RTX

For questions about this article or underlying research, email [email protected]. GE Aerospace (GE) stock fell 3.7% on October 20, 2026, when the company reported its fiscal Q3 2026 results. The S&P 500 rose 0.3% during the same session. Management raised its 2026 forecast that morning, but by October 22 the shares traded 5.7% below their pre-report close. So how much did GE Aerospace's forecast actually go up? How Much Did GE Aerospace Raise Its 2026 Forecast? Management increased its 2026 operating profit forecast to a range of $10.9 billion to $11 billion, adding $300 million at the midpoint. The adjusted EPS outlook rose to between $8.00 and $8.10, an increase of $0.30 at the midpoint compared with $7.75 in the July release. The company now expects free cash flow of $9.1 billion to $9.4 billion, lifting the projection $200 million above the prior guide of $9.05 billion. Earnings for the quarter also beat expectations. GE Aerospace reported $2.25 a share in fiscal Q3 2026, compared with a consensus of $2.07. Revenue reached $13.3 billion, matching analyst estimates. GE Aerospace's peers held up better during the session. Honeywell rose 1.6%, and Boeing slipped 0.5%. The decline was specific to GE Aerospace, arriving on the same day the company raised its company-wide profit and cash forecasts for the year. GE Aerospace's Growth Has Lasted More Than A Year Revenue in commercial engines and services, the company's largest segment, grew 21% in fiscal Q3 2026. Management said this marked the unit's sixth consecutive quarter of at least 20% growth. Overall company revenue expanded 21.7% over the four quarters ending in June 2026, compared with 13.0% during the previous four quarters. In fiscal Q3 2026 alone, management said total revenue rose 18%. Future demand looks just as firm. Orders in fiscal Q3 2026 rose 49% from a year earlier. Management now expects 2026 revenue growth of 19% to 20%, lifting its projection from the high teens forecast in July. What Did Management Say About GE Aerospace's 2027? Management expects further services growth in 2027, but no expansion in margins. Helped by a backlog of over $170 billion, the company now projects low double-digit services growth in 2027. Adjusted operating margin was 22.5% in fiscal Q3 2026, up 220 basis points from a year earlier, and management expects 2027 margins to remain in line with 2026. Management cited the GE9X engine as one reason, alongside equipment sales growing faster than services. It expects the GE9X to add about $300 million more in losses in 2027 than in 2026 as deliveries ramp up. GE9X engines shipped during fiscal Q3 2026 will only count in financial results after the engine's upgraded mid-seal is certified. Management is working to secure that FAA certification by the end of 2026. Management said it will provide fuller 2027 guidance in January. GE Aerospace's 2027 operating margin forecast, due with the report expected in January 2027, is the figure to watch. Your Advisor Retired? Get A Second Opinion Before You Settle One report just changed how GE Aerospace looks to the people who own it. When the advisor who built your plan moves on, it is a natural moment to ask whether the plan still fits the life you have now. Our partner advisory firm offers a free review of your holdings, fees and income plan. Get A Free Second Opinion Spot an error or want more like this? Tell us in 10 seconds.

VANCOUVER, BC, Oct. 23, 2026 /PRNewswire/ -- Stock Preachers News Commentary - Stocks closed a volatile earnings week with a split verdict: the Dow gained 0.64% and the Russell 2000 jumped 2.07%, while the Nasdaq Composite fell 0.45% and the S&P 500 slipped 0.22%. The VIX rose to 19.40 and the VXN climbed to 28.13 as traders weighed a wave of third-quarter results. Gold dropped 3.47% and silver fell 4.90% on the week, while WTI crude rose 3.74% on Thursday alone. The 10-year Treasury yield eased 11 basis points to 4.99%. Active Companies from around the markets with current developments this week include: Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA). Large-cap benchmarks diverged sharply this week. The Dow closed at 52,337.54, up 0.64% for the week despite a 1% drop on Friday, while the S&P 500 ended at 7,642.22, down 0.22% weekly after touching a week high of 7,770.40. The Nasdaq Composite settled at 26,022.45, down 0.45% on the week, dragged by a rough stretch for megacap tech following a batch of earnings reports. The Russell 2000 was the standout, closing at 2,777.63 for a 2.07% weekly gain, outperforming its large-cap peers as investors rotated toward smaller names. RSI readings show the Nasdaq at 38.9 and the S&P 500 at 43.5, both in cooler territory, while the Dow's RSI of 54.1 reflects its relative strength this week. Volatility ticked higher into the weekend, with the VIX up 0.96 points for the week to 19.40 and the VXN up a full point to 28.13. In commodities, natural gas spiked 8.66% on Thursday alone even as it remained down 0.65% for the week, while copper rose 2.44% daily. The dollar firmed slightly against the euro, with EUR/USD down 0.24% on the week to 1.12. The full report also breaks down key support and resistance levels for each index, additional earnings movers, and sentiment heading into next week's sessions. CONTINUED... Read this and more news for Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA) at: https://stockpreachers.com/articles/small-caps-lead-big-tech-lags-as-earnings-season-shakes-the-tape/ In other industry developments and happenings in the market this week include: Meta Platforms, Inc. (Nasdaq: META) Meta reported third-quarter revenue of $64.60 billion, up 26% year over year, but net income of $9.86 billion reflected a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health and social media litigation. Diluted EPS was $3.83, up 265% year over year; excluding the litigation charge, EPS would have been $7.40. Operating margin fell to 20% from 40% a year earlier, while costs and expenses rose 68% to $51.61 billion. Capital expenditures, including finance lease payments, totaled $34.91 billion, and free cash flow was negative $2.12 billion for the quarter. "We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model," said Mark Zuckerberg, Meta founder and CEO. