratio stands at approximately 1.02x, meaning current assets barely cover current liabilities of $58.6B. Any unexpected working capital demands or contract delays could pressure short-term liquidity, particularly given the capital-intensive nature of defense and aerospace programs.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
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Upgrade to unlockReported EPS of $1.78 versus the $1.53 analyst consensus — a +16.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $22.08B | $20.31B | +8.72% |
Operating Income | $2.56B | $2.04B | +25.55% |
Net Income | $2.06B | $1.53B | +34.14% |
EPS (Basic) | $1.53 | $1.15 | +33.04% |
EPS (Diluted) | $1.51 | $1.14 | +32.46% |
R&D Expense | $627M | $637M | -1.57% |
SG&A Expense | $1.48B | $1.45B | +1.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $170.43B | $164.86B | +3.38% |
Current Assets | $60.01B | $52.92B | +13.40% |
Total Liabilities | $102.4B | $101.52B | +0.86% |
Current Liabilities | $58.58B | $52.62B | +11.32% |
Stockholders' Equity | $66.28B | $61.52B | +7.74% |
Cash & Equivalents | $6.82B | $5.16B | +32.21% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.85B | $1.3B | +42.15% |
Investing Cash Flow | $-608M | $-678M | +10.32% |
Financing Cash Flow | $-1.84B | $-1.06B | -74.24% |
Share Buybacks | $0 | $50M | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 11.6% | 10.0% | +1.55% |
Net Margin | 9.3% | — | — |
ROE | 3.1% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $1.024 | — | — |
Debt to Equity | $1.545 | — | — |
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Based on the filing data, RTX reported diluted EPS of $1.51 in Q1 FY2026, up 32.5% from $1.14 in the prior-year period, and net income of $2.1B, up 34.1% YoY. Whether this beat Wall Street consensus estimates would require comparison to external analyst forecasts not included in this filing.
RTX grew revenue by 8.7% YoY to $22.1B in Q1 FY2026, compared to $20.3B in Q1 FY2025. This growth was accompanied by even stronger operating income growth of 25.6%, suggesting improving profitability alongside top-line expansion.
The key takeaways from RTX's Q1 FY2026 earnings are strong revenue growth of 8.7% to $22.1B, a 34.1% surge in net income to $2.1B, and a 42.1% jump in operating cash flow to $1.9B. Operating margin also expanded by approximately 155 basis points to 11.6%, reflecting improved cost efficiency.
Based on the financial data, key risks include a tight current ratio of 1.02x that leaves limited short-term liquidity buffer, an elevated debt-to-equity ratio of 1.54x that increases financial leverage risk, and a sharp 74.2% increase in financing cash outflows to -$1.84B. The suspension of share buybacks also signals a potential shift in capital allocation priorities.
RTX's financial health appears solid overall, with $6.8B in cash (up 32.2% YoY), $22.1B in quarterly revenue, and improving profitability metrics. However, the current ratio of 1.02x and debt-to-equity of 1.54x indicate the company carries meaningful leverage and limited near-term liquidity cushion relative to its $58.6B in current liabilities.