RTX Lifts 2026 Forecast as Backlog Hits Record $340 Billion

RTX raised its full year profit and sales forecasts on Tuesday after third quarter results beat estimates, powered by demand for aircraft parts and maintenance on one side and missiles and air defense systems on the other.

The maker of Pratt and Whitney engines and Raytheon missile systems reported adjusted profit of $2.26 a share for the quarter ended September 30, well ahead of the $1.78 average estimate compiled by LSEG and up from $1.70 a year earlier. Sales rose 11 percent to $24.97 billion, against estimates of $24.08 billion. Shares rose about 3 percent before the bell.

RTX now expects 2026 adjusted earnings of $7.65 to $7.75 a share, up from its prior forecast of $7.10 to $7.25. It raised its sales range to $97 billion to $97.5 billion, from $95 billion to $96 billion.

A record $340 billion backlog

Chief executive Chris Calio pointed to the order book. "Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," he said, in the company's results reported by Reuters.

All three divisions grew. Collins Aerospace revenue rose 10 percent on a 23 percent jump in commercial original equipment sales. Pratt and Whitney revenue rose 10 percent, helped by a 21 percent rise in commercial aftermarket sales as airlines keep older fleets flying and serviced. Raytheon sales climbed 14 percent, driven by naval programs and land and air defense systems including Patriot, Standard Missile and Tomahawk.

Two engines of demand

The quarter shows how RTX sits on both sides of the current spending cycle. Airlines are paying to maintain and expand fleets, which lifts engine and parts work, while governments are ordering missile defense and naval systems at a pace set by wars in Ukraine and the Middle East.

The raised forecast lands on a heavy earnings morning in the United States, with General Motors and 3M also reporting before the bell and Netflix due after the close.

Why the backlog number matters

A backlog is work a company has been hired to do but has not yet delivered or been paid for in full. At $340 billion, RTX holds years of orders on its books, spread across jet engines, aircraft parts and missile systems. That spread is the point. Reuters noted the result adds to a strong run for major American aerospace and defence contractors, backed by heavy airline spending on maintenance, growing demand for engines and parts, and steady military spending at a time of high tension around the world.

The two sides of the business also balance each other. When airlines slow their orders for new equipment, older planes still need servicing, and that aftermarket work is steady, high value work for Pratt and Whitney and Collins. When governments speed up missile orders, Raytheon carries the quarter. This time, all three parts fired at once, which is why a profit beat of this size, $2.26 against $1.78 expected, came with a higher forecast for the full year rather than a one off gain.