Raytheon’s first quarter results for 2026 exceeded Wall Street’s revenue and non-GAAP profit expectations, but the market responded negatively, with shares declining more than 3%. Management attributed the quarter’s outperformance to robust demand across commercial and defense segments, with notable strength in missile systems and munitions. CEO Christopher Calio highlighted that “total deliveries [of munitions] were up over 40% year-over-year,” underscoring significant momentum in Raytheon’s defense portfolio. The company also pointed to successful execution of operational improvements and productivity initiatives, especially in automation and supply chain management, as key drivers of the quarter’s performance.
Is now the time to buy RTX? Find out in our full research report (it’s free for active Edge members).
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: $4.09 billion vs analyst estimates of $3.48 billion (18.5% margin, 17.7% 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
- Market Capitalization: $233.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From RTX’s Q1 Earnings Call
- Robert Stallard (Vertical Research) asked about supply chain risks for missile systems; CEO Christopher Calio explained that long-term framework agreements should help suppliers invest for capacity, but additional suppliers will be needed for resiliency.
- Peter Arment (Baird) inquired about the margin impact of new framework agreements; Calio said bundling materials and leveraging economies of scale could improve margins, but details depend on final contract negotiations.
- Myles Walton (Wolfe Research) asked about growth expectations for sensors and effectors in Raytheon; CFO Neil Mitchill noted double-digit growth in effectors and continued runway for sensors, especially for integrated air and missile defense programs.
- Kristine Liwag (Morgan Stanley) questioned Raytheon’s approach to lower-cost drone threats; Calio pointed to the Coyote counter-UAS system’s successful field deployment and new non-kinetic, reusable variants as key solutions.
- Mariana Perez Mora (BofA) sought clarification on tariff impacts; Mitchill explained that the outlook remains unchanged with mitigations in place, and any potential refunds from court rulings have not yet been recognized in guidance.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team is focused on (1) tracking progress on defense framework agreements and associated capacity expansions, (2) monitoring the pace of commercial aftermarket recovery and new product adoption in both the GTF Advantage and hybrid-electric propulsion, and (3) evaluating the company’s ability to navigate supply chain and tariff headwinds while sustaining margin improvements. The evolution of global security dynamics and regulatory rulings on tariffs will also be closely watched.
RTX currently trades at $173.41, down from $195.79 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
