RTX (RTX) AI Stock Analysis

• Market Cap: $229.41B
• Dividend Yield: 1.56%
• Average Volume (3M): 4.08M
• Price to Earnings (P/E): 35.1
• 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: 4,378,424
• 30 Day Avg. Volume: 4,078,239
• 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: 1.15
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 15.25
• Enterprise Value/Ebitda: 17.90
• 1Y Price Target: $195.29
• Price Target Upside: 14.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.21
• Revenue Forecast (FY): $86.96B

• Rating: 76 Outperform
• Price Target: $193.00 ▲(12.80% Upside)

RTX's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust growth, profitability, and strategic investments position it well for future success. However, the high P/E ratio and mixed technical indicators suggest caution. The cybersecurity incident is noted but not expected to have a lasting impact.

Positive Factors

Strong Revenue Growth

The robust 13% organic sales growth indicates strong demand across multiple segments, suggesting a solid market position and potential for sustained revenue expansion.

Record Backlog

A record backlog of $251 billion provides visibility into future revenues and indicates strong demand, supporting long-term growth and stability.

Strategic Capacity Expansion

Significant investment in capacity expansion enhances production capabilities, supporting future growth and competitive positioning in key markets.

Negative Factors

Tariff Headwinds

Tariff-related costs negatively impact margins, posing a challenge to profitability and potentially affecting long-term financial performance.

Negative Engine Margin

Ongoing negative engine margins at Pratt & Whitney could strain profitability, affecting overall financial health and requiring strategic adjustments.

Supply Chain Challenges

Persistent supply chain issues could disrupt production and delivery schedules, impacting revenue and operational efficiency in the long term.

RTX Business Overview & Revenue Model

Company Description

RTX, formerly known as Raytheon Technologies Corporation, is a multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. The company operates in four primary sectors: Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. RTX specializes in advanced technology solutions for both commercial and military applications, providing products such as aircraft engines, avionics, missiles, and cybersecurity systems.

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 demonstrates strong financial health with consistent revenue and profit growth, robust cash flow generation, and efficient capital management. Despite high leverage, the company maintains a stable equity position and continues to improve profitability metrics.

Income Statement

RTX has shown a strong growth trajectory with revenue growth from $56.59B in 2020 to $83.60B in the TTM period, reflecting a solid upward trend. The gross profit margin is at a respectable level, indicating efficient cost management. EBIT and EBITDA margins have improved over time, demonstrating enhanced operational efficiency. The net profit margin also shows positive growth, underlining increased profitability.

Balance Sheet

RTX maintains a healthy equity ratio, suggesting a stable financial position. However, the debt-to-equity ratio is relatively high, which could imply potential leverage risk. Despite this, the return on equity has shown improvement, indicating effective use of shareholder funds to generate profit.

Cash Flow

The company has demonstrated robust operating cash flow generation, which covers net income comfortably, highlighting strong cash conversion capabilities. Free cash flow has seen growth, although it has fluctuated over the years. The free cash flow to net income ratio is healthy, supporting the company's ability to generate cash after accounting for capital expenditures.

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: 171.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 171.1 is below the 20-day moving average (MA) of 173.16, above the 50-day MA of 170.33, and above the 200-day MA of 147.74, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, 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	$91.11B	21.86	17.78%	1.73%	11.86%	17.39%
RTX	76 Outperform	$229.41B	35.13	10.49%	1.56%	8.79%	39.63%
NOC	75 Outperform	$78.35B	19.71	26.15%	1.64%	-0.14%	72.35%
GE	73 Outperform	$299.50B	37.86	42.74%	0.48%	-19.21%	31.83%
LMT	70 Outperform	$104.64B	25.24	62.78%	2.95%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	47 Neutral	$153.46B	―	―	―	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.