RTX Corporation: From Drones to Sensors—Why Modern Warfare Is Driving a New Demand Cycle!

Raytheon Technologies Corporation reported a solid start to fiscal year 2026, with organic adjusted sales increasing 10% year-over-year to $22.1 billion, supported by growth across commercial original equipment (OE), commercial aftermarket, and defense segments. Adjusted earnings per share rose 21% to $1.78, attributed to a 14% growth in segment operating profit and favorable tax impacts, while free cash flow improved by $500 million to $1.3 billion. The company maintained a strong backlog of $271 billion, up 25% annually, driven by significant commercial wins such as additional GTF engine selections by Vietjet Air and Finnair, and substantial defense awards including over $3 billion for Pratt’s F135 production and $6.6 billion of Raytheon defense contracts encompassing land, air, and missile defense systems. Raytheon emphasized durable underlying demand across its commercial aerospace and defense businesses despite global uncertainties.