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RTX
(NYSE:RTX)
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Rating:68Neutral
Price Target:
$217.00
▲(10.48% Upside)
Action:Reiterated
Date:05/05/26
The score is driven primarily by solid underlying financial performance and a constructive earnings update (raised outlook, record backlog, and operational progress). These positives are tempered by weak technical momentum (below major moving averages with negative MACD) and a higher valuation multiple with only a modest dividend yield.
Positive Factors
Record backlog and multi‑year awards
A $271B record backlog and multi-year government and commercial awards provide durable revenue visibility and multi-year program tailwinds. This reduces near-term cyclicality, supports long-run production and sustainment revenue, and underpins predictable cash flows and planning.
Negative Factors
Tariff costs and refund uncertainty
Significant tariff payments create a structural margin headwind until resolved; absent recognized refunds, reported profitability and cash are reduced. Continued tariff exposure increases forecasting risk and may permanently depress segment margins if duties remain or are replaced by other trade measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and multi‑year awards
A $271B record backlog and multi-year government and commercial awards provide durable revenue visibility and multi-year program tailwinds. This reduces near-term cyclicality, supports long-run production and sustainment revenue, and underpins predictable cash flows and planning.
Read all positive factors
RTX Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to total sales, indicating areas of strength and potential growth or diversification opportunities.
Shows how much each business unit contributes to total sales, indicating areas of strength and potential growth or diversification opportunities.
Data provided by:
The Fly
The FlyRTX (RTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$268.33B
Dividend Yield1.44%
Average Volume (3M)5.87M
Price to Earnings (P/E)36.8
Beta (1Y)0.66
Revenue Growth10.56%
EPS Growth56.63%
CountryUS
Employees185,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.41
Shares Outstanding1,346,683,500
10 Day Avg. Volume6,184,440
30 Day Avg. Volume5,868,911
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)3.77
Price to Sales (P/S)2.78
P/FCF Ratio30.98
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit15.96
Enterprise Value/Ebitda18.89
Forecast
1Y Price Target
$218.82Price Target Upside11.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.95
Revenue Forecast (FY)$94.18B
RTX Business Overview & Revenue Model
Company Description
RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both wit...
How the Company Makes Money
RTX generates revenue primarily from (1) product sales and (2) services/aftermarket support, with a large portion tied to long-duration programs. Collins Aerospace earns revenue by selling aerospace systems and components to airframe manufacturers...
RTX Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call was largely positive: RTX reported strong top‑ and bottom‑line results, meaningful margin expansion, record backlog and robust defense and commercial demand, and raised full‑year sales and EPS guidance while maintaining free cash flow targets. Operational execution milestones (GTF progress, munitions ramp, automation, and targeted capacity investments) support the upward outlook. Notable risks remain—tariff costs and refund uncertainty, negative OE engine margin pressure during the GTF transition, supply‑chain concentration and capacity needs for a large munitions ramp, and potential commercial air‑traffic softness that could affect aftermarket demand—but management articulated plans and investments to mitigate many of these issues. On balance, the highlights outweigh the lowlights.Positive Updates
Strong Top-Line and Profit Growth
Adjusted sales of $22.1B in Q1; organic sales growth ~10% year-over-year (Neil cited 9% adjusted, 10% organic). Adjusted EPS $1.78, up 21% year-over-year. Adjusted segment operating profit grew 14% year-over-year. Free cash flow of $1.3B, up $500M versus Q1 2025.
Negative Updates
Tariffs and Uncertain Refunds
The company paid about $500M related to prior IEEPA tariffs; replacement tariffs (Section 122/232) left net P&L impact roughly unchanged in current view. No income recorded for potential tariff refunds yet; guidance does not assume refunds. Tariffs created headwinds (e.g., Collins ~130 bps, Pratt ~50 bps) that management is mitigating but still impacting margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and Profit Growth
Adjusted sales of $22.1B in Q1; organic sales growth ~10% year-over-year (Neil cited 9% adjusted, 10% organic). Adjusted EPS $1.78, up 21% year-over-year. Adjusted segment operating profit grew 14% year-over-year. Free cash flow of $1.3B, up $500M versus Q1 2025.
