RTX Corporation (NYSE:RTX) delivered a strong financial performance in the fourth quarter of 2025, reporting results that exceeded Wall Street forecasts and supported a rise in its share price. The aerospace and defense giant recorded fourth-quarter sales of $24.238 billion, marking a 12% increase from $21.623 billion reported in the same period of the previous year. This growth was reflected in earnings, cash flow, and backlog, underpinning the company’s positive momentum as it heads into 2026.
The company posted a GAAP diluted earnings per share (EPS) of $1.19 for the quarter, compared to $1.10 in the prior-year quarter. This figure incorporated a range of adjustments, including $0.31 due to acquisition accounting, $0.02 related to restructuring, and $0.03 resulting from other significant or non-recurring items. The adjusted EPS improved slightly by 1% to reach $1.55, outperforming analyst projections that anticipated $1.47. Similarly, revenue topped the $22.737 billion estimate.
Operating cash flow for the quarter registered $4.165 billion, while free cash flow amounted to $3.195 billion, both significantly higher than the previous year’s levels. Capital expenditures for the period were recorded at $1.0 billion. RTX’s backlog remained substantial at $268 billion, comprising $161 billion in commercial orders and $107 billion in defense commitments. Notably, the company completed the divestiture of Collins Aerospace’s Simmonds Precision Products business during the quarter.
Performance by Segments
Collins Aerospace
Collins Aerospace posted sales of $7.736 billion in the quarter, reflecting a 3% increase year-over-year. The segment’s reported operating profit reached $1.402 billion, with an adjusted figure of $1.223 billion. Reported return on sales (ROS) was 18.1%, while the adjusted ROS stood at 15.8%. The reported profit figures factored in gains from the Simmonds Precision Products sale. However, adjusted profits were tempered by the effects of the divestiture and the impact of increased tariffs across the business.
Pratt & Whitney
This division experienced a 25% surge in quarterly sales, totaling $9.496 billion. It reported operating profits of $773 million and adjusted operating profits of $776 million. The reported and adjusted ROS were 8.1% and 8.2%, respectively. The sales growth was attributed to higher commercial and military volumes, partially offset by elevated tariffs, increased selling, general & administrative (SG&A) expenses, and the absence of a roughly $70 million insurance recovery recorded in the prior year. The previous year also included a $157 million charge related to a customer bankruptcy.
Raytheon
Raytheon registered sales of $7.657 billion in the fourth quarter, ascending 7% from the previous year. Both reported and adjusted operating profits were $885 million, with a return on sales of 11.6%. The improved performance was driven by increased volume for land and air defense systems such as Patriot and GEM-T, alongside naval programs including the Evolved SeaSparrow Missile and Tomahawk missile systems.
Full-Year 2025 Results
For the entire year of 2025, RTX generated sales of $88.603 billion, indicating a 10% increase, with an organic sales growth of 11%. The GAAP diluted EPS stood at $4.96, while adjusted EPS was more robust at $6.29. Net income attributable to common shareholders was $6.732 billion, with adjusted net income rising to $8.531 billion. Operating cash flow for the year reached $10.567 billion, and free cash flow was $7.940 billion, supported by capital expenditures totaling $2.627 billion. By year-end, cash and cash equivalents were $7.435 billion, against total debt obligations of $37.700 billion.
Outlook for 2026
Looking ahead, RTX provided guidance for adjusted sales between $92.0 billion and $93.0 billion, closely aligned with the analyst consensus of $92.461 billion. The company anticipates organic sales growth within the 5% to 6% range. Adjusted earnings per share are projected between $6.60 and $6.80, compared with the $6.71 estimate, accompanied by expected free cash flow in the range of $8.25 billion to $8.75 billion.
RTX's Chairman and CEO, Chris Calio, commented, "RTX delivered strong sales, adjusted EPS and free cash flow in 2025, enabled by our continued focus on operational performance and execution. We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook."
Stock Market Reaction
Following the release of the earnings report, RTX shares experienced a noteworthy increase, climbing 3.04% to trade at $200.03 in premarket sessions on Tuesday. The stock price is approaching its 52-week high of $203.03, underlining investor confidence in the company’s growth trajectory and financial health.