RTX (RTX), the aerospace and defense company formerly known as Raytheon, saw its stock price rise Tuesday after reporting fourth-quarter results that surpassed Wall Street expectations. The company posted adjusted earnings of $1.55 per share, topping the $1.47 predicted by analysts. Revenue reached $24.2 billion, a 12% increase from the previous year, driven by strong demand for aircraft engines and missile systems.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Calio Focuses on Expanding Production Capacity
The CEO manages a business that is currently balancing two booming markets. On the commercial side, Pratt & Whitney and Collins Aerospace are seeing a huge surge in demand as airlines repair old planes and buy new engines. On the defense side, the Raytheon division is rushing to fill orders for missiles and defense sensors. Calio states that the company remains focused on “investing in new capabilities” and “expanding production capacity” to keep up.
To handle this load, RTX has started digitally connecting its factories. Currently, more than half of its annual manufacturing hours are managed through these new digital systems, which help the company spot delays before they happen. This push for efficiency is vital as the company aims for $92 billion to $93 billion in adjusted sales for 2026.
Munitions Output Increases amid Political Scrutiny
The defense sector has recently faced intense pressure from the White House. President Donald Trump signed an executive order on January 7, 2026, titled “Prioritizing the Warfighter in Defense Contracting.” This order warns defense companies that they could lose the right to buy back their own stock or pay dividends if they fail to deliver weapons on time.
In response to these criticisms, RTX highlighted that it increased its munitions output by 20% last year. Analyst Robert Stallard noted that this production boost is a clear sign that the company is taking the government’s “peace through strength” mandate seriously. By showing that it can move faster, RTX hopes to avoid the financial penalties mentioned in the new executive order.
Investors React to RTX’s Upbeat 2026 Guidance
Shareholders pushed the stock higher because the company’s 2026 outlook was stronger than many expected. RTX expects to earn between $6.60 and $6.80 per share this year. This forecast matches the high end of what Wall Street analysts were hoping for.
While the company faces risks from higher tariffs on aluminum and steel, which cost the firm roughly $600 million in 2025, the sheer volume of orders seems to be outweighing these costs. As long as the company can keep its delivery schedules on track, the “great momentum” mentioned by the CEO looks likely to continue.
Is RTX a Good Stock to Buy Now?
RTX stock has a consensus Moderate Buy rating among 10 Wall Street analysts. This rating is based on six Buy and four Hold recommendations issued in the past three months. The average 12-month RTX price target of $203.89 implies 2.8% upside from current levels.
