Aerospace and defense company Raytheon (NYSE: RTX) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 8.7% year on year to $22.08 billion. On the other hand, the company’s full-year revenue guidance of $93 billion at the midpoint came in 0.5% below analysts’ estimates. Its non-GAAP profit of $1.78 per share was 16.9% above analysts’ consensus estimates.
Is now the time to buy RTX? Find out by accessing our full research report, it’s free.
RTX (RTX) Q1 CY2026 Highlights:
- Revenue: $22.08 billion vs analyst estimates of $21.49 billion (8.7% year-on-year growth, 2.7% beat)
- Adjusted EPS: $1.78 vs analyst estimates of $1.52 (16.9% beat)
- Adjusted EBITDA: $3.76 billion vs analyst estimates of $3.48 billion (17% margin, 8.1% beat)
- The company slightly lifted its revenue guidance for the full year to $93 billion at the midpoint from $92.5 billion
- Management raised its full-year Adjusted EPS guidance to $6.80 at the midpoint, a 1.5% increase
- Operating Margin: 11.6%, up from 10% in the same quarter last year
- Free Cash Flow Margin: 5.9%, up from 3.9% in the same quarter last year
- Market Capitalization: $263.5 billion
"RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth* across all three segments, driven by our continued focus on execution and delivering our backlog," said RTX Chairman and CEO Chris Calio.
Company Overview
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, RTX grew its sales at a decent 8% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. RTX’s annualized revenue growth of 8.8% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
This quarter, RTX reported year-on-year revenue growth of 8.7%, and its $22.08 billion of revenue exceeded Wall Street’s estimates by 2.7%.
Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
RTX has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.2%, higher than the broader industrials sector.
Analyzing the trend in its profitability, RTX’s operating margin rose by 3.1 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, RTX generated an operating margin profit margin of 11.6%, up 1.6 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
RTX’s EPS grew at 20.3% compounded annual growth rate over the last five years, higher than its 8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into the nuances of RTX’s earnings can give us a better understanding of its performance. As we mentioned earlier, RTX’s operating margin expanded by 3.1 percentage points over the last five years. On top of that, its share count shrank by 9.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For RTX, its two-year annual EPS growth of 12.9% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q1, RTX reported adjusted EPS of $1.78, up from $1.47 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects RTX’s full-year EPS of $6.59 to grow 6.2%.
Key Takeaways from RTX’s Q1 Results
We were impressed by how significantly RTX blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed and its full-year EPS guidance fell slightly short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 2.1% to $200.00 immediately after reporting.
Sure, RTX had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
