RTX Q3 FY2026: EPS beat, guidance raised, free cash flow down 47.0%
RTX beat on adjusted EPS ($2.26 versus $1.79 consensus) and raised full-year adjusted sales, EPS and free cash flow guidance on 12.0% organic growth and a record $340 billion backlog. The caveat: $0.25 of the EPS beat and roughly $0.3 billion of operating cash flow came from IEEPA cost recovery, and third-quarter free cash flow fell 47.0% year over year. Read the scorecard for growth, then the balance sheet for cash quality.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $1.89 versus $1.41 a year ago; adjusted EPS of $2.26 beat the $1.79 consensus by $0.47, or 26.0%. The $0.37 gap between GAAP and adjusted is $0.26 of acquisition accounting adjustments and $0.11 of restructuring and other items. Remove the $0.25 of IEEPA recovery and adjusted EPS was $2.01, still up 18.2% on last year's $1.70.
Sales came in at $24.97 billion, up 11.0% from $22.48 billion a year earlier and 12.0% on an organic basis. Product sales were $18.26 billion and services $6.71 billion, so this was a hardware-volume quarter as much as an aftermarket one. The sequential run in the data is steady: $22.08 billion in Q1 FY2026, $24.71 billion in Q2 and $24.97 billion now.
Full-year adjusted sales guidance is now $97.0–$97.5 billion from $95.0–$96.0 billion, adjusted EPS $7.65–$7.75 from $7.10–$7.25, and free cash flow $9.0–$9.2 billion from $8.50–$8.75 billion. Organic sales growth guidance moved to 10–11% from 8–9%. Across the four updates in the data, the full-year sales midpoint has climbed from $92.50 billion to $97.25 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-20
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