RTX (RTX) AI Stock Analysis

• Market Cap: $249.89B
• Dividend Yield: 1.44%
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.64
• Revenue Growth: 8.79%
• EPS Growth: 39.63%
• Country: US
• Employees: 185,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.70
• Shares Outstanding: 1,340,772,000
• 10 Day Avg. Volume: 5,367,347
• 30 Day Avg. Volume: 4,632,483
• PEG Ratio: 0.54
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 34.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 15.25
• Enterprise Value/Ebitda: 17.90
• 1Y Price Target: $195.36
• Price Target Upside: 5.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 6.21
• Revenue Forecast (FY): $86.95B

• Rating: 74 Outperform
• Price Target: $192.00 ▲(3.69% Upside)

RTX's overall stock score is driven by strong financial performance and positive earnings call guidance, which are slightly offset by technical analysis indicators and high valuation concerns. The company's strategic growth initiatives and robust backlog provide a solid foundation for future growth, despite some operational challenges.

Positive Factors

Strategic Collaboration

This collaboration enhances RTX's capabilities in space technology, leveraging AWS's AI and machine learning, which could lead to improved efficiency and expanded market opportunities in national security sectors.

Strong Cash Flow

Robust cash flow generation supports RTX's ability to invest in growth opportunities, manage debt, and return value to shareholders, underpinning long-term financial health.

Record Backlog

A growing backlog indicates strong demand for RTX's products and services, providing revenue visibility and stability, which supports future growth and operational planning.

Negative Factors

Tariff Headwinds

Tariff-related costs can pressure margins and profitability, potentially impacting RTX's competitive position and financial performance if not mitigated.

Supply Chain Challenges

Supply chain disruptions can hinder RTX's ability to meet production targets, affecting delivery schedules and customer satisfaction, which may impact long-term growth.

Negative Engine Margin

Sustained negative margins in key segments like Pratt & Whitney can erode profitability and limit reinvestment capacity, potentially affecting RTX's competitive edge in the aerospace sector.

RTX Business Overview & Revenue Model

Company Description

RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

How the Company Makes Money

RTX generates revenue through a diversified portfolio of products and services across its various sectors. Key revenue streams include the sale of commercial and military aircraft engines through Pratt & Whitney, which provides maintenance services and spare parts as ongoing revenue. Collins Aerospace contributes significantly through avionics, landing systems, and connectivity solutions for commercial aircraft. Additionally, the defense segment, including Raytheon Intelligence & Space and Raytheon Missiles & Defense, earns revenue from government contracts for advanced defense systems and technologies. RTX also benefits from long-term contracts and partnerships with government entities and commercial airlines, ensuring a steady stream of income. The company invests in research and development to innovate and enhance its offerings, further solidifying its market position and revenue potential.

RTX Financial Statement Overview

Summary

RTX exhibits a strong financial position with robust growth and profitability in the income statement, a well-managed capital structure with moderate leverage in the balance sheet, and excellent cash generation capabilities. These factors indicate a healthy financial performance.

Income Statement

RTX has demonstrated strong revenue growth with a 2.86% increase in TTM, supported by improving margins. The gross profit margin stands at 20.13%, and the net profit margin is 7.67%, indicating solid profitability. EBIT and EBITDA margins are also robust at 12.08% and 17.15%, respectively. These metrics reflect a healthy income statement with consistent growth and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.63, suggesting manageable leverage. Return on equity is healthy at 10.61%, indicating efficient use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. Overall, the balance sheet is strong, with a good balance between debt and equity.

Cash Flow

RTX's cash flow performance is impressive, with a significant free cash flow growth rate of 71.48% in TTM. The operating cash flow to net income ratio is 0.15, and the free cash flow to net income ratio is 0.66, indicating strong cash generation relative to net income. These metrics highlight the company's ability to generate cash efficiently, supporting its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.99B	80.74B	68.92B	67.07B	64.36B	56.67B
Gross Profit	17.31B	15.41B	12.09B	13.67B	12.50B	9.01B
EBITDA	14.75B	12.16B	9.37B	11.17B	10.56B	2.95B
Net Income	6.59B	4.77B	3.19B	5.20B	3.86B	-3.52B
Balance Sheet
Total Assets	168.67B	162.86B	161.87B	158.86B	161.40B	162.15B
Cash, Cash Equivalents and Short-Term Investments	5.97B	5.58B	6.59B	6.22B	7.83B	8.80B
Total Debt	40.71B	42.89B	45.24B	33.50B	33.14B	33.34B
Total Liabilities	102.28B	100.90B	100.42B	84.65B	86.70B	88.27B
Stockholders Equity	64.51B	60.16B	59.80B	72.63B	73.07B	72.16B
Cash Flow
Free Cash Flow	5.24B	4.53B	4.72B	4.39B	4.75B	1.64B
Operating Cash Flow	7.96B	7.16B	7.88B	7.17B	7.07B	3.61B
Investing Cash Flow	-1.50B	-1.53B	-3.04B	-2.83B	-1.36B	3.10B
Financing Cash Flow	-7.20B	-6.62B	-4.53B	-5.86B	-6.68B	-5.27B

RTX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 185.17 is above the 20-day moving average (MA) of 176.97, above the 50-day MA of 174.92, and above the 200-day MA of 151.44, indicating a bullish trend. The MACD of 3.46 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RTX.

RTX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$93.30B	22.38	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$83.11B	20.90	26.15%	1.55%	-0.14%	72.35%
RTX	74 Outperform	$249.89B	38.27	10.49%	1.44%	8.79%	39.63%
GE	72 Outperform	$334.11B	42.23	42.74%	0.48%	-19.21%	31.83%
LMT	70 Outperform	$112.40B	27.12	62.78%	2.77%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$170.83B	-15.82	―	―	10.19%	-6.03%

RTX Corporate Events

RTX Initiates $2.5 Billion Pension Buy-Out

On November 7, 2025, RTX Corporation initiated a buy-out conversion of a group annuity contract from The Prudential Insurance Company of America, transferring approximately $2.5 billion of pension obligations. This transaction, affecting around 60,000 retirees and beneficiaries, will not change their benefits and maintains the Plan’s funded status, while RTX anticipates a one-time, non-cash pretax pension settlement charge of about $300 million in Q4 2025.

RTX Faces Cybersecurity Incident Affecting Airline Software

On September 19, 2025, RTX Corporation experienced a ransomware cybersecurity incident affecting its Multi-User System Environment (MUSE) software, which is used by multiple airlines for check-in and gate resource sharing at airports. Although the incident led to flight delays and cancellations as customers switched to backup processes, RTX’s investigation suggests it will not materially impact the company’s financial condition or operations.