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board." The company guided fourth-quarter revenue to a range of $73-76 billion and raised full-year 2026 total expense guidance to $175-179 billion. Read the release. Texas Instruments Incorporated (Nasdaq: TXN) Texas Instruments reported third-quarter revenue of $6.06 billion, up 28% from a year earlier, with net income of $2.43 billion and earnings per share of $2.62. Operating profit rose 73% to $2.87 billion, and revenue increased 11% sequentially. "Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center," said Haviv Ilan, TI's chairman, president and CEO. Trailing 12-month cash flow from operations was $9.9 billion, with free cash flow of $8.4 billion. The company returned $5.8 billion to shareholders over the trailing 12 months and guided fourth-quarter revenue to a range of $5.80 billion to $6.30 billion, with earnings per share expected between $2.45 and $2.79. Read the release. RTX (NYSE: RTX) RTX reported third-quarter sales of $25.0 billion, up 11% versus the prior year and 12% organically, with adjusted EPS of $2.26, up 33% from a year earlier. GAAP EPS was $1.89. Operating cash flow was $2.9 billion and free cash flow was $2.1 billion, with results including $0.25 of IEEPA cost recovery per share. The company's backlog reached a record $340 billion, including $176 billion commercial and $164 billion defense, after over $81 billion of new awards including Tomahawk and AMRAAM multi-year production contracts. "Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth across commercial aerospace and defense," said RTX Chairman and CEO Chris Calio. The company raised its full-year adjusted EPS outlook to $7.65-$7.75 and adjusted sales guidance to $97.0-$97.5 billion. Read the release. IBM (NYSE: IBM) IBM reported third-quarter revenue of $17.1 billion, up 5% as reported and 6% at constant currency, with Software revenue up 8% and Infrastructure revenue up 4%. GAAP diluted earnings per share were $2.31, up 26% year over year, while operating (non-GAAP) EPS was $2.95, up 11%. The company generated $4.0 billion in net cash from operating activities in the quarter and $3.0 billion in free cash flow, up $0.7 billion year over year. Year to date, free cash flow reached $7.8 billion. "Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow," said Arvind Krishna, IBM chairman, president and chief executive officer. IBM now expects full-year free cash flow to increase by more than $1 billion year over year, while continuing to guide constant currency revenue growth of four to five percent. Read the release. First Citizens BancShares, Inc. (Nasdaq: FCNCA) First Citizens BancShares reported third-quarter net income of $606 million, down from $672 million in the linked quarter. Net income available to common stockholders was $577 million, or $51.23 per common share, a $63 million decrease from the prior quarter's $640 million. Net interest income rose to $1.70 billion, up $43 million from the linked quarter, while net interest margin declined 3 basis points to 3.07%. The company completed its BMO Branch Acquisition on September 4, 2026, assuming approximately $4.9 billion in deposits and acquiring approximately $650 million in loans. "We returned $600 million to our stockholders through share repurchases and further optimized our balance sheet by repaying another $8.0 billion of the Purchase Money Note," said Chairman and CEO Frank B. Holding, Jr. The board approved a new repurchase plan authorizing up to $1.2 billion of Class A common shares through 2027. Read the release. Contact Information: https://stockpreachers.com Media Contact: [email protected] DISCLAIMER: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a market commentary and is not a paid advertisement. This article is being distributed by Stock Preachers, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. This is an independent market commentary published on a non-paid basis. MEL has not been paid any fee by any company mentioned in this article for its production or distribution, and MEL has no advertising or digital media agreement with any company mentioned in this article. The companies mentioned have not reviewed or approved this article. 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References to the companies named in this article are provided solely as market and sector context and as summaries of each company's own public news releases. No partnership, affiliation, or endorsement is implied, and nothing in this article is a recommendation to buy, sell, or hold any security. Quotations attributed to company executives are reproduced from those companies' own news releases. Forward-Looking Statements: This article may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements made by the companies mentioned in their own news releases. Such statements involve risks and uncertainties, and actual results may differ materially. Readers should review each company's filings with the SEC and applicable Canadian securities regulators. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article. Eagle Eye is not a broker-dealer, and nothing it provides is investment advice. Data may be delayed. Always do your own research. View original content to download multimedia:https://www.prnewswire.com/news-releases/dow-and-small-caps-climb-weekly-while-nasdaq-slips-on-megacap-earnings-charges-302918459.html View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2026/23/c0679.html

The Q3 earnings season continues its rapid pace, with several companies, including Valero Energy VLO, RTX RTX, and Interactive Brokers IBKR delivering record-breaking results while also sporting favorable Zacks Ranks. Valero Energy, one of the largest independent petroleum refiners, delivered a highly positive release, benefiting significantly from the favorable refining environment. Adjusted earnings totaled $23.90 per share, comfortably exceeding the Zacks Consensus EPS estimate of $21.23 and climbing more than 550% YoY. Revenues of roughly $46.1 billion also exceeded the Zacks Consensus estimate of $38.8 billion, reflecting a beat of nearly 19%. VLO posted record quarterly profit, with net income reaching $6.8 billion compared to $1.1 billion in the year-ago period. Refining operating income soared to $8.8 billion from $1.6 billion, reflecting a sizable improvement in margins. Valero also saw record quarterly ethanol production of 4.8 million gallons per day, with its refineries operating at near-record utilization rates. The stock sports a favorable Zacks Rank #1 (Strong Buy), with its earnings outlook benefiting heavily from positive revisions over recent months. Image Source: Zacks Investment Research RTX, a leading aerospace and defense company and current Zacks Rank #2 (Buy), delivered strong quarterly results,with adjusted earnings of $2.26 per share exceeding the Zacks Consensus EPS estimate of $1.78 by nearly 27% and climbing 33% YoY. Revenues of $24.5 billion similarly exceeded the $24.0 billion consensus estimate by 4%, reflecting 11% YoY growth. RTX exited the period with a record $340 billion backlog, including $176 billion from commercial aerospace and $164 billion from defense. The impressive backlog provides strong revenue visibility, undoubtedly a major positive for investors. EPS revisions for its current and next fiscal year remain on a positive trajectory, suggesting growth rates of 17% for FY26 and 6.7% in FY27. Image Source: Zacks Investment Research Interactive Brokers, an automated global electronic brokerage firm, delivered another solid quarter, benefiting from continued account growth and higher trading activity. Adjusted earnings of $0.67 per share matched the Zacks Consensus estimate, climbing 17.5% YoY. Revenues of $1.9 billion exceeded the $1.8 billion consensus estimate by 1.9%, reflecting 16.3% YoY growth. Importantly, customer accounts reached a record 5.58 million, climbing 35% YoY. Customer equity similarly grew 27% to nearly $965 billion, while net interest income increased 19% to roughly $1.2 billion. The company also raised its quarterly dividend by more than 70%, reflecting a strong commitment to increasingly rewarding shareholders. IBKR sports a favorable Zacks Rank #2 (Buy), with annual EPS estimates continuing to remain on a bullish trajectory. Image Source: Zacks Investment Research Bottom Line The Q3 earnings season continues to deliver impressive results, with Valero Energy VLO, RTX RTX, and Interactive Brokers IBKR all posting quarterly records. In addition to reporting quarterly records, all three sport favorable Zacks Ranks, reflecting positive earnings outlooks and providing a constructive near-term backdrop for shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Dynamics (NYSE: GD) is scheduled to report earnings on Friday, October 30, 2026. The company has a market value of about $93.1 billion. Over the last twelve months, it generated $54.9 billion in revenue and $5.7 billion in operating profit, with net income of $4.5 billion. