RTX is trading lower in the session following its April 21, 2026 first-quarter results. While the company topped expectations on revenue and adjusted EPS, the market reaction has been negative as investors digest the forward setup—especially what the updated 2026 outlook implies for upside versus consensus and the durability of free cash flow.

For Q1 2026, RTX reported sales of about $22.1 billion and adjusted EPS of $1.78, both ahead of Wall Street expectations. Management also raised its full-year 2026 outlook for adjusted sales and adjusted EPS, but kept free cash flow expectations unchanged, which is a key focal point for investors given the company’s multi-year cash needs and the embedded execution assumptions. (zacks.com)

The selloff appears driven by a classic ‘beat but not enough’ dynamic: expectations were elevated, and investors are prioritizing the quality of guidance and the cash conversion story over the headline beat. With the stock having rallied strongly into 2026, the unchanged free-cash-flow range is being read as conservative relative to the bullish narrative, encouraging profit-taking and a reset in near-term positioning. (zacks.com)

RTX remains exposed to investor sensitivity around Pratt & Whitney’s geared turbofan (GTF) situation, which has required accelerated engine removals and inspections through 2026 and has previously been framed as a multi-year profit and cash headwind. Even when quarterly results beat, any sign that cash-flow improvement is back-end loaded can rekindle concerns about the timing of costs, shop capacity, and customer compensation dynamics. (investors.rtx.com)