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RTX
(NYSE:RTX)
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Rating:70Outperform
Price Target:
$215.00
▲(2.24% Upside)
Action:Reiterated
Date:09/16/26
RTX scores well on fundamentals and outlook: improving profitability, strong (and improving) free cash flow, reduced debt, and a clearly upgraded company outlook with record backlog from the latest earnings call. Offsetting these strengths, near-term technical momentum is bearish and valuation is relatively rich (P/E ~34), which tempers the overall score despite the constructive business trajectory.
Positive Factors
Recurring aftermarket model
RTX benefits from a large installed base that supports recurring lifecycle revenue after initial equipment sales. Long-duration maintenance, parts and upgrade demand can improve revenue visibility, deepen customer relationships, and make the business less dependent on new-production cycles over the next several quarters.
Negative Factors
Moderate leverage remains
Debt reduction has improved RTX’s balance sheet, but leverage remains moderate rather than low. If earnings soften or major program charges return, interest obligations and the company’s large asset base could reduce financial flexibility, constrain capital allocation, and make further operational recovery more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket model
RTX benefits from a large installed base that supports recurring lifecycle revenue after initial equipment sales. Long-duration maintenance, parts and upgrade demand can improve revenue visibility, deepen customer relationships, and make the business less dependent on new-production cycles over the next several quarters.
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
$261.36B
Dividend Yield1.45%
Average Volume (3M)3.86M
Price to Earnings (P/E)33.7
Beta (1Y)0.73
Revenue Growth11.84%
EPS Growth24.93%
CountryUS
Employees180,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.75
Shares Outstanding1,347,758,200
10 Day Avg. Volume4,064,745
30 Day Avg. Volume3,855,269
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 Cap1.11
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit15.31
Enterprise Value/Ebitda18.12
Forecast
1Y Price Target
$230.00Price Target Upside9.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)7.26
Revenue Forecast (FY)$96.27B
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 makes money primarily by selling aerospace and defense products and by providing long-duration maintenance, repair, overhaul, and upgrade services tied to large installed bases of equipment.
1) Segment-driven revenue streams
- Collins Aerospa...
RTX Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call conveyed a decidedly positive tone: strong organic revenue growth, record backlog, substantial defense and commercial bookings, margin expansion, operational improvements (notably at Pratt MRO and Raytheon production), and an upgraded full-year outlook for sales, EPS and free cash flow. Near-term headwinds include OE mix pressure at Pratt, working capital/inventory builds to support higher production, some one-time costs and tariff/SG&A pressures, and the fact that key framework agreements are not yet in backlog. On balance the financial results, upgraded guidance, large backlog and clear operational progress outweigh the challenges.Positive Updates
Strong Top-Line Growth and Raised Outlook
Adjusted sales of $24.7B in Q2, up 16% organically (14% on adjusted basis). Company raised full-year adjusted sales guidance by $2.5B to $95.0B–$96.0B, implying organic sales growth of 8%–9% (up from prior 5%–6%).
Negative Updates
Pratt Commercial OE Weakness and Mix Pressure
Pratt commercial OE sales declined 8% in Q2 and full-year OE now expected to be down low single digits. Management cited mix shifts and allocation of material to support higher aftermarket/MRO throughput as drivers of the OE revenue weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth and Raised Outlook
Adjusted sales of $24.7B in Q2, up 16% organically (14% on adjusted basis). Company raised full-year adjusted sales guidance by $2.5B to $95.0B–$96.0B, implying organic sales growth of 8%–9% (up from prior 5%–6%).