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks General Dynamics' Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 20 earnings releases in the last five years, with 9 positive and 11 negative one-day (1D) returns. Positive 1D returns were seen 45% of the time. - Over the last three years that share falls to 42%, across 12 releases. - The median of the 9 positive 1D returns is 2.7%, and the median of the 11 negative ones is -3.3%. - The largest one-day reactions were 8.0% and -4.2%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/29/2026 | -3.1% | -1.9% | -2.8% 4/29/2026 | 8.0% | 11.3% | 11.2% 1/28/2026 | -2.7% | -3.1% | -4.3% 10/24/2025 | 2.7% | 0.9% | -0.3% 7/23/2025 | 6.5% | 5.7% | 6.7% 4/23/2025 | -3.3% | -1.0% | 1.1% 1/29/2025 | -4.2% | -2.0% | -4.2% 10/23/2024 | -0.5% | -1.4% | -8.5% 7/24/2024 | -3.3% | -0.5% | -0.1% 4/24/2024 | -4.0% | -1.9% | 1.8% 1/24/2024 | 4.7% | 7.7% | 9.2% 10/25/2023 | 4.0% | 3.6% | 6.2% 7/26/2023 | 2.2% | 3.4% | 3.1% 4/26/2023 | -3.6% | -4.4% | -7.3% 1/25/2023 | -3.6% | -1.0% | -1.7% 10/26/2022 | -0.02% | 1.7% | 2.7% 7/27/2022 | 1.0% | 4.3% | 7.7% 4/27/2022 | 1.3% | -1.5% | -7.1% 1/26/2022 | -0.5% | 3.4% | 6.1% 10/27/2021 | 0.6% | -1.4% | -2.8% Statistic | 1D | 5D | 21D # Positive | 9 | 9 | 10 # Negative | 11 | 11 | 10 Median Positive | 2.7% | 3.6% | 6.1% Median Negative | -3.3% | -1.5% | -3.5% Max Positive | 8.0% | 11.3% | 11.2% Max Negative | -4.2% | -4.4% | -8.5% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. None of these correlations are strong enough to trade on: all are below 0.40 in absolute terms over five years, so the early post-earnings move has not reliably predicted what followed. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | -0.15 | -0.02 | 0.27 3 Years | -0.35 | -0.04 | 0.09 Does A Peer That Reports First Offer A Clue? RTX usually reports a day or a few days before General Dynamics. It reported this season on October 20, 2026, and its one-day reaction was a 0.6% gain. The table compares RTX's one-day reaction to its earnings with General Dynamics' one-day reaction to its subsequent report. It covers the 19 quarters in which RTX reported first; in July 2024 RTX reported a day later. The correlation is -0.06, close to zero, so RTX's reaction has not foreshadowed General Dynamics' in either direction. GD Earnings Date | GD 1D | RTX 1D 7/29/2026 | -3.1% | 7.3% 4/29/2026 | 8.0% | -4.4% 1/28/2026 | -2.7% | 3.7% 10/24/2025 | 2.7% | 7.7% 7/23/2025 | 6.5% | -1.6% 4/23/2025 | -3.3% | -9.8% 1/29/2025 | -4.2% | 2.6% 10/23/2024 | -0.5% | -0.3% 4/24/2024 | -4.0% | -0.2% 1/24/2024 | 4.7% | 5.3% 10/25/2023 | 4.0% | 7.2% 7/26/2023 | 2.2% | -10.2% 4/26/2023 | -3.6% | -1.3% 1/25/2023 | -3.6% | 3.3% 10/26/2022 | -0.02% | -1.5% 7/27/2022 | 1.0% | -4.6% 4/27/2022 | 1.3% | -0.4% 1/26/2022 | -0.5% | 2.5% 10/27/2021 | 0.6% | -2.3% Correlation | - | -0.06 An earnings release can move one stock sharply in either direction. A diversified portfolio spreads that risk. The Trefis High Quality (HQ) Portfolio holds about 30 quality businesses, rebalanced with rules, and has a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

- Interested in Ryder System, Inc.? Here are five stocks we like better. - Ryder delivered strong third-quarter growth: Comparable EPS rose 21% to $4.33, revenue increased 6% to $2.8 billion, and free cash flow nearly doubled to $992 million. - Fleet Management improved significantly, supported by higher rental utilization, pricing gains and stronger used-vehicle markets. Tractor pricing rose 19% year over year, while inventory fell to 7,300 vehicles. - Ryder raised its 2026 outlook, increasing comparable EPS guidance to $14.85–$15.05 and lifting expected freight-cycle benefits to approximately $40 million, while maintaining its $2.4 billion capital-expenditure forecast. - Are RTX Corporation and Northrop Grumman Ready to Break Out? Ryder System (NYSE:R) reported third-quarter results that included a 21% increase in comparable earnings per share, citing strategic initiatives, contractual revenue growth and improving conditions in used vehicle sales and commercial rental. Comparable EPS from continuing operations rose to $4.33, while total operating revenue increased 6% year over year to $2.8 billion, according to Chief Financial Officer Cristy Gallo-Aquino. Free cash flow rose to $992 million from $496 million in the prior-year period, reflecting lower capital expenditures year to date. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - MarketBeat Week in Review – 10/12 - 10/16 "The Ryder team delivered our eighth consecutive quarter of comparable earnings per share growth," CEO John Diez said. He attributed the results to execution on the company's strategy, as well as stronger used-vehicle and rental performance. Fleet Management Solutions operating revenue increased 5%, while earnings before taxes rose 21% to $177 million. The segment benefited from strategic initiatives in ChoiceLease, improving used-vehicle sales and stronger rental performance. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - RTX Locks In a Decade of Defense Dominance Commercial rental utilization reached 77%, up 700 basis points from a year earlier, despite a 12% smaller average fleet. Rental pricing increased 4% year over year. Ryder said tractor demand was particularly strong, and it expects rental utilization to remain near third-quarter levels in the fourth quarter. Fleet Management Solutions' EBT margin reached 13.2% of operating revenue, which management said was in line with its long-term low-teens target. Tom Havens, president of Fleet Management Solutions, said the quarter marked the first time since the fourth quarter of 2022 that lease, SelectCare and rental each posted year-over-year revenue growth. