Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Adjusted Sales | $25 billion | up 12% organically |
| Adjusted EPS | $2.26 | up 33% year-over-year |
| Free Cash Flow | $2.1 billion | Not stated |
| Raytheon Bookings | $52.3 billion | Not stated |
| Backlog | $340 billion | up 36% year-over-year |
Guidance and outlook
- Full year adjusted sales: $97 billion to $97.5 billion
- Full year adjusted EPS: $7.65 to $7.75
- Full year free cash flow: $9 billion to $9.2 billion
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year guidance for sales, EPS, and free cash flow, citing strong operational momentum and record backlog levels. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Raytheon Munitions Ramp
Asked: How will the new munitions framework agreements impact margins and production?
Answer: Management expects these contracts to provide a decade of demand visibility and support margin expansion at Raytheon as production scales over the next 7 to 10 years.
Collins Margins
Asked: Why did margins pull back in the implied Q4 outlook for Collins?
Answer: Management cited higher R&D investment, increased digital spending, and timing items, while emphasizing that long-term structural cost actions remain on track.
Supply Chain
Asked: How is RTX managing component shortages like circuit boards given the AI build-out?
Answer: The company is working with the government to streamline testing requirements and qualify new suppliers to ensure priority access to critical components.
Pratt & Whitney Aftermarket
Asked: How much of the aftermarket growth is driven by the GTF program?
Answer: The majority of growth is driven by the GTF program, which management expects will eventually outweigh the decline of the V2500 program.
What to watch before the next call
- Defense budget developments and their impact on program funding.
- Supply chain bottlenecks, specifically regarding castings and rocket motors.
- The transition to GTF Advantage and Hot Section Plus engine configurations.
