GE Aerospace and RTX Earnings Preview: What to Watch as Aerospace and Defense Report
GE Aerospace and RTX both beat estimates last quarter and raised guidance, but Wall Street already prices in another raise before either company says a word. Find out what the earnings releases on Tuesday morning need to show to keep…
GE Aerospace (NYSE:GE | GE Price Prediction) and RTX (NYSE:RTX) both report third-quarter results on Tuesday, October 20, 2026, before the opening bell. Because they report the same morning, the two releases together will reveal how strong aftermarket and defense demand truly are.
Raised Guidance Sets a Higher Bar This Quarter
GE Aerospace posted second-quarter adjusted earnings per share (EPS) of $2.02, against a $1.86 consensus, as revenue rose 21.1% to $13.35 billion. Free cash flow reached $3.03 billion, and management raised full-year adjusted EPS guidance to $7.65 to $7.85.
RTX also beat estimates, reporting $1.89 per share against the $1.66 consensus. CEO Chris Calio pointed to “16 percent organic sales growth” and “$2.9 billion of free cash flow,” adding that the backlog was “up 22 percent year over year.” RTX raised adjusted EPS guidance to $7.10 to $7.25. That is the bar the third quarter has to clear.
In April, Jim Cramer called both stocks bargains after they sold off despite strong earnings. Since then, the two stocks have diverged significantly. RTX is up 20.7% over the past year, while GE Aerospace has gained 4.7%.
Consensus Estimates for Both Companies
| Metric | GE Aerospace | RTX |
|---|---|---|
| Q3 2026 EPS consensus | $1.99 | $1.78 |
| Q3 2025 reported EPS | $1.66 | $1.70 |
| Implied EPS growth | 19.9% | 4.7% |
| Q3 2026 revenue consensus | $12.84B | $24.11B |
| Implied revenue growth | 5.4% | 7.2% |
| FY2026 EPS consensus | $7.92 | $7.25 |
| FY2026 EPS growth | 24.4% | 15.3% |
| FY2026 revenue consensus | $50.34B | $96.19B |
| FY2026 revenue growth | 9.8% | 8.6% |
Aftermarket Momentum Meets Production Limits
At GE Aerospace, start with services. Commercial services revenue rose 26% last quarter, and the full-year plan calls for services growth in the low 20s. LEAP deliveries face a hard comparison against the 40% jump a year ago. Free cash flow also needs to stay on pace for the $8.9 to $9.2 billion target.
Supply is the other test. Cramer noted on September 8, 2026, that GE Aerospace spent nearly $12 billion to buy castings manufacturer Consolidated Precision Products. He called that business critical for commercial aircraft and defense, “both of which are booming now.” Look for any early read on how the deal supports output.
At RTX, the Raytheon segment grew 18% last quarter on Patriot, Standard Missile, and AMRAAM volume. Pratt & Whitney’s commercial aftermarket rose 25%, though GTF powder metal inspections and tariffs remain open risks. Odd Lots guest Chris Power described the capacity problem on September 21, 2026: “You can have the best Raytheon missile, but if you literally can’t just make mass, which is ultimately a production issue, there’s no choice.”
The comparison is also hard. A year ago, RTX booked $37 billion in new awards and generated $4.03 billion of free cash flow.
Estimates Already Assume Another Guidance Raise
Full-year EPS consensus already clears the high end of guidance at both companies. For GE Aerospace, analysts expect $7.92 against a $7.85 ceiling. For RTX, the figure is $7.25 against $7.25. Sentiment toward RTX has remained warm. On October 9, 2026, Cramer said, “Instead of Microsoft, I want to go with RTX and I’m going to go with RTX.” If either company holds guidance flat, that guidance will matter more than the beat.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
