RTX · Q2 FY2026
RTX Corp Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $24.71B | $21.58B (yr ago) | Beat |
| EPS | $1.57 | $1.22 (yr ago) | Beat |
| Free Cash Flow | $2.88B | -$0.07B (yr ago) | Beat |
| Gross Margin | 8.7% | not disclosed on a comparable basis (yr ago) | Miss |
| Operating Margin | 11.4% | 9.9% (yr ago) | Beat |
What changed
Q2 FY2026 revenue increased 14.5% year over year to $24.71B, EPS rose 28.7% to $1.57, and operating margin expanded 1.5 percentage points to 11.4%. Free cash flow improved to $2.88B from negative $0.07B, while net debt declined to $28.93B; the standardized XBRL gross-margin figure is not comparable with a disclosed prior-year margin.
Impact on the investment thesis
This is initial coverage, so there is no prior fair value to revise. We establish fair value at $176 per share: the quarter strengthened operating and cash-flow evidence, but the $198.12 share price and 34.9x TTM earnings multiple already discount substantial improvement.