RTX announced an upward revision to its 2026 profit and revenue outlook following a first-quarter report that showed rising sales across its defense and commercial aerospace businesses. Management attributed the stronger guidance to ongoing aftermarket activity and increased demand for missile systems and other weapons amid heightened geopolitical tensions.
The company noted that the Pentagon has been working to rebuild its inventory after significant drawdowns. U.S. forces have expended billions of dollars in weaponry - including artillery, ammunition and anti-tank missiles - since Russia's 2022 invasion of Ukraine and during Israel's military operations in Gaza. That replenishment effort has supported demand for major defense contractors.
RTX highlighted a major contract secured in April to supply Patriot GEM-T interceptor missiles to Ukraine, valued at $3.7 billion. Its Raytheon business, which produces air and missile defense systems, sensors, radars and certain space systems, posted first-quarter sales of $6.95 billion, a 10% increase from the prior year.
Commercial aftermarket strength also contributed to the quarter. Pratt & Whitney reported a 19% rise in commercial aftermarket sales as airlines continued to rely on older aircraft and maintenance-heavy fleets due to delivery delays and disruptions in supply chains. The Pratt & Whitney unit has come under scrutiny after allegations by a European planemaker that it over-promised engine shipments while redirecting engines to repair facilities; that planemaker is seeking potential damages in connection with those claims.
Overall, RTX reported first-quarter revenue of $22.08 billion, up 9% from a year earlier. Adjusted earnings per share for the period rose 21% to $1.78.
Following the quarter, RTX raised its full-year adjusted EPS guidance to a range of $6.70 to $6.90, up from a prior outlook of $6.60 to $6.80. The company also nudged up its 2026 revenue forecast to $92.5 billion to $93.5 billion, from a previous range of $92 billion to $93 billion.
Implications for markets and sectors
- Defense sector - RTX's upgraded guidance and large missile contract underscore robust demand tied to government inventory replenishment.
- Aerospace and commercial aviation - Higher aftermarket revenue at Pratt & Whitney reflects pressure on airlines to maintain older fleets amid delivery and supply-chain disruptions.
- Government procurement - Continued Pentagon purchases remain a central driver of revenue for major defense contractors.