RTX (RTX) Stock Surges Over 5% Following Impressive Q2 Earnings Beat

Key Takeaways

• Second quarter adjusted earnings per share reached $1.89, exceeding analyst expectations of $1.66 by $0.23
• Quarterly revenue totaled $24.7 billion, reflecting 16% organic growth and surpassing the $22.88 billion forecast
• Annual EPS projections increased to a range of $7.10–$7.25, revised upward from the previous $6.70–$6.90 estimate
• Full-year revenue outlook elevated to $95–$96 billion; organic revenue expansion now projected at 8–9%
• Order backlog expanded 22% to reach $289 billion, with commercial aerospace accounting for $170 billion

Shares of RTX Corp surged 5.8% during Thursday’s premarket session following the aerospace and defense company’s robust second-quarter performance that exceeded expectations on both the top and bottom lines, coupled with an upward revision to its annual forecast.

RTX Corporation, RTX

By 6:21 a.m. ET, the stock had gained 5.8%.

For the second quarter, RTX delivered adjusted earnings per share of $1.89, handily beating the Street’s $1.66 projection by $0.23. Total revenue reached $24.7 billion, marking a 14.5% year-over-year climb and exceeding the consensus estimate of $22.88 billion by $1.82 billion.

The quarter generated $2.9 billion in free cash flow, while operating cash flow totaled $3.5 billion.

Chief Executive Officer Chris Calio noted the organization is “exceptionally well positioned to drive continued growth” as it executes on its substantial backlog, scales up production capacity, and delivers innovative solutions to its client base.

Annual Projections Elevated

RTX boosted its fiscal 2026 adjusted EPS outlook to a range of $7.10–$7.25, representing an increase from its earlier guidance of $6.70–$6.90, and exceeding the analyst consensus of $6.92.

The company’s revenue forecast was elevated to $95–$96 billion, up from the previous projection of $92.5–$93.5 billion, compared to Wall Street’s expectation of $94.1 billion.

Organic revenue growth expectations were revised upward to 8–9%, a notable increase from the earlier 5–6% forecast.

Free cash flow projections also received a modest bump to $8.50–$8.75 billion, compared to the prior range of $8.25–$8.75 billion.

Order Book Swells to $289 Billion

RTX’s total order backlog increased 22% throughout the quarter to an impressive $289 billion. The composition includes $170 billion from commercial aerospace contracts and $119 billion from defense programs.

This substantial backlog figure provides meaningful visibility into future revenue streams and suggests sustained business momentum well into the future.

From a valuation perspective, RTX is currently trading at a price-to-earnings multiple of 36.56, notably above its historical median of 27.4. According to GuruFocus, the stock appears significantly overvalued based on their GF Value methodology.

Company insiders have divested roughly $43.86 million worth of shares over the trailing twelve months, while no insider purchases have been documented during that timeframe.

The company’s GF Score registers at 84 out of 100, featuring a Growth Rank of 8/10 and a Profitability Rank of 7/10. RTX’s market capitalization currently stands at approximately $262.44 billion.

With a Piotroski F-Score of 8, the company demonstrates solid financial health as it moves through the latter half of 2026.

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