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Used-vehicle pricing also improved. Tractor pricing rose 19% from a year earlier and 15% sequentially, while truck pricing increased 5% year over year and 6% sequentially. Ryder sold 5,100 used vehicles during the quarter, up 200 units from a year earlier, and reduced used-vehicle inventory to 7,300 units, near the low end of its target range. The retail channel accounted for 61% of used-vehicle sales volume, compared with 54% a year earlier. Havens said the shift toward retail sales contributed to tractor pricing performance; excluding the retail-wholesale mix change, tractor pricing would likely have risen in the high- to low-double-digit percentage range. Supply Chain Solutions operating revenue increased 9%, driven by new business, higher volumes and pricing. The gains were partially offset by lost automotive business. Segment EBT increased 7% from the prior year, aided by higher e-commerce fulfillment and Ryder Last Mile volumes, though productivity from new business ramp-ups and lower automotive results limited gains. The Supply Chain Solutions EBT margin was 8.1%, at the company's long-term high-single-digit target. Steve Sensing, president of Supply Chain Solutions and Dedicated Transportation Solutions, said Ryder's supply-chain pipeline showed growth opportunities in consumer packaged goods, industrial, healthcare and retail. Dedicated Transportation Solutions revenue declined 1%, primarily because of a lower year-over-year fleet count, though pricing partially offset the decline. Sequentially, the power fleet increased by 100 units as net sales activity improved. Segment EBT declined from the prior year, reflecting lower revenue and a prior-year workers' compensation insurance benefit. Diez said Ryder's dedicated business is primarily specialized, with 70% to 80% involving specialized operations or private-fleet conversions. The company said it has contractual wage-inflation provisions and driver-wage indices designed to help recover rising labor costs. Sensing said Ryder is seeing mid-single-digit driver wage increases in certain regions, rather than broad nationwide pressure. Ryder maintained its full-year capital expenditure forecast of $2.4 billion. The company reduced its forecast for lease capital expenditures to $1.7 billion, reflecting the timing of lease sales, while increasing its rental capital expenditure forecast to $500 million, up $300 million from its previous estimate. The rental investment is intended to position Ryder for expected demand growth in 2027. Ryder expects its ending rental fleet to increase 8% sequentially in the fourth quarter and approximately 10% during the second half of 2026. Management said the rental fleet remains below peak levels even after the planned investment. The company expects approximately $500 million of used-vehicle sale proceeds in 2026 and net capital expenditures of about $1.9 billion. Ryder ended the quarter with leverage of 2.42 times, slightly below its stated target range of 2.5 to 3 times. Gallo-Aquino said Ryder expects to generate about $10.5 billion from operating cash flow and used-vehicle sale proceeds over three years, creating an estimated $3.5 billion of additional debt capacity. After estimated replacement capital spending and dividends, the company expects roughly $4.5 billion of flexible deployment capacity for growth capital expenditures, share repurchases, acquisitions and investments. Ryder raised its full-year 2026 comparable EPS outlook to a range of $14.85 to $15.05, from its prior range of $14.40 to $14.80. The company cited stronger-than-expected third-quarter performance and expected fourth-quarter benefits from used-vehicle sales and rental conditions. - Full-year return on equity outlook increased to 18% to 19%. - Free cash flow guidance remained $700 million to $800 million. - Fourth-quarter comparable EPS is expected to range from $4.25 to $4.45, compared with $3.59 in the prior-year quarter. Management expects more than $70 million in benefits during 2026 from a multiyear strategic-initiative program launched in 2024. Ryder said it had generated approximately $100 million in benefits during 2024 and 2025 and expects total benefits exceeding $170 million by the end of 2026. The company also increased its forecast for freight-cycle upturn benefits in 2026 to about $40 million, from $20 million previously. Diez said the additional benefit is being driven primarily by stronger used-vehicle sales, with a smaller contribution from rental improvement. Ryder estimates that benefits from a broader cycle recovery could eventually exceed $250 million, largely from rental and used-vehicle sales, as freight conditions develop. Ryder System, Inc is a transportation and logistics company that provides fleet management, supply chain and dedicated transportation services. Founded in 1933 by James Ryder and headquartered in Miami, Florida, the company serves businesses that rely on commercial vehicles, transportation networks and logistics infrastructure. Through its Fleet Management Solutions business, Ryder offers full-service leasing, commercial vehicle rental, maintenance, fleet support and related services for trucks, tractors, trailers and other vehicles. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Ryder System (R) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- GE beat analyst estimates for the eighth straight quarter, with EPS up 36%, orders surging 49%, and a $170 billion backlog. - The FAA certified the Boeing 737 MAX 10, and the LEAP is its exclusive engine, meaning 1,400+ orders directly expand GE's installed base. - GE's 7.5% one-month decline lands exactly at Jim Cramer's 8% threshold where a pullback turns from opportunity to warning sign. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) GE Aerospace (NYSE:GE) reported a beat-and-raise third quarter on Tuesday, October 20, and the stock has fallen since. Shares traded at $294.73 in premarket trading on October 22, 2026. They are down 4.0% over the past week and 7.5% over the past month. The stock has also gained 366.1% over the past half-decade, and that run may already reflect a lot of the optimism about the business. Adjusted EPS came in at $2.25, up 36% from a year earlier. Revenue reached $14.118 billion, up 18%. GE beat analyst estimates for the eighth quarter in a row. Total orders rose 49%, and commercial services orders climbed 23%. The backlog now tops $170 billion. CFO Rahul Ghai said GE raised its 2026 EPS guidance to $8.00 to $8.10. Ghai also lifted free cash flow guidance to $9.1 billion to $9.4 billion. Chair and CEO Larry Culp described the demand picture on the earnings call: Given airframer order books are full through the end of the decade, along with strong growth in aftermarket and defense, we are continuing to invest to ensure timely delivery for our customers. