Why Is RTX Stock Up Today? RTX on Oct 20, 2026: Q3 Beat and a Third Guidance Raise
RTX beat third-quarter estimates on October 20, 2026, raised its 2026 outlook for the third time and reported a record $340 billion backlog. About $0.25 of its adjusted EPS came from a tariff cost recovery.
- RTX earned an adjusted $2.26 a share in the third quarter of 2026, above the $1.78 expected, on sales of $25.0 billion; about $0.25 of that came from recovering IEEPA tariff costs.
- It raised 2026 adjusted EPS guidance to $7.65 to $7.75 from $7.10 to $7.25, its third raise this year, and backlog reached a record $340 billion.
- RTX traded about 2% higher before the open, and our data showed it at $196.89 at 07:06 ET, still well below the $224.28 it reached after the Tomahawk contract in August.
RTX stock rose before the open on Tuesday, October 20, 2026, after the company reported third-quarter adjusted earnings of $2.26 a share against the $1.78 analysts expected and raised its 2026 outlook for the third time this year. Shares traded about 2% higher in premarket trading, according to Investing.com, and our one-minute data showed RTX at $195.70 at 06:50 ET, before the release, and $196.89 at 07:06 ET. The guidance headline reached the MoveSurge news feed at 06:56:47 ET.
About $0.25 of the adjusted figure came from recovering costs RTX had paid on tariffs imposed under the International Emergency Economic Powers Act (IEEPA), so the beat without that item was about 23 cents (our calculation). The full breakdown, including the three business units, is in our article on RTX's third-quarter results.
| 2026 guidance | Before October 20 | Now |
|---|---|---|
| Adjusted EPS | $7.10 to $7.25 | $7.65 to $7.75 |
| Adjusted sales | $95.0 billion to $96.0 billion | $97.0 billion to $97.5 billion |
| Free cash flow | $8.50 billion to $8.75 billion | $9.0 billion to $9.2 billion |
RTX's dated catalysts in 2026
- July 23, 2026: second-quarter results. RTX rose 4.6% in the first minute after the release and was up 6.2% after 15 minutes.
- August 17, 2026: Raytheon won a seven-year, $22.9 billion Navy contract to build Tomahawk cruise missiles at a rate of more than 1,000 a year. The stock rose 0.59% to $224.28 the next day.
- October 20, 2026: third-quarter results, a third guidance raise and a record $340 billion backlog, with defense backlog up to $164 billion from $119 billion at June 30.
Where the stock stands
Even after Tuesday's gain, RTX traded about 12% below the $224.28 it reached after the Tomahawk award (our calculation from $196.89). The record backlog, much of it from multi-year missile contracts for Tomahawk and AMRAAM, gives RTX years of committed defense work, and the company now expects organic sales growth of 10% to 11% for 2026.
Why is RTX stock up today?
RTX reported third-quarter adjusted EPS of $2.26 against $1.78 expected on October 20, 2026, raised its 2026 guidance to $7.65 to $7.75 and reported a record $340 billion backlog. The stock traded about 2% higher before the open.
How much of RTX's beat came from tariffs?
About $0.25 of the $2.26 adjusted EPS came from recovering IEEPA tariff costs. Without it, adjusted EPS would have been about $2.01, still above the $1.78 estimate.
What was the RTX Tomahawk contract?
In August 2026 Raytheon won a seven-year, $22.9 billion Navy contract to produce more than 1,000 Tomahawk cruise missiles a year.
Sources
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RTX Reports Q3 2026 Results
— RTX via PR Newswire
Adjusted EPS $2.26, sales $25.0 billion, record $340 billion backlog with $164 billion defense.
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RTX Q3 2026 earnings release (Exhibit 99 to Form 8-K)
— RTX via SEC EDGAR
IEEPA cost recovery in adjusted EPS; raised 2026 EPS, sales, organic growth and free cash flow guidance.
-
RTX stock climbs on strong earnings beat and raised outlook
— Investing.com
Adjusted EPS against $1.78 consensus and the raised outlook.
-
Why is RTX stock rallying today?
— Investing.com
Shares up about 2% before the open after the results.
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