AI Takeaway
RTX delivered strong Q2 FY2026 growth, with revenue up 14.5% to $24.7B, operating income up 31.0% to $2.8B, and diluted EPS up 28.7% to $1.57, supported by higher sales and profit across all three segments. Source: 10-Q Item 2 MD&A, pp.35-39.
Revenue
$24.71B
++14.49% YoY
EPS (Basic)
$1.58
++27.42% YoY
Operating Income
$2.81B
++30.99% YoY
Filed · Source: SEC EDGAR 10-Q filing
Rtx (RTX) reported Q2 FY2026 revenue of $24.71B, up 14.5% year over year. The company posted net income of $2.14B, up 29.1% from a year earlier, with diluted EPS of $1.57.
Quarterly net sales increased $3.1B year over year to $24.7B; organic sales increased $3.5B, led by approximately $1.3B each at Pratt & Whitney and Raytheon and $1.0B at Collins Aerospace. Reported sales growth was partly offset by a $0.4B reduction from 2025 Collins divestitures.
Source: Source: 10-Q Item 2 MD&A, p.35.
Operating profit increased $665M to $2.8B and operating margin expanded to 11.4% from 9.9%. Management attributed the increase primarily to approximately $0.5B of higher organic segment operating profit and the absence of a Pratt & Whitney customer-bankruptcy charge recorded in 2025.
Source: Source: 10-Q Item 2 MD&A, pp.37-38.
Pratt & Whitney quarterly segment operating profit increased to $738M from $492M, while sales rose to $8.9B from $7.6B. Collins operating profit increased to $1.3B from $1.2B, and Raytheon operating profit increased to $1.0B from $805M.
Source: Source: 10-Q Item 2 MD&A, p.39.
Commercial aerospace and other commercial sales were $11.7B, or 47.2% of quarterly sales, while U.S. government sales were $9.3B, or 37.6%. Foreign military sales through the U.S. government and foreign-government direct commercial sales accounted for a further 15.2% combined.
Source: Source: 10-Q Item 2 MD&A, p.35.
RTX stated that it had paid approximately $0.5B of tariffs previously imposed under IEEPA, submitted refund claims, and recognized only an immaterial amount of refunds as of June 30, 2026. The company expects to recognize additional refunds only if approved and continues to assess the effects of new and revised tariff regimes.
Source: Source: 10-Q Item 2 MD&A, pp.31-32.
RTX reported current assets of $63.9B and current liabilities of $63.2B, producing a current ratio of 1.01x. This indicates only a narrow excess of short-term assets over short-term obligations, so working-capital swings could reduce financial flexibility.
Source: Source: 10-Q Balance Sheet (XBRL).
Debt-to-equity was 1.59x at Q2 FY2026, indicating that debt is substantial relative to stockholders' equity. Higher leverage can increase sensitivity to interest costs and refinancing conditions, although the filing reports lower net interest expense year over year.
Source: Source: 10-Q Balance Sheet and Income Statement (XBRL).
For the six months ended Q2 FY2026, investing cash flow was an outflow of $1.6B and financing cash flow was an outflow of $2.9B. Operating cash flow of $5.4B covered these outflows in the period, but ongoing investment and financing requirements can affect cash balances and capital-allocation flexibility.
Source: Source: 10-Q Statement of Cash Flows (XBRL).
Reported EPS of $1.89 versus the $1.68 analyst consensus — a +12.6% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24.71B | $21.58B | +14.49% |
Operating Income | $2.81B | $2.15B | +30.99% |
Net Income | $2.14B | $1.66B | +29.09% |
EPS (Basic) | $1.58 | $1.24 | +27.42% |
EPS (Diluted) | $1.57 | $1.22 | +28.69% |
R&D Expense | $726M | $697M | +4.16% |
SG&A Expense | $1.66B | $1.57B | +5.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $173.97B | $167.14B | +4.09% |
Current Assets | $63.91B | $54.66B | +16.93% |
Total Liabilities | $105.83B | $102.89B | +2.85% |
Current Liabilities | $63.24B | $54.33B | +16.40% |
Stockholders' Equity | $66.38B | $62.4B | +6.38% |
Cash & Equivalents | $8.3B | $4.78B | +73.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $5.4B | $1.76B | +206.41% |
Investing Cash FlowYTD | $-1.55B | $-1.19B | -30.75% |
Financing Cash FlowYTD | $-2.91B | $-1.41B | -106.46% |
Share BuybacksYTD | $0 | $50M | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 11.4% | 9.9% | +1.43% |
Net Margin | 8.7% | — | — |
ROE | 3.2% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $1.011 | — | — |
Debt to Equity | $1.594 | — | — |
Expected release date, analyst estimates & what to watch
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.
RTX delivered strong FY2025 results with revenue rising 9.7% to $88.6B and operating income surging 42.2% to $9.3B, driven by robust demand across its defense and commercial aerospace segments.
Other companies in Aerospace & Defense
RTX revenue increased 14.5% year over year to $24.7B in Q2 FY2026. Management reported $3.5B of organic growth, led by approximately $1.3B each from Pratt & Whitney and Raytheon and $1.0B from Collins Aerospace. Source: 10-Q Item 2 MD&A, p.35.
Operating income increased 31.0% to $2.8B and diluted EPS increased 28.7% to $1.57. RTX attributed the operating-profit gain primarily to roughly $0.5B of higher organic segment profit and the absence of a prior-year customer-bankruptcy charge at Pratt & Whitney. Source: 10-Q Item 2 MD&A, pp.38-39.
The supplied filing data do not include Wall Street consensus estimates, so whether RTX beat or missed estimates cannot be determined from this 10-Q. Reported diluted EPS was $1.57, versus $1.22 in the prior-year quarter. Source: 10-Q Item 2 MD&A, p.39.
Pratt & Whitney generated $8.9B of segment sales, Raytheon generated $8.3B, and Collins Aerospace generated $8.2B. Raytheon had the highest segment operating profit at $1.0B, followed by Collins at $1.3B and Pratt & Whitney at $738M; segment amounts include intercompany activity. Source: 10-Q Item 2 MD&A, p.39.
RTX ended Q2 FY2026 with $8.3B of cash and equivalents and generated $5.4B of operating cash flow during the first six months of the fiscal year. However, its current ratio was 1.01x and debt-to-equity was 1.59x, indicating limited short-term liquidity cushion and meaningful leverage. Source: 10-Q Balance Sheet and Statement of Cash Flows (XBRL).