RTX (RTX)
NYSE:RTX
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RTX
(NYSE:RTX)
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Rating:67Neutral
Price Target:
$212.00
▲(7.93% Upside)
Action:ReiteratedDate:04/21/26
Overall score reflects solid underlying financial performance and a constructive, guidance-raising earnings call with record backlog, partially offset by expensive valuation (high P/E, low yield) and weaker near-term technical momentum (negative MACD and sub-50 RSI).
Positive Factors
Record backlog provides multi-year revenue visibility
A $271B backlog (up 25% YoY) gives durable revenue visibility across commercial and defense programs, smoothing near-term demand cycles. Multi-year contracted work supports production planning, capacity investments and predictable aftermarket and service revenue streams that underpin cash flow.
Negative Factors
Elevated leverage versus pre-pandemic levels
Debt-to-equity around 0.61, while improved from 2023 highs, remains meaningfully above 2021–22 norms. Elevated leverage constrains financial flexibility for large capital projects or M&A, increases interest exposure as rates move, and requires continued strong cash generation to sustain deleveraging without cutting strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog provides multi-year revenue visibility
A $271B backlog (up 25% YoY) gives durable revenue visibility across commercial and defense programs, smoothing near-term demand cycles. Multi-year contracted work supports production planning, capacity investments and predictable aftermarket and service revenue streams that underpin cash flow.
Read all positive factors
RTX (RTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$241.46B
Dividend Yield1.44%
Average Volume (3M)4.38M
Price to Earnings (P/E)31.6
Beta (1Y)0.65
Revenue Growth8.79%
EPS Growth39.63%
CountryUS
Employees185,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.78
Shares Outstanding1,346,683,500
10 Day Avg. Volume3,567,970
30 Day Avg. Volume4,383,478
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 Cap1.12
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit14.75
Enterprise Value/Ebitda19.51
Forecast
1Y Price Target
$223.15Price Target Upside13.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)6.9
Revenue Forecast (FY)$93.95B
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 & Whitne...
How the Company Makes Money
RTX makes money primarily by selling aerospace and defense products and by providing long-term maintenance, repair, overhaul, upgrades, and support services tied to those products.
1) Commercial aerospace equipment sales: Through Collins Aerospac...
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 Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call was largely positive: RTX reported strong top‑ and bottom‑line results, meaningful margin expansion, record backlog and robust defense and commercial demand, and raised full‑year sales and EPS guidance while maintaining free cash flow targets. Operational execution milestones (GTF progress, munitions ramp, automation, and targeted capacity investments) support the upward outlook. Notable risks remain—tariff costs and refund uncertainty, negative OE engine margin pressure during the GTF transition, supply‑chain concentration and capacity needs for a large munitions ramp, and potential commercial air‑traffic softness that could affect aftermarket demand—but management articulated plans and investments to mitigate many of these issues. On balance, the highlights outweigh the lowlights.Positive Updates
Strong Top-Line and Profit Growth
Adjusted sales of $22.1B in Q1; organic sales growth ~10% year-over-year (Neil cited 9% adjusted, 10% organic). Adjusted EPS $1.78, up 21% year-over-year. Adjusted segment operating profit grew 14% year-over-year. Free cash flow of $1.3B, up $500M versus Q1 2025.
Negative Updates
Tariffs and Uncertain Refunds
The company paid about $500M related to prior IEEPA tariffs; replacement tariffs (Section 122/232) left net P&L impact roughly unchanged in current view. No income recorded for potential tariff refunds yet; guidance does not assume refunds. Tariffs created headwinds (e.g., Collins ~130 bps, Pratt ~50 bps) that management is mitigating but still impacting margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and Profit Growth
Adjusted sales of $22.1B in Q1; organic sales growth ~10% year-over-year (Neil cited 9% adjusted, 10% organic). