RTX Stock Drops Despite a Q1 Beat & Guidance Increase

RTX (RTX) stock was a hot topic among traders on Tuesday following the release of the aerospace and defense company’s latest earnings report. The company’s report started with adjusted earnings per share of $1.78, which was better than the $1.51 that Wall Street expected. It also represented a 21% increase year-over-year.

RTX also reported revenue of $22.1 billion, which came in above analysts’ estimates of $21.46 billion for the quarter. Investors will also note that the company’s revenue grew 9% year-over-year. The company said that its strong Q1 revenue was due to the company completing deliveries in its backlog.

RTX stock was down nearly 1% on Tuesday, but was still up 6.14% year-to-date. The stock has also rallied 72.12% over the past 12 months.

RTX Updates 2026 Guidance

RTX also updated its 2026 guidance in its latest earnings report. The company now expects:

• Adjusted sales of $92.5 billion to $93.5 billion, up from $92.0 billion to $93.0 billion.
• Organic sales growth of 5% to 6%.
• Adjusted EPS of $6.70 to $6.90, up from $6.60 to $6.80.
• Confirmed free cash flow of $8.25 billion to $8.75 billion.

RTX chairman and CEO Chris Calio, said, “Our differentiated products across RTX are well positioned to support our customers’ needs and we’re making significant investments to increase output and accelerate the fielding of new capabilities. Given our first quarter performance and the strength we’re seeing in our defense business, we are increasing adjusted sales and EPS in our full year outlook.”

Is RTX Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for RTX is Moderate Buy, based on 11 Buy and four Hold ratings over the past three months. With that comes an average RTX stock price target of $222.77, representing a potential 15.09% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.