New York, January 27, 2026, 19:10 EST — After-hours
- RTX shares climbed roughly 4% following fourth-quarter results and a 2026 outlook that exceeded some forecasts
- Growth was fueled by jet-engine demand and commercial aircraft repairs, with defense spending holding steady
- Investors are focused on tariffs, delivery-driven policy changes, and a fresh round of defense earnings this week
RTX shares climbed 3.7% to $201.28 in after-hours trading Tuesday. The aerospace and defense giant leaned on robust engine demand in its latest quarterly results and outlined targets for 2026.
This matters because RTX operates in two hot sectors: the jet-engine aftermarket, buoyed by airlines flying older planes longer, and defense programs still churning through a hefty backlog of orders.
This comes amid a stretch of defense-focused earnings. Traders are weighing if 2026 guidance represents a baseline or simply the growth plateau following a robust year.
RTX reported a 12% jump in fourth-quarter sales, reaching roughly $24.2 billion. Adjusted earnings came in at $1.55 per share. Looking ahead, the company projected adjusted sales between $92.0 billion and $93.0 billion for 2026, with adjusted earnings expected in the $6.60 to $6.80 per share range. Free cash flow, which is cash remaining after capital expenditures, is forecasted at $8.25 billion to $8.75 billion. The backlog sits at $268 billion. CEO Chris Calio noted the firm entered 2026 with “great momentum.” 1
Pratt & Whitney, the company’s engine division, saw a boost from rising sales of the F135 engine that powers Lockheed Martin’s F-35, along with steady repair work on the older F100 engine, Reuters reported. CFO Neil Mitchill told Reuters that RTX expects around $600 million in tariff impacts in 2025. The company also highlighted new uncertainty following a Trump executive order linking buybacks, dividends, and executive pay to weapons delivery schedules. RTX paid $3.57 billion in dividends in 2025 and plans to increase investment in munitions facilities by $500 million in 2026, the report said. 2
“Adjusted” numbers exclude items the company claims aren’t part of its core run-rate. Investors track these for trends, but the real focus often moves to cash—how much flows in versus what’s tied up in inventory and programs.
Wall Street reacted fast. TD Cowen’s Gautam Khanna boosted his price target on RTX to $225. Not far behind, Vertical Research Partners’ Robert Stallard pushed his target even higher, to $227, reports StreetInsider. 3
Defense stocks stirred the pot Tuesday as Northrop Grumman released earnings, highlighting demand driven by geopolitical tensions. Still, its 2026 forecast fell short of some analyst expectations. 4
General Dynamics will hold its fourth-quarter earnings call on Wednesday, swiftly followed by Lockheed Martin’s session covering both fourth-quarter and full-year results on Thursday morning. 5
Investors remain on edge despite a smooth quarter. Pratt & Whitney is under the microscope for engine availability issues, while Airbus has flagged that it hasn’t yet struck a deal with the engine maker on supply volumes “for the foreseeable future.” 6
Traders will be eyeing whether RTX can sustain its post-earnings move during Wednesday’s session. They’ll also be tracking any shifts in tone on 2026 budgets, delivery timelines, and pricing power from other defense primes’ commentary.
