RTX Corporation (RTX) shares rose 0.28% to $192.65 after the aerospace and defense company delivered stronger third-quarter earnings. Adjusted earnings grew 33%, while revenue reached $25 billion across the company's commercial aerospace and defense operations. RTX also raised its full-year outlook as its order backlog reached a record $340 billion.

Stock Recovers as Third-Quarter Profit Rises

The stock gained $0.54, as late buying erased earlier session losses. Shares moved sharply during the session but finished higher following the quarterly report. The advance coincided with improved profit and demand across RTX's commercial aerospace and defense businesses.

According to the company's quarterly results, RTX reported net income of $2.58 billion, up 35% from $1.92 billion a year earlier. GAAP earnings per share rose 34% to $1.89 from $1.41, and adjusted earnings per share climbed to $2.26 from $1.70.

Adjusted net income reached $3.09 billion, a 34% annual increase from $2.31 billion in 2025. RTX's adjusted earnings included $0.25 per share from cost recovery tied to the International Emergency Economic Powers Act (IEEPA), a U.S. law that has been used to impose import tariffs. Higher taxes and lower pension income partly offset operating gains.

Revenue Climbs as Backlog Reaches $340 Billion

RTX generated $24.97 billion in sales during the quarter, compared with $22.48 billion a year earlier. Revenue increased 11% on a reported basis and 12% organically. Commercial aviation and defense demand supported the growth, while new awards exceeded $81 billion during the latest reporting period.

Those contracts pushed RTX's total backlog to a record $340 billion. Backlog measures orders already booked for future delivery, and a record level of this kind provides visibility into revenue well beyond the current quarter. Commercial aerospace orders totaled $176 billion, while defense orders reached $164 billion, leaving the company's book of business nearly evenly split between commercial and military demand. RTX also secured multi-year production contracts for Tomahawk and AMRAAM missiles during the third quarter of 2026.

Alongside the results, RTX raised its 2026 adjusted sales forecast to a range of $97.0 billion to $97.5 billion, up from its prior outlook of $95.0 billion to $96.0 billion. The company increased its adjusted earnings guidance to $7.65 to $7.75 per share, lifted organic growth expectations to 10%–11%, and raised its annual free cash flow target to $9.0 billion to $9.2 billion. Progress against those higher targets, along with the pace at which the record backlog converts into deliveries, will be figures to track in upcoming quarterly updates.

Collins, Pratt & Whitney, and Raytheon Drive Results

RTX's three main business segments — Collins Aerospace, Pratt & Whitney, and Raytheon — each posted sales growth during the quarter.

Collins Aerospace reported $8.38 billion in sales, up 10% from a year earlier. Adjusted operating profit jumped 50% to $1.79 billion as commercial aircraft activity strengthened. Original equipment sales, which cover components supplied for new aircraft production, increased 23%, while commercial aftermarket revenue — parts and services for aircraft already in service — advanced 9% from the comparable prior-year quarter.

Pratt & Whitney posted $9.23 billion in sales, representing 10% growth. Adjusted operating profit rose 29% to $968 million, supported by stronger demand for commercial engine aftermarket services. However, a $363 million charge related to a customer bankruptcy contributed to a 19% drop in the segment's reported operating profit, showing how a single customer's failure can weigh on results even as segment sales grow.

Raytheon recorded $8.03 billion in sales, up 14%, amid rising orders for missiles and air defense systems. Adjusted operating profit climbed 32% to $1.13 billion, aided by productivity improvements.

Free Cash Flow Declines Despite Higher Earnings

Despite the earnings growth, RTX's quarterly free cash flow fell 47% to $2.12 billion, down from $4.03 billion a year earlier. Free cash flow, which measures cash generated after capital expenditures, is the basis for the company's raised annual, and cash generation over the remainder of the year will determine whether that goal is met.