New York, Jan 28, 2026, 12:54 (EST) — Regular session
- RTX shares dipped roughly 0.4%, settling at $200.47, after fluctuating between $199.67 and $205.22.
- The company projected adjusted sales between $92 billion and $93 billion for 2026, with adjusted EPS expected to land in the $6.60 to $6.80 range.
- Investors focus on cash returns, tariff risks, and updates on Pratt & Whitney’s geared-turbofan inspections.
RTX Corp shares slipped Wednesday, retreating after a post-earnings lift as investors digested the defense and aerospace giant’s 2026 forecast amid changing policy winds in Washington. The stock fell 0.4% to $200.47 by midday.
Why it matters now: RTX is caught between ramping up its defense output quickly and managing a commercial aerospace sector that’s still tangled in supply chain issues and an expensive jet-engine inspection program.
Shareholders are focused not only on how much RTX can sell but also on how it chooses to deploy its cash. The White House is scrutinizing dividends and buybacks more closely, while aerospace firms continue to caution that tariffs and supply chain bottlenecks could make their forecasts unpredictable.
RTX reported $24.2 billion in sales for the fourth quarter, a 12% rise, along with adjusted earnings of $1.55 per share, according to its Tuesday filing. The company closed 2025 with a backlog of $268 billion. It forecast adjusted sales of $92 billion to $93 billion for 2026, expecting free cash flow of $8.25 billion to $8.75 billion. CEO Chris Calio described the start of 2026 as having “great momentum,” but noted plans for increased investment to boost production capacity. (SEC)
Management has been counting on strong engine demand and repair work. RTX highlighted increased sales of the F135 engine used in Lockheed Martin’s F-35, plus steady commercial maintenance as airlines extend the life of older planes amid new jet shortages. The company flagged tariff pressures and announced a plan to boost 2026 munitions facility investment by $500 million. On the earnings call, executives stressed they could cover these investments while maintaining their dividend. (Reuters)
The dividend pledge has taken on a life of its own. Calio reassured investors they “remain committed to the dividend,” insisting the company can boost spending on plant and equipment without disappointing shareholders. RTX casts this as working with the Pentagon, not clashing, as Washington pushes contractors to accelerate deliveries and ramp up capacity. (Breaking Defense)
On the commercial front, Pratt & Whitney continues to tackle the geared-turbofan (GTF) inspection campaign, addressing a manufacturing defect that’s led to mandatory checks and parts replacements on engines powering Airbus A320neo-family jets. Calio noted that aircraft-on-ground related to the recall dropped in the fourth quarter, now down 20% from the 2025 peak. Meanwhile, maintenance, repair, and overhaul (MRO) activity showed gains. (Flight Global)
Sector trading offered little relief on Wednesday. The iShares U.S. Aerospace & Defense ETF dropped roughly 1.2%, signaling investors were stepping away despite a string of strong quarterly reports from several firms.
But the setup isn’t without risks. A larger tariff bill, fresh supply chain disruptions, or a slower-than-anticipated rebound in Pratt’s shop capacity could tighten margins and cash flow, even if sales remain steady. On top of that, stricter rules on capital returns would hit a corner of the defense sector that investors have leaned on for steady returns.
The next trigger will probably come out of Washington, not Hartford or Arlington. Following the Jan. 7 executive order, the Defense Department has until Feb. 6—a 30-day deadline—to label “underperforming” contractors. Further contract actions are scheduled within 60 days, a move investors believe could impact buybacks, dividends, and executive compensation. (The White House)
