Business · NEWS EXPLAINER
RTX backlog reaches $340 billion as Q3 sales rise 11%: what changed in the 2026 outlook
All three businesses grew sales and new awards exceeded $81 billion. RTX raised adjusted sales, EPS and free-cash-flow forecasts, while quarterly cash flow fell from a strong prior-year comparison.
RTX reported $24.965 billion of third-quarter 2026 sales, up 11%, as more than $81 billion of new awards pushed backlog to a record $340 billion. Collins Aerospace, Pratt & Whitney and Raytheon each recorded double-digit sales growth.
GAAP EPS was $1.89 and adjusted EPS was $2.26. RTX raised full-year adjusted sales guidance to $97.0–$97.5 billion, adjusted EPS to $7.65–$7.75 and free cash flow to $9.0–$9.2 billion.
More than $81 billion of awards lifted backlog to $340 billion
RTX said new commercial and defense awards exceeded $81 billion in the quarter. Total backlog reached a record $340 billion, split between $176 billion of commercial work and $164 billion of defense work. Backlog is contracted future work, not revenue already recognized.
Sales grew across all three businesses
Quarterly sales rose 11% to $24.965 billion. Collins Aerospace sales increased 10%, Pratt & Whitney sales increased 10%, and Raytheon sales increased 14%. Collins was helped by a 23% rise in commercial original-equipment sales, Pratt by 21% commercial aftermarket growth, and Raytheon by higher naval and air-defense volume.
GAAP and adjusted earnings tell different parts of the quarter
GAAP earnings per share were $1.89, while adjusted EPS was $2.26, up 33%. RTX said adjusted EPS included $0.25 from IEEPA cost recovery. Pratt & Whitney also recorded a $363 million customer-bankruptcy charge in reported operating profit, making the GAAP-to-adjusted distinction material.
Cash flow was positive but lower than a year earlier
Operating cash flow was $2.868 billion and free cash flow was $2.119 billion. The full table shows those measures fell 38% and 47%, respectively, from the prior-year quarter. Free cash flow is a non-GAAP measure, and the company says it should not be used in isolation.
RTX raised sales, EPS and free-cash-flow forecasts
RTX lifted adjusted sales guidance to $97.0–$97.5 billion from $95.0–$96.0 billion, adjusted EPS guidance to $7.65–$7.75 from $7.10–$7.25, and free cash flow guidance to $9.0–$9.2 billion from $8.50–$8.75 billion. These are company forecasts, not guarantees, and forward-looking non-GAAP figures are not reconciled because excluded items may vary.
