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Raytheon Technologies RTX Standard Product Warranty Accrual

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Other financials

Income statement

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Revenue$24.7B+14.5%
Operating income$2.8B+31.0%
Net income$2.1B+29.1%
EPS (diluted)$1.57+28.7%

Balance sheet

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Cash & equivalents$8.4B+73.9%
Total debt$38.9B-10.9%
Total equity$66.4B+6.4%
Total assets$173.97B+4.1%

Cash flow

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Operating cash flow$3.5B+674%
CapEx$669.0M+26.2%
Free cash flow$2.9B

Valuation

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Market cap$300.89B+44.3%
Enterprise value$331.35B+34.0%
P/E38.9×+5.0×
P/S3.2×+0.7×

Profitability

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Gross margin48.1%
Operating margin11.2%+1.3pp
Net margin8.3%+0.9pp
FCF margin12.2%+8.3pp

Returns & leverage

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Return on equity12%+1.9pp
Debt / equity0.6×-0.1×
Current ratio0.0×

Where this comes from

Reported directly by Raytheon Technologies in its filing.

Tagged under the XBRL concept us-gaap:ProductWarrantyAccrual.

The source filing: Raytheon Technologies’s 10-Q, filed July 23, 2026.

Filed
Jul 23, 2026, 4:49 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000101829-26-000027
(dollars in millions)20262025
Balance as of January 1$1,035$993
Warranties and performance guarantees issued118152
Settlements(113)(108)
Other(3)7
Balance as of June 30$1,037$1,044

Item 1. Unaudited Financial Statements:

FAQ

What is Raytheon Technologies's standard product warranty accrual?
Raytheon Technologies (RTX) reported standard product warranty accrual of $1.04B in Q2 2026.
How has Raytheon Technologies's standard product warranty accrual changed year-over-year?
Raytheon Technologies's standard product warranty accrual decreased by 0.7% year-over-year, from $1.04B to $1.04B.
What is the long-term trend for Raytheon Technologies's standard product warranty accrual?
Over 5 years (2020 to 2025), Raytheon Technologies's standard product warranty accrual has grown at a -0.4% compound annual growth rate (CAGR), from $1.06B to $1.04B.
What does standard product warranty accrual mean?
This represents the estimated liability for repair or replacement costs associated with products under warranty. It is calculated based on historical failure rates and expected costs to fulfill warranty obligations. This metric is a key indicator of product quality and potential future cash outflows.

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