ARLINGTON, Virginia -- RTX reported second quarter fiscal year 2026 sales of $24.7 billion, a 14% increase from the prior-year period, driven by growth across its commercial aerospace and defense businesses. Net income increased 29% to $2.1 billion, while operating cash flow reached $3.5 billion and free cash flow totaled $2.9 billion, reflecting improved operating performance and stronger cash generation.
RTX recorded a company backlog of $289 billion at the end of the quarter, including approximately $170 billion in commercial aerospace and $119 billion in defense orders. Demand remained strong across both markets, supported by continued commercial aircraft maintenance activity and rising global defense spending. Defense bookings were led by missile systems and air defense programs, while commercial aerospace benefited from sustained aftermarket demand as airlines continued extending the service lives of existing fleets amid aircraft delivery constraints. Nearly half of Raytheon's first-half bookings originated from international customers, including approximately $7 billion in Europe.
Reflecting the strong first-half performance, RTX raised its fiscal year 2026 outlook. The company now expects sales of approximately $95 billion to $96 billion, up from its previous forecast of $92.5 billion to $93.5 billion, while increasing its adjusted earnings and free cash flow expectations. The revised outlook reflects continued momentum in commercial aerospace services, improved execution across the portfolio, and sustained demand for defense systems amid elevated global security requirements.
INDUSTRY SEGMENTS
Collins Aerospace
Collins Aerospace reported sales of approximately $8.2 billion, an increase of 8% from the prior year. Growth was driven primarily by commercial aftermarket activity, supported by continued demand for maintenance, repair, and overhaul services as global airline fleets remained heavily utilized. Commercial original equipment production also benefited from higher aircraft manufacturing rates, while defense avionics and mission systems continued to provide stable revenue.
Profitability improved through higher commercial aftermarket volumes and favorable operating leverage. The segment continues to benefit from a balanced mix of commercial and defense programs, providing resilience against fluctuations in individual aircraft production schedules.
Pratt & Whitney
Pratt & Whitney generated sales of approximately $8.9 billion, up 16% year over year. Growth reflected strong commercial engine aftermarket demand, increased military engine activity, and continued support for the F135 propulsion system powering the F-35. Original equipment deliveries remained constrained by supply chain limitations, although aftermarket services continued to offset those pressures.
Operating performance improved despite ongoing production constraints affecting geared turbofan engine deliveries. Higher maintenance activity and favorable commercial service revenues continued to support margins while the company worked to expand manufacturing capacity.
Raytheon
Raytheon reported sales of approximately $8.3 billion, an 18% increase over the prior year, representing the fastest growth among RTX's business segments. Revenue gains were driven by higher production of missile systems and integrated air and missile defense programs, reflecting increased procurement by the United States and allied nations. International demand remained particularly strong as European and Indo-Pacific customers accelerated modernization efforts.
Operating profit benefited from increased production volumes and improved execution across missile and defense programs. The segment continues to capitalize on expanding global demand for precision weapons, missile interceptors, and integrated air defense capabilities, supporting long-term production growth.
RTX's second quarter results underscore the benefits of its diversified portfolio spanning commercial aerospace and defense markets. Record backlog, improving cash generation, and increased guidance indicate solid medium-term revenue visibility, while sustained investment in missile production, aircraft sustainment, and propulsion systems positions the company to benefit from continued commercial aviation recovery and elevated global defense spending.
