RTX · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

RTX Corp · 2026-07-23 · Importance 39 · Surprise 22

RTX’s effective tax rate was 18.0% for the quarter ended June 30, 2026, versus 15.4% in the prior-year quarter, primarily because the 2025 quarter included an IRS examination benefit and a larger stock-compensation benefit. For the six months, the 2026 rate was 16.3% versus 16.2% in 2025. The 2026 outlook incorporates a lower forecasted annualized effective tax rate principally from a higher Foreign Derived Deduction Eligible Income benefit under U.S. tax legislation enacted in 2025, plus benefits from legal-entity reorganizations. RTX expects IRS Appeals resolution of protests covering RTX, Rockwell Collins, and Raytheon tax years between 2014 and 2019 within the next 12 to 18 months.

Key facts

• RTX expects resolution at the IRS Appeals Division for protests related to certain tax years within the next twelve to eighteen months. source
• RTX Corp states the six months ended June 30, 2026 includes a lower forecasted annualized effective tax rate for 2026 principally due to a higher Foreign Derived Deduction Eligible Income benefit resulting from the U.S. tax legislation enacted in 2025. source
• Effective tax rate for the quarter ended June 30, 2026 was 18.0% and for the six months ended June 30, 2026 was 16.3%; for the quarter and six months ended June 30, 2025 the rates were 15.4% and 16.2%, respectively. source
• The effective income tax rate was 18.0% for the quarter ended June 30, 2026 and 15.4% for the quarter ended June 30, 2025. source