Raytheon Technologies Corporation Q2 2026 Earnings Recap

RTX shares rallied 9.2% following better-than-expected bookings and a raised full-year outlook driven by strong demand across commercial aerospace and defense segments.

Key Takeaways

• Adjusted sales reached $24.7 billion, up 16% organically, with commercial aftermarket and defense both delivering double-digit growth.
• Adjusted EPS grew 21% year-over-year to $1.89, supported by an 18% increase in segment operating profit.
• Backlog hit a record $289 billion, up 22% year-over-year, with a book-to-bill ratio of 2.42 in Q2 driven by nearly $20 billion in Raytheon awards, including significant GEM-T Patriot effectors and classified programs.
• Commercial orders remained strong, highlighted by AirAsia’s 150 A220 aircraft order powered exclusively by GTF engines and a new 5-year MRO deal with Air New Zealand.
• Management raised full-year guidance on sales, EPS, and free cash flow based on sustained demand and operational execution improvements, including expanded manufacturing capacity and digital initiatives.