Raytheon Technologies Corporation Q3 2026 Earnings Recap

RTX reported 12% organic sales growth and raised its full-year outlook, while the stock was roughly flat, up 0.6% after earnings. The quarter included a sizable contribution to adjusted EPS from IEPA cost recovery, and management flagged continuing work to reduce GTF-related aircraft-on-ground levels.

Key Takeaways

• Adjusted sales were $25 billion, up 12% organically; adjusted EPS was $2.26, up $0.56 year over year, including $0.25 from IEPA cost recovery.
• Free cash flow was $2.1 billion. RTX raised its full-year outlook for adjusted sales, EPS, and free cash flow, though the transcript excerpt does not give updated targets.
• Backlog reached a record $340 billion, up 36% year over year. Raytheon booked nearly $59 billion of awards, with a 4.57x book-to-bill ratio.
• Commercial aftermarket sales grew 16% organically despite slightly lower global RPKs year over year; commercial orders at Collins rose more than 20%.
• Pratt’s PW1100 MRO output increased over 35% year over year in Q3, while AOGs were relatively stable. Management expects AOG reductions in Q4.