Read all positive updates
Company Guidance
RTX raised its full-year guidance, increasing adjusted sales by $2.5 billion to $95.0–$96.0 billion (implying 8–9% organic growth vs. prior 5–6%), with commercial OE now expected to grow mid‑ to high‑single digits, commercial aftermarket low‑double digits, and defense high‑single digits; adjusted EPS was raised by $0.40/$0.35 to $7.10–$7.25 (with roughly $0.26 of the midpoint increase from higher segment operating profit) and free cash flow was lifted to $8.5–$8.75 billion (from $8.25–$8.75B). Segment outlooks were upgraded: Collins sales now mid‑ to high‑single digit (organic high‑single to low‑double) with operating profit up $550–$625M vs. 2025 (prior $425–$525M); Pratt sales now expected to grow high‑single digit (adjusted and organic) with operating profit up $275–$350M (prior $225–$325M); and Raytheon sales are now forecast to grow high‑single to low‑double digits with operating profit up $575–$650M (vs. prior $275–$375M).RTX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.50B | 88.60B | 80.74B | 68.92B | 67.07B | 64.39B |
| Gross Profit | 19.02B | 17.79B | 15.41B | 12.09B | 13.67B | 12.49B |
| EBITDA | 16.07B | 14.95B | 12.53B | 9.70B | 11.53B | 11.00B |
| Net Income | 7.74B | 6.73B | 4.77B | 3.19B | 5.20B | 3.86B |
Balance Sheet | ||||||
| Total Assets | 173.97B | 171.08B | 162.86B | 161.87B | 158.86B | 161.40B |
| Cash, Cash Equivalents and Short-Term Investments | 8.30B | 7.43B | 5.58B | 6.59B | 6.22B | 7.83B |
| Total Debt | 38.86B | 39.51B | 42.89B | 45.24B | 33.50B | 33.14B |
| Total Liabilities | 105.83B | 103.94B | 100.90B | 100.42B | 84.65B | 86.70B |
| Stockholders Equity | 66.38B | 65.25B | 60.16B | 59.80B | 72.63B | 73.07B |
Cash Flow | ||||||
| Free Cash Flow | 11.31B | 7.94B | 4.53B | 4.72B | 4.39B | 4.75B |
| Operating Cash Flow | 14.21B | 10.57B | 7.16B | 7.88B | 7.17B | 7.07B |
| Investing Cash Flow | -1.63B | -1.26B | -1.53B | -3.04B | -2.83B | -1.36B |
| Financing Cash Flow | -8.99B | -7.49B | -6.62B | -4.53B | -5.86B | -6.68B |
RTX Technical Analysis
Neutral
210.28
Price Trends
200.06
Negative
196.66
Negative
194.04
Negative
Market Momentum
-2.88
Negative
56.25
Neutral
86.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RTX, the sentiment is Neutral. The current price of 210.28 is above the 20-day moving average (MA) of 187.03, above the 50-day MA of 200.06, and above the 200-day MA of 194.04, indicating a neutral trend. The MACD of -2.88 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $93.13B | 20.70 | 17.43% | 1.82% | 9.13% | 10.37% | |
74 Outperform | $73.85B | 16.48 | 26.58% | 1.84% | 5.90% | 16.00% | |
70 Outperform | $261.36B | 33.73 | 11.79% | 1.45% | 11.84% | 24.93% | |
70 Outperform | $127.42B | 20.26 | 86.24% | 2.50% | 7.20% | 52.79% | |
69 Neutral | $325.62B | 36.83 | 49.03% | 0.56% | 21.69% | 18.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $150.34B | 71.24 | 104.83% | 2.40% | 24.78% | ― |
* Industrials Sector Average
RTX
RTX
193.92
35.56
22.46%
BA
Boeing
190.21
-26.61
-12.27%
GD
General Dynamics
344.23
13.03
3.94%
GE
GE Aerospace
313.83
12.77
4.24%
LMT
Lockheed Martin
552.09
58.93
11.95%
NOC
Northrop Grumman
519.86
-72.48
-12.24%
RTX Corporate Events
Business Operations and StrategyExecutive/Board Changes
RTX Announces New Leadership at Pratt & Whitney
Positive
Sep 15, 2026
On September 15, 2026, RTX announced that Shane Eddy will step down as president of Pratt Whitney on January 1, 2027, and retire from the company at the end of the first quarter of 2027, while remaining as a special advisor through March 2027 to ...
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.