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ On October 20, the FAA certified the 737-10, the largest jet in the MAX family of Boeing (NYSE:BA). The hosts of The Investor's Podcast point out that the LEAP is the only engine on the MAX family. That means every MAX delivery adds to GE's installed base and to its future service revenue. Transportation Secretary Sean Duffy said, "This has been almost a ten-year process getting to this day of certification, which by the way, is huge." Henry Epp of Marketplace Morning Report said, "major airlines have ordered more than 1,400 of them." GE has also agreed to supply more than 300 LEAP-1B engines for Turkish Airlines' MAX fleet. However, GE also said on the call that it now assumes fewer GE9X engines for Boeing this year. The company is working toward FAA certification of an upgraded mid-seal by the end of 2026. RTX (NYSE:RTX) has Pratt & Whitney, which competes with GE's LEAP to power Airbus's main narrow-body jet family. RTX CEO Chris Calio said on October 20, "There's the concern around jet fuel and airline health and pricing, but the demand is still there. We've seen that in our parts and repairs orders." Ghai made a similar point on GE's call: "Even with strong revenue growth, spare parts delinquency (backlog of unfilled parts orders) increased sequentially, reflecting strong underlying demand." On an episode of The Investor's Podcast, the hosts made the bull case around a razor-and-blade model: each engine earns back about 3.5 times its original revenue in services, services account for more than 70% of revenue, and the services segment earns a 27% margin while new engines sell at roughly breakeven. The hosts added, "On the planes that matter most, GE has roughly three quarters of the market." The bear case rests on strength and operating leverage. The podcast hosts said some LEAP engines needed their first overhaul after a year and a half instead of the expected five years. They also noted that in 2020, GE Aviation revenue fell 33% and profit fell 82%. GE's CEO spoke to the strength question on the call: "That's why we were so pleased to see the LEAP AOG number down to near zero since the summertime." AOG means aircraft on ground, or grounded planes. The Investor's Podcast hosts ended on valuation: "Only if you stay in the 35 to 40 times earnings range will you still be able to get a good return on GE Aerospace. The exit multiple is basically everything here." Jim Cramer described a framework on Mad Money on October 21: "The New High List is not a shopping list. It's an inspiration list." He said the ideal pullback is 5% to 8%, while a drop of more than 8% suggests something may be going wrong. GE's one-month fall totals 7.5%, right at the edge of that range. (We put ten rules for buying strong stocks on pullbacks in a free guide here: The Breakout Buyer's Rulebook.) Upcoming milestones include the GE9X mid-seal certification and GE's full 2027 guidance, due in January. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

NEW YORK, Oct. 21, 2026 /PRNewswire/ -- Equity Insider News Commentary - Three of the largest names in U.S. aerospace and defense reported third-quarter results on Tuesday, and all three raised their full-year guidance. Two of them reported record backlogs, including a $340 billion order book at one contractor that counts $164 billion of defense work. The reports open a busy stretch for the sector, with two more major contractors scheduled to report over the next eight days, and they land against a backdrop of rising defense commitments from NATO allies and a record U.S. budget request, even as Washington operates on a stopgap funding bill. Active Companies from around the markets with current developments this week include: RTX Corporation (NYSE: RTX), Northrop Grumman Corporation (NYSE: NOC), GE Aerospace (NYSE: GE), Lockheed Martin Corporation (NYSE: LMT), L3Harris Technologies, Inc. (NYSE: LHX). The spending story starts with the targets governments have set. At the 2025 NATO Summit in The Hague, Allies committed to investing 5% of GDP annually on defence by 2035, with at least 3.5% of GDP going to core defence requirements. In Washington, the president's fiscal year 2027 budget request came in at $1.5 trillion, which the Pentagon described in April as the largest request in history, and it seeks funding to expand production capacity and build stockpiles for Patriot, Terminal High Altitude Area Defense and precision strike missiles, among other weapons. A request is not an appropriation. For now, the government is funded by a continuing resolution signed on September 2 that runs through December 11, and according to the Congressional Research Service, the measure bars the Department of Defense from using that funding to accelerate production rates above those sustained with fiscal year 2026 funds. That puts more weight on the contracts companies already hold, and on the backlogs those contracts build, as this earnings season unfolds. Investors did not treat Tuesday's three reports the same way. Northrop Grumman shares rose 4.57% to $534.00 and RTX gained 0.64% to $193.34, while GE Aerospace fell 3.67% to $299.87 even after raising its guidance, according to Stock Analysis data. A raised forecast does not guarantee a higher share price, and the chart can show how investors are leaning before the next headline lands. Readers who want to learn to read those signals can get the free Knowledge is Power guide from Stock Preachers at equity-insider.com/. In other industry developments and happenings in the market this week include: RTX Corporation (NYSE: RTX) RTX reported third-quarter sales of $25.0 billion, up 11% from a year earlier and up 12% organically, and adjusted EPS of $2.26, up 33%, a figure that includes $0.25 from IEEPA cost recovery. Its backlog reached $340 billion, including $164 billion of defense, and during the quarter it was awarded Tomahawk and AMRAAM multi-year undefinitized production contracts. RTX raised its 2026 outlook for adjusted sales to $97.0 billion to $97.5 billion, up from $95.0 billion to $96.0 billion, and for adjusted EPS to $7.65 to $7.75, up from $7.10 to $7.25. "Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," said RTX Chairman and CEO Chris Calio. Northrop Grumman Corporation (NYSE: NOC) Northrop Grumman reported third-quarter sales of $11.1 billion, up 7%, and diluted EPS of $7.89. Net awards totaled $16.4 billion for a book-to-bill ratio of 1.5x, and backlog totaled $109.6 billion. The company raised its 2026 guidance for MTM-adjusted EPS to $29.35 to $29.75, from $28.60 to $29.10, and for segment operating income to $4.94 billion to $5.04 billion, from $4.85 billion to $5.00 billion. "In a complex world with the growing need for solutions that scale and perform, our customers continue to turn to Northrop Grumman, and we are delivering with urgency and innovation," said Kathy Warden, chair, chief executive officer and president of Northrop Grumman. GE Aerospace (NYSE: GE) GE Aerospace reported third-quarter total orders of $19.0 billion, up 49%, adjusted revenue of $13.3 billion, up 18%, and adjusted EPS of $2.25, up 36%. Its Defense & Propulsion Technologies segment booked orders of $4.3 billion, up 18%, on revenue of $3.5 billion, up 7%, and signed a contract worth up to $2.9 billion to provide ongoing support for the F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets. The company raised its 2026 guidance for adjusted EPS to $8.00 to $8.10, from $7.65 to $7.85, and for free cash flow to $9.1 billion to $9.4 billion, from $8.9 billion to $9.2 billion. "We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%," said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. Lockheed Martin Corporation (NYSE: LMT) Lockheed Martin will publish its third-quarter results before the market opens on Thursday, October 22, followed by a webcast at 8:30 a.m. ET. In its second-quarter report in July, the company posted a record backlog of $230 billion, inclusive of