RTX Q2 Earnings Beat Expectations, Raises Full-Year Sales and Profit Guidance
Miles Bennett
RTX posted adjusted EPS of $1.89 in Q2, beating estimates by $0.23, on revenue of $24.7 billion — up 14.5% year-over-year. Driven by surging commercial aviation aftermarket demand and expanding global defense spending, the company raised its full-year sales guidance to $95–96 billion, above Wall Street consensus.
How big was the Q2 beat?
Adjusted EPS came in at $1.89, topping consensus by $0.23. Revenue hit $24.7 billion, beating estimates by roughly $1.8 billion and rising 14.5% year-over-year.
GAAP EPS was $1.57, reflecting $0.27 in acquisition-accounting adjustments and $0.05 in restructuring charges. This means → real operating profit is higher than the headline GAAP figure; the adjusted number is the cleaner read on core earnings power.
How much did guidance go up — and where does it sit versus the Street?
Full-year adjusted sales guidance rose from $92.5–93.5 billion to $95–96 billion, above the LSEG analyst consensus of $94.08 billion.
Full-year adjusted EPS guidance rose from $6.70–6.90 to $7.10–7.25; Wall Street had been modeling $6.92.
In plain terms = RTX didn't just beat this quarter — it told the market "the rest of the year will be better too," by a margin that exceeds most analysts' models.
Where is the money coming from — how strong are the two engines?
Pratt & Whitney — the engine unit powering Airbus A320neo jets and Lockheed Martin F-35 fighters — posted revenue up 16% year-over-year to $8.89 billion. New-aircraft supply-chain bottlenecks are forcing airlines to extend older fleets, driving sustained demand for MRO (maintenance, repair and overhaul — the service that keeps aging planes flying).
Raytheon defense revenue rose 18% to $8.27 billion. Patriot, Standard Missile and AMRAAM (advanced medium-range air-to-air missile) air-defense systems are the primary drivers — conflicts in Ukraine and the Middle East are pushing governments to restock weapons inventories faster.
This reflects RTX riding two reinforcing cycles at once: a commercial-aviation aftermarket upcycle and a global defense restocking wave — both accelerating.
What does the order backlog tell us?
RTX's backlog grew 22% year-over-year to $289 billion — $170 billion commercial, $119 billion defense.
This means → even with current revenue already well above expectations, nearly $289 billion of work is still queued up, giving the revenue outlook high visibility.
One thing to watch: President Trump has proposed a record $1.5 trillion FY2027 military budget and urged defense firms to expand capacity. Whether commercial-aviation and defense demand can both sustain peak-cycle momentum at the same time is the key test for whether full-year guidance holds.
Content is for reference only, not financial advice.