RTX Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.79%.
Did RTX Beat Earnings? Q3 2025 Results
RTX posted a standout third quarter, reporting adjusted EPS of $1.70 against a Wall Street consensus of $1.41 — a 20.64% beat — while revenue climbed 11.9% year-over-year to $22.48 billion, ahead of the $21.32 billion estimate by 5.42%. The engine driving those results was broad-based organic momentum, with all three segments — Pratt & Whitney, Collins Aerospace, and Raytheon — delivering double-digit organic growth that collectively pushed total segment adjusted margins to 12.1% from 11.4% a year ago, marking the sixth straight quarter of year-over-year margin expansion. Pratt & Whitney was the standout, with a 23% surge in commercial aftermarket revenue anchoring 16% segment sales growth. Free cash flow of $4.03 billion roughly doubled the prior-year quarter's figure, underscoring the quality of earnings beyond the headline numbers. Backlog swelled to $251 billion on $37 billion of new awards in the quarter alone. Management raised full-year adjusted EPS guidance to $6.10–$6.20 and lifted the adjusted sales outlook to $86.50–$87.00 billion, signaling confidence that the demand cycle across both commercial aerospace and defense has further room to run.
- Double-digit organic sales growth across all three segments
- Sixth consecutive quarter of year-over-year adjusted segment margin expansion
- 23% increase in Pratt & Whitney commercial aftermarket sales
- 16% increase in Collins Aerospace commercial OE driven by narrowbody platforms
- 13% increase in Collins Aerospace commercial aftermarket driven by parts, repairs, and retrofit activity
- F135 program including Lot 18 contract award driving Pratt & Whitney military growth
- International Patriot and SM-6 programs driving Raytheon growth
- Favorable program mix and improved net productivity at Raytheon
- $37 billion of new awards in the quarter
“Strong execution in the third quarter enabled us to deliver double-digit organic sales growth across all three segments and our sixth consecutive quarter of year-over-year adjusted segment margin expansion.”
RTX CEO, on the earnings call
Forward Guidance & Outlook
RTX raised its full year 2025 outlook: adjusted sales of $86.5–$87.0 billion (up from $84.75–$85.5 billion), organic sales growth of 8–9% (up from 6–7%), adjusted EPS of $6.10–$6.20 (up from $5.80–$5.95), and confirmed free cash flow of $7.0–$7.5 billion.
RTX YoY Financials
RTX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.