the multi-year contract to produce THAAD interceptors, and raised its 2026 outlook for sales to approximately $79.75 billion to $81.75 billion, from $77.5 billion to $80.0 billion, and for diluted EPS to approximately $29.95 to $30.65, from $29.35 to $30.25. "We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance," Lockheed Martin Chairman, President and CEO Jim Taiclet said in July. L3Harris Technologies, Inc. (NYSE: LHX) L3Harris will release its third-quarter results before the market opens on Thursday, October 29, with an earnings call at 10:30 a.m. ET. In its second-quarter report in July, the company posted orders of $7.3 billion and a book-to-bill of 1.2x that increased backlog to a record $42 billion, and it raised its 2026 guidance for revenue to $23.2 billion to $23.7 billion, from $23 billion to $23.5 billion, and for EPS to $11.80 to $12.00, from $11.40 to $11.60. "Our purpose-built portfolio and focus on execution drove outstanding second quarter results," said Christopher Kubasik, Chairman and CEO of L3Harris, in July. Defense stocks moved in both directions on Tuesday's reports, and two more contractors are still to come. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at equity-insider.com/. Contact Information: equity-insider.com Media Contact: [email protected] DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is not a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is independent news commentary. Equity Insider is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Daily price changes are from the October 19, 2026 close to the October 20, 2026 close based on Stock Analysis data. Company guidance, backlog figures and scheduled reporting dates are as stated by the companies and may change. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland. 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RTX just cleared another psychological test. After releasing Q3 2026 earnings, the stock closed at US$193.34, only 0.6% higher on the day, even as the company reported adjusted sales of US$25.0b and adjusted earnings per share of US$2.26. The headline story is margin power. Adjusted segment operating profit reached US$3.9b with roughly 310 basis points of segment margin expansion, yet the share price barely budged. Traders treated this like a routine quarter, while the income statement pointed to a material profitability step up that long term holders will be weighing very carefully. If you like RTX's margin story and want more companies that combine strong profitability with balance sheet resilience, screen for that same combination across our list of solid balance sheet and fundamentals stocks (25 results) - Revenue (Q3 2026 vs. Q3 2025): US$24,965m vs. US$22,478m (up 11.1%) - Net Income, excluding extra items (Q3 2026 vs. Q3 2025): US$2,583m vs. US$1,918m (up 34.7%) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.91 vs. US$1.43 (up 33.8%) - Net Profit Margin, trailing 12 months (Q3 2026 vs. prior year): 8.8% vs. 7.7% (higher margin level) Earnings tell part of RTX's story, while the cash that actually comes through the door often drives how investors think about what NYSE:RTX is worth. If you focus on RTX's cash flows rather than headline profit figures, the stock could be a narrow 13% undervalued. RTX bulls argue that the real engine here is long term contract conversion and aftermarket leverage rather than one off quarters. "Analysts expect RTX to continue converting its large defense and commercial aerospace backlog into higher sales and margins across its core segments, as long-term contracts and guidance updates move through the income statement." Q3 shows that idea in motion. Adjusted sales reached US$25.0b with 12% organic growth and segment profit climbed to US$3.9b. Backlog stepped up to US$340b, helped by Tomahawk, AMRAAM, SM 3 and SM 6 awards. Management lifted full year sales, EPS and free cash flow guidance, which points to backlog turning into revenue rather than sitting idle. There is also a clear worry that RTX spends heavily yet fails to turn bigger factories into fatter cash flows. "RTX plans to commit about US$10b to US$10.5b in 2026 to engineering and development and capital expenditure. If these large outlays do not translate into timely capacity gains or revenue, the result could be lower free cash flow and less improvement in net margins than investors currently expect." Out of the gate, returns on that spend look mixed. Segment margins expanded about 310 bps, but around half of that came from IEEPA recoveries rather than pure productivity. Free cash flow of US$2.1b in Q3 and raised full year guidance to US$9.0b to US$9.2b relies meaningfully on the same IEEPA tailwind, which means the capex story still has to prove itself on a clean run rate. One Narrative disagrees with today's price. → See where this Narrative says RTX should trade. RTX just reported stronger profitability even though the share price barely moved. The real opportunity is finding stocks where operations may not yet be reflected in valuations. - Company 1 - 31% below our estimate - uses a fast growing super app client base to expand secured credit and deepen engagement. - Company 2 - 32% below our estimate - sells GPU systems that data center operators order when scaling power hungry AI racks. - Company 3 - 33% below our estimate - builds high horsepower engine capacity aimed at long term data center power contracts. Three companies from the same screener. Open every one of the 34 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RTX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

RTX Corporation (NYSE:RTX) is increasingly capitalizing on strong demand for aircraft replacement parts, repairs, and avionics upgrades. Higher production volumes for narrow-body and wide-body aircraft, along with demand for new engines, also support its long-term prospects. RTX recently made it to our list of best aerospace dividend stocks to buy. Find out which other stocks made the list. While the stock is down about 1% for the year, it is much better than the S&P 500 aerospace and defense sector's 9% loss. The relative strength reflects investor confidence in increasing demand for aftermarket services and equipment. The Pratt & Whitney segment, which manufactures commercial and military aircraft engines, posted 16% sales growth in the second quarter to $8.89 billion, with adjusted profit up 22% and an operating margin of 8.3%. The performance highlights the company's ability to capitalize on demand for aircraft engines and related maintenance services. It has already announced a $25 million investment plan to expand manufacturing in Poland in response to the growth. Ruslans Golenkovs/Shutterstock.com Collins Aerospace, which supplies avionics, flight controls, and aircraft interiors, achieved 8% sales growth as profit grew 10% and operating margin totaled 16.7%. The impressive results suggest the company's growth is no longer solely dependent on new aircraft deliveries. Instead, maintenance repairs and replacement parts have emerged as key growth drivers. Following its October 20 third-quarter results, RTX raised its 2026 adjusted sales guidance to $97 billion–$97.5 