RTX raises 2026 profit forecast on strong weapon sales

The defense contractor RTX CORP has increased its financial outlook for 2026, citing a surge in demand for missile systems and robust aftermarket sales driven by global geopolitical instability. The company is benefiting from efforts by the United States to replenish its military inventories, which have been strained by ongoing operations and the need to support allies. These stockpiles have faced pressure following military activities involving Iran and other regional tensions. Global defense spending has risen sharply since Russia launched its invasion of Ukraine in 2022. Billions of dollars worth of equipment, including artillery and anti-tank missiles, have been utilized in that conflict as well as during military operations conducted by Israel in Gaza. RTX recently secured a significant $3.7 billion contract to supply Patriot GEM-T interceptor missiles to Ukraine, highlighting the critical role of its defense hardware. The company’s Raytheon business, which produces air and missile defense systems, sensors, and space-based technology, reported a 10% increase in first-quarter sales to $6.95 billion. In the commercial sector, RTX has seen strong performance from its Pratt and Whitney segment, where aftermarket sales rose 19%. This growth is partly due to airlines operating older aircraft for longer periods as supply chain disruptions delay the delivery of new jets. However, the unit is currently facing a dispute with AIRBUS SE, which has alleged that the engine manufacturer prioritized repair shops over new engine shipments. For the first quarter, RTX reported total revenue of $22.08 billion, a 9% increase year-over-year. Adjusted earnings per share rose 21% to $1.78. Based on these results, the company now expects full-year adjusted profit to reach between $6.7 and $6.9 per share. Furthermore, RTX has raised its 2026 revenue forecast to a range of $92.5 billion to $93.5 billion.