Read all positive updates
Company Guidance
RTX raised its full‑year outlook, updating adjusted sales to $92.5–$93.5 billion (up $0.5B) implying ~5–6% organic growth, increasing adjusted EPS to $6.70–$6.90 (up $0.10) and reiterating free cash flow of $8.25–$8.75 billion; channel guidance remains commercial OE mid‑single‑digit, commercial aftermarket high‑single, and defense mid‑ to high‑single‑digit. Segment detail: Collins expects mid‑single‑digit adjusted sales (high‑single‑digit organic) and operating profit up $425–$525M vs. 2025; Pratt & Whitney expects mid‑single‑digit sales (GTF deliveries mid‑ to high‑single‑digit) and operating profit up $225–$325M; Raytheon now expects high‑single‑digit sales growth and operating profit up $275–$375M (Q1 bookings $6.6B, Q1 book‑to‑bill 0.96, rolling 12‑month Raytheon book‑to‑bill 1.48). Management cited a record company backlog of ~$271B (up 25% YoY) and reiterated execution, capacity investment and margin/drop‑through assumptions underpinning the guide.RTX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.37B | 88.60B | 80.74B | 68.92B | 67.07B | 64.39B |
| Gross Profit | 18.27B | 17.79B | 15.41B | 12.09B | 13.67B | 12.49B |
| EBITDA | 15.43B | 14.95B | 12.53B | 9.70B | 11.53B | 11.00B |
| Net Income | 7.26B | 6.73B | 4.77B | 3.19B | 5.20B | 3.86B |
Balance Sheet | ||||||
| Total Assets | 170.43B | 171.08B | 162.86B | 161.87B | 158.86B | 161.40B |
| Cash, Cash Equivalents and Short-Term Investments | 6.82B | 7.43B | 5.58B | 6.59B | 6.22B | 7.83B |
| Total Debt | 38.94B | 39.51B | 42.89B | 45.24B | 33.50B | 33.14B |
| Total Liabilities | 102.40B | 103.94B | 100.90B | 100.42B | 84.65B | 86.70B |
| Stockholders Equity | 66.28B | 65.25B | 60.16B | 59.80B | 72.63B | 73.07B |
Cash Flow | ||||||
| Free Cash Flow | 8.36B | 7.94B | 4.53B | 4.72B | 4.39B | 4.75B |
| Operating Cash Flow | 11.12B | 10.57B | 7.16B | 7.88B | 7.17B | 7.07B |
| Investing Cash Flow | -1.20B | -1.26B | -1.53B | -3.04B | -2.83B | -1.36B |
| Financing Cash Flow | -8.27B | -7.49B | -6.62B | -4.53B | -5.86B | -6.68B |
RTX Technical Analysis
Positive
196.42
Price Trends
179.44
Positive
189.33
Positive
182.75
Positive
Market Momentum
3.47
Negative
68.20
Neutral
81.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RTX, the sentiment is Positive. The current price of 196.42 is above the 20-day moving average (MA) of 185.52, above the 50-day MA of 179.44, and above the 200-day MA of 182.75, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 81.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RTX.
RTX Risk Analysis
RTX disclosed 27 risk factors in its most recent earnings report. RTX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RTX Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $101.02B | 23.19 | 17.41% | 1.73% | 9.35% | 10.49% | |
73 Outperform | $393.88B | 46.32 | 46.39% | 0.48% | 21.75% | 26.48% | |
68 Neutral | $268.33B | 36.83 | 11.23% | 1.44% | 10.56% | 56.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $77.98B | 17.15 | 28.05% | 1.55% | 4.95% | 26.05% | |
59 Neutral | $125.87B | 26.32 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $178.54B | 93.59 | -8723.08% | ― | 32.74% | ― |
* Industrials Sector Average
RTX
RTX
199.25
55.62
38.72%
BA
Boeing
226.49
7.86
3.60%
GD
General Dynamics
373.54
84.00
29.01%
GE
GE Aerospace
377.52
129.82
52.41%
LMT
Lockheed Martin
545.91
89.17
19.52%
NOC
Northrop Grumman
549.01
48.93
9.78%
RTX Corporate Events
Executive/Board ChangesShareholder Meetings
RTX Shareowners Approve Directors, Pay, and Auditor Policies
Positive
May 4, 2026
RTX held its 2026 Annual Meeting of Shareowners on April 30, 2026, with a quorum of more than 1.19 billion shares represented out of approximately 1.35 billion shares outstanding as of the March 3, 2026 record date. Shareowners elected all nominat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.