billion and adjusted EPS outlook to $7.65–$7.75, with organic sales growth expected at 10%–11%. RTX's strong performance across engine manufacturing and aftermarket services highlights the importance of scale, recurring revenue, and operational execution in the aerospace industry. Investors comparing opportunities in this space may also want to weigh its growth prospects and valuation against those of GE Aerospace (GE) vs. RTX (RTX): Which Is the Better Stock to Buy? for a closer comparison. Despite the impressive performance, RTX stock has pulled back significantly, down about 37% a share from all-time highs. Nevertheless, the correction has come amid concerns that the stock is trading at a significant premium, even though it is backed by a large order backlog of over $200 billion. At a price-to-earnings multiple of 33x, it trades well above the sector median of 20x. The stock also trades at a much higher sales multiple, with a price-to-sales ratio of 2.78x compared to the sector average of 1.77x. These elevated multiples indicate that investors are paying a substantial premium for RTX's business quality, growth prospects, and relatively resilient revenue streams. The company's order backlog of more than $200 billion provides meaningful visibility into future demand, but converting that backlog into profitable sales and free cash flow remains essential. RTX Corporation (NYSE:RTX) has already shown it can generate cash, with free cash flow rising to $2.88 billion in the second quarter, up from negative $72 million in the same quarter last year. Cash flow for the first half of the year also improved to $4.18 billion from $720 million a year ago. Strong cash reserves underscore why the company distributes nearly half of its earnings as dividends. With a dividend yield of about 1.56%, the stock suits investors seeking dividend income and long-term growth, given its long payout record. Its quarterly payout has increased from $0.63 a share in early last year to $0.73 a share, translating to an annual rate of $2.92 a share. Strong demand for commercial aircraft engines and aftermarket services ensures the company generates significant recurring cash flow to sustain the payouts. Meanwhile, institutional positioning around the stock remains constructive, though the number of hedge funds holding stakes dropped to 92 in the second quarter from 95 in the first quarter. Fisher Asset Management increased its stake by 3% to $4.34 million, while Point72 Asset Management increased by 62% to $625.75 million. The stock also boasts a low short interest of 1.01% despite the number of shares held short increasing to 13.65 million as of September 30 from 12.34 million as of August 31. RTX Corporation (NYSE:RTX)'s aerospace business is showing strong operating momentum, backed by stronger margins and faster sales growth. Improving free cash flow also strengthens its ability to support dividends and invest in future growth. However, the stock's valuation remains a significant consideration. Sustaining that premium will require continued revenue growth, stronger profitability, and consistent free cash flow generation. While we acknowledge the risk and potential of RTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RTX and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: AstraZeneca (AZN) Seeks FDA Approval for New Lung Cancer Treatment. Can It Fuel Oncology Growth? and Should You Buy Oracle (ORCL) Amid Project Jupiter and Negative Cash Flow Concerns? Disclosure: None. Follow Insider Monkey on Google News.

RTX Corporation RTX highlighted robust defense demand, accelerating commercial aerospace activity and improving operational efficiency during its third-quarter 2026 earnings call. Management raised its full-year outlook for adjusted sales, earnings and free cash flow, reflecting stronger performance across its businesses. The discussion centered on the company's record backlog, expanding missile production capacity, GTF engine maintenance operations and prospects for margin expansion in 2027. Executives also addressed supply-chain bottlenecks, airline cost pressures and the timing of future defense contract revenues. RTX reported third-quarter 2026 adjusted earnings of $2.26 per share, which outpaced the Zacks Consensus Estimate of $1.78 by 26.97%. Earnings increased 33% year over year. Revenues of $24.97 billion exceeded the Zacks Consensus Estimate of $24.01 billion by approximately 4%. The top line increased 11% year over year, supported by strength across commercial aerospace and defense. RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote Chief financial officer Neil Mitchill raised the company's 2026 adjusted sales outlook to $97-$97.5 billion from the previous projection of $95-$96 billion. Organic sales growth is now expected to be 10-11% compared with the earlier estimate of 8-9%. Adjusted earnings guidance increased to $7.65-$7.75 per share from $7.10-$7.25. Management attributed the upward revision to improved operating performance and approximately 25 cents per share of recovery under the International Emergency Economic Powers Act (IEEPA). RTX also increased its free cash flow forecast to $9-$9.2 billion from $8.5-$8.75 billion. Mitchill expects continued revenue and earnings growth in 2027, accompanied by operational margin expansion and strong cash generation. However, management deferred detailed 2027 financial guidance until the fourth-quarter earnings call in January. RTX ended the third quarter with a record backlog of $340 billion, representing 36% year-over-year growth. The company secured nearly $59 billion in defense awards, including approximately $23 billion for Tomahawk missiles and more than $14 billion for AMRAAM systems. During the analyst Q&A, CEO Christopher Calio discussed approximately $70 billion in combined multiyear munitions contracts, which provide Raytheon with demand visibility extending nearly a decade. These contracts could support a twofold to fourfold increase in production rates. Management expects revenues from the agreements to increase in 2027 and accelerate over the following years, with full-rate production potentially continuing through 2030. Mitchill explained that revenues would be recognized as costs are incurred during capacity expansion and production. Higher volumes and improved manufacturing efficiencies could also support long-term margin expansion at Raytheon. Commercial aftermarket demand remained strong despite concerns about higher airline fuel costs and potential reductions in flight activity. RTX reported 16% organic commercial aftermarket sales growth during the quarter. Pratt & Whitney's commercial aftermarket sales increased 21%, primarily reflecting higher GTF maintenance, repair and overhaul volumes. PW1100 engine MRO output rose more than 35% year over year. Responding to an analyst's question about airline cost pressures, Calio emphasized that aftermarket demand remained resilient. He identified increasing out-of-warranty flight hours, pricing opportunities and a growing installed engine base as important long-term growth drivers. Management expects low-double-digit growth in GTF shop visits during 2027 and