RTX (RTX) reported strong Q2 results as all three business segments exceeded expectations amid robust aerospace and defense demand, RBC Capital Markets said.
Adjusted earnings beat expectations by 14%, while organic growth reached 18% at Raytheon, 17% at Pratt & Whitney and 13% at Collins Aerospace. The company's total backlog rose 22% to $289 billion.
Raytheon's roughly $20 billion in awards was supported by strong missile defense demand and international orders.
The company raised its 2026 sales, adjusted earnings and free cash flow guidance, with the midpoint for sales and adjusted earnings above consensus estimates. The brokerage said the stronger-than-expected guidance raise should support sentiment.
Investor attention is likely to shift toward Raytheon's strong defense momentum and execution on Pratt & Whitney's GTF recovery remains on track, according to the note Thursday.
RBC maintained an outperform rating on RTX and raised the price target to $250 from $230.
Shares of RTX were up 2.1% in Friday afternoon trading.
Price: $213.66, Change: $+4.50, Percent Change: +2.15%