RTX beats Q1 estimates and raises FY outlook despite weak stock reaction

Transcript intelligence

What changed

RTX delivered adjusted EPS of $1.78 versus $1.51 estimated (+17.9% surprise) and revenue of $22.08B versus $21.46B estimated (+2.9%), with adjusted sales up 10% organically. Backlog rose to a record $271B from $268B, and the company raised its full-year adjusted sales outlook by $500M and EPS outlook by $0.10. Despite the beat and raise, shares fell about 3.7% on the session (versus a 0.7% benchmark move) and drifted another roughly 6.8% lower subsequently.

Guidance delta

Raised full-year 2026 adjusted sales outlook by $500M and adjusted EPS outlook by $0.10; guidance sentiment moved from maintained (Q4) to raised (Q1), supported by a record backlog and strong defense awards.

Key takeaways

• Q1 adjusted sales up 10% organically to $22.1B; adjusted EPS up 21% YoY to $1.78; free cash flow of $1.3B
• Record backlog of $271B with book-to-bill of 1.14, signaling sustained order flow
• Full-year adjusted sales outlook raised by $500M and EPS outlook by $0.10
• Defense secured over $12B of new awards plus framework agreements for munitions
• GTF Advantage engine certified, with Hot Section Plus retrofit introduced
• Shares fell ~3.7% on the session despite the beat, with further drift lower since

Management priorities

• Expand capacity at Pratt's Columbus, GA ($200M) and Raytheon's Huntsville, AL ($115M), Tucson and Andover sites
• Deploy robotics and automation from Singapore across other MRO sites
• Commercially launch the GTF Advantage engine and Hot Section Plus retrofit
• Scale hybrid-electric propulsion technology for regional aircraft
• Finalize and execute framework agreements for critical munitions production