beyond. Continued expansion in maintenance activity could support aftermarket revenues and improve cash flow generation. Pratt & Whitney generated adjusted operating profit of $968 million, increasing 29% year over year. Growth reflected higher commercial aftermarket volumes and approximately $160 million in IEEPA recovery. During the Q&A, management identified the GTF Advantage engine and Hot Section Plus upgrade as important contributors to future profitability. The first GTF Advantage-powered aircraft entered service in October, while Hot Section Plus upgrades are expected to enter maintenance operations in early 2027. Mitchill reiterated Pratt & Whitney's longer-term potential to achieve low- to mid-teens operating margins, supported by higher aftermarket volumes and improvements in engine durability. He also expects Pratt & Whitney to contribute positively to RTX's free cash flow over the next three years as additional engine shop visits generate customer payments. However, changes in commercial engine mix, maintenance expenses and the pace of technology upgrades could influence the timing of margin improvement. Collins Aerospace reported adjusted operating profit of $1.79 billion, up 50% year over year. Adjusted operating margin expanded 560 basis points to 21.3%, including approximately 300 basis points of IEEPA recovery. Higher commercial aircraft production, favorable aftermarket mix and ongoing cost-reduction initiatives contributed to profitability. During the analyst Q&A, Mitchill acknowledged that Collins' fourth-quarter operating margin could moderate as the company increases research and development spending and digital investments. The absence of recurring IEEPA recoveries will also affect sequential profitability. Nevertheless, Calio emphasized that Collins remains in the early stages of its structural cost-reduction program. Operational consolidation, lower overhead expenses and increased manufacturing activity at cost-efficient locations are expected to support additional margin improvement in 2027. RTX continues to face supply-chain challenges as it prepares to increase defense production substantially. During the earnings call, analysts highlighted shortages of printed circuit boards, capacitors, resistors and other electronic components, partly reflecting competing demand from artificial intelligence infrastructure development. Calio acknowledged these constraints and emphasized the importance of qualifying additional suppliers, streamlining testing requirements and securing critical materials. Raytheon added 150 suppliers in 2025, while RTX continues investing in manufacturing capacity and partnerships with solid rocket motor producers. The company also faces potential working capital pressures as production volumes increase. Mitchill indicated that higher inventory requirements could partially offset operating cash flow improvements in 2027. RTX's third-quarter earnings call underscored favorable demand trends across commercial aerospace and defense. Its record backlog, increasing GTF aftermarket activity and structural cost initiatives provide opportunities for sustained revenue growth and operational margin improvement. However, supply-chain limitations, defense budget uncertainty and higher production-related investments remain important challenges. Additionally, the nonrecurring IEEPA recoveries that supported 2026 profitability could create year-over-year earnings comparison pressures in 2027. RTX currently carries a Zacks Rank #2 (Buy). Its Value, Growth, Momentum and VGM Scores are C, B, C and B, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The company's ability to translate its substantial backlog into profitable production, sustain aftermarket growth and improve cash conversion will be central to its financial performance over the coming years. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Northrop Grumman (NOC) and RTX (RTX) raised their full-year adjusted earnings outlook amid record order backlogs as the defense contractors' third-quarter results grew year on year. Northrop now expects adjusted earnings per share of $29.35 to $29.75, up from its prior guidance of $28.60 to $29.10. The company maintained its revenue projection of $43.75 billion to $44.25 billion for 2026. The FactSet-polled consensus puts full-year EPS at $28.93 on revenue of $44.07 billion. "We are exceeding our own expectations and increasing our 2026 guidance for segment operating income, margin rate, and earnings per share," Chief Executive Kathy Warden said during an earnings call, according to a FactSet transcript. "We expect to drive that momentum into 2027 as we ramp B-21 testing and production, advance Sentinel, continue our leadership in national security space, and meet increased demand for missile and munitions production." B-21 Raider will be the world's first sixth-generation stealth bomber. Sentinel is an intercontinental ballistic missile program. The defense contractor sees 2027 sales expanding 5% to 7%, with growth acceleration slated for 2028, Chief Financial Officer John Greene said on the call. Analysts expect 6.8% and 6.1% growth rates in 2027 and 2028, respectively. For the September quarter, Northrop's EPS rose to $7.89 from $7.67 a year earlier, exceeding the FactSet-polled consensus of $7.19. Total sales increased 7% to $11.12 billion, while the Street expected $11.15 billion. Northrop's aeronautics and defense system segments posted double-digit percentage revenue growth year-over-year in the third quarter, while mission systems and space systems each rose 2%. The company's backlog grew to a record $110 billion, Warden said. Shares of Northrop jumped 5% in Tuesday trade, but have fallen 5.9% so far this year. Separately, RTX said it now projects 2026 adjusted EPS of $7.65 to $7.75, up from the previous $7.10 to $7.25 range. Full-year adjusted sales are now pegged at $97 billion to $97.5 billion, compared with the prior outlook of $95 billion to $96 billion. Analysts in a FactSet survey are looking for non-GAAP EPS of $7.26 and sales of $96.29 billion. "Based on our performance to date, we're again raising our full-year outlook for adjusted sales, EPS, and free cash flow," CEO Chris Calio said during an earnings conference call, according to a FactSet transcript. RTX reported adjusted EPS of $2.26 for the quarter ended Sept. 30, up from $1.70 in the prior-year quarter and surpassing the consensus of $1.78. Sales jumped 11% to $24.97 billion, while the Street projected $24.11 billion. Sales rose by double-digit percentages across RTX's three main divisions -- Raytheon, Pratt & Whitney, and Collins Aerospace. The company's backlog surged 36% annually to reach a record $340 billion. "Our record backlog provides clear visibility to our sales expectations in the fourth quarter and throughout next year," Calio told analysts. "So our focus remains squarely on execution." Shares of RTX fell 0.7% intraday Tuesday, taking year-to-date gains to 4%. Last week, Morgan Stanley said that US aerospace and defense companies' results will likely show solid underlying demand. Lockheed Martin (LMT) is scheduled to report third-quarter earnings on Thursday.