Stock Markets July 23, 2026 05:59 AM

RTX Raises 2026 Outlook as Maintenance and Defense Orders Strengthen

Backlog climbs 22% to $289 billion amid persistent aircraft MRO demand and higher defense procurement

By Derek Hwang
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RTX elevated its 2026 adjusted sales and profit guidance after reporting stronger sales across its Pratt & Whitney and Raytheon businesses and a 22% year-on-year increase in backlog to $289 billion. The company cited continued demand for maintenance, repair and overhaul services driven by shortages of new commercial aircraft and sustained defense spending to rebuild depleted inventories.

RTX Raises 2026 Outlook as Maintenance and Defense Orders Strengthen
RTX
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Key Points

  • RTX raised 2026 adjusted sales guidance to $95-$96 billion and increased full-year adjusted earnings guidance to $7.10-$7.25 per share.
  • Backlog expanded 22% year-on-year to $289 billion, split between $170 billion in commercial aerospace and $119 billion in defense.
  • Quarterly strength: Pratt & Whitney sales rose 16% to $8.89 billion; Raytheon defense sales grew 18% to $8.27 billion.

RTX said on Thursday it had increased its full-year 2026 revenue and profit guidance, pointing to enduring demand for commercial aircraft maintenance and a pickup in military systems orders. The company reported a 22% jump in its backlog from a year earlier, reaching $289 billion, comprised of $170 billion in commercial aerospace orders and $119 billion in defense work.

Management attributed the robust maintenance, repair and overhaul (MRO) market to persistent shortages of new commercial aircraft. Those shortages, the company said, stem from supply-chain snags and delayed deliveries that have left airlines operating older fleets for longer and relying on higher-cost maintenance solutions.

Pratt & Whitney, RTX’s engine unit that supplies powerplants for Airbus A320neo-family narrowbodies and for Lockheed Martin’s F-35 fighter, recorded a 16% increase in sales to $8.89 billion. The Raytheon defense business posted an 18% rise in sales to $8.27 billion, driven in part by demand for air and missile defense systems such as Patriot, Standard and AMRAAM missiles.

RTX said defense contractors as a group have been supported by elevated global security spending as the Pentagon and allied governments work to replenish inventories that were drawn down by conflicts in Ukraine, the Middle East and other regions. U.S. President Donald Trump has urged defense firms to boost production and expand factory capacity, and has proposed a fiscal 2027 military budget of $1.5 trillion.

Following these developments, RTX lifted its outlook for adjusted 2026 sales to a range of $95 billion to $96 billion, up from a prior forecast of $92.5 billion to $93.5 billion. Analysts on average are looking for $94.08, according to data compiled by LSEG.

The company also raised its forecast for full-year adjusted earnings to $7.10 to $7.25 per share, from a previous range of $6.70 to $6.90. Wall Street consensus had been $6.92 per share. In the second quarter, RTX reported adjusted earnings of $1.89 per share, compared with $1.56 in the year-ago period.


While the company cited clear demand drivers across commercial MRO and defense procurement, its revised guidance and backlog figures underscore the continuing linkage between constrained aircraft deliveries, airline fleet decisions, and the level of aftermarket activity. In defense, the replenishment of inventories and government-driven production directives remain the immediate sources of order growth.

Risks

  • Ongoing supply-chain snags and delayed commercial aircraft deliveries could continue to influence airline reliance on older fleets and MRO demand - impacting commercial aerospace and airline sectors.
  • Defense demand is tied to government procurement and inventory replenishment decisions driven by geopolitical conflicts; changes in those dynamics could alter order patterns - affecting the defense sector and defense contractors.
  • Execution risk related to scaling production or capacity if governments and companies seek to rapidly increase output, which could influence manufacturing and aerospace supply chains.

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