RTX stock outlook holds as $340 billion backlog supports 2027 growth

RTX Corporation kept its 2026 financial outlook unchanged at the Baird 2026 Global Industrial Conference on Tuesday, November 10. Chief Financial Officer Neil Mitchill said the aerospace and defense group remains focused on executing against strong demand and a large order book in the final weeks of the year, according to Investing.com.

RTX stock traded at 179.48 euros on Lang & Schwarz at 14:05 CET on Wednesday, November 11.

Guidance rests on year-end execution

RTX continues to target 2026 sales of 97 billion to 97.5 billion US dollars, organic sales growth of 10% to 11%, adjusted earnings per share of 7.65 to 7.75 US dollars and free cash flow of 9 billion to 9.2 billion US dollars. Mitchill said the company was on track with 51 days remaining in the fiscal year when he addressed investors.

The immediate priority is delivery. Management said fourth-quarter performance will depend heavily on converting production into customer deliveries and collecting receivables. That places execution and cash conversion ahead of a new change in guidance as RTX approaches the end of 2026.

Backlog supports the 2027 view

RTX described demand as strong across Pratt & Whitney, Collins Aerospace and Raytheon. The company expects 2027 to bring sales growth, earnings growth, operating-profit growth, margin expansion and higher free cash flow across the three businesses. Formal 2027 guidance is planned for the January earnings call.

Commercial aerospace remains an important support. Management pointed to continued original-equipment production for Boeing and Airbus as well as aftermarket growth that is still running ahead of the broader market. Raytheon also has more than 80% of expected 2027 sales in backlog, with at least 85% fully funded, according to the conference discussion.

Defense orders add visibility

Raytheon booked 9 billion US dollars of international awards in the third quarter, while year-to-date international bookings through September were 2.5 times the level of the same period in 2025. Four munitions framework agreements covering Tomahawk, AMRAAM, SM-6 and SM-3 have moved into roughly 70 billion US dollars of undefinitized contracts. The arrangements provide long-term demand visibility, although revenue recognition and cash generation will depend on production and deliveries.

The 2027 comparison also includes headwinds. RTX expects a nonrecurring tax-related benefit and a pension contribution to roll off, while continuing to invest heavily in research, development, capacity and its supply chain. Management nevertheless expects free cash flow to rise as operating growth and cash conversion offset those effects.

Investor focus shifts to delivery

For investors, the conference added detail rather than a new earnings revision. The unchanged targets reduce the immediate guidance question, while backlog conversion, commercial aftermarket demand, missile-program execution and customer collections remain key indicators for the next quarterly update. The January earnings call is the next major scheduled point for formal 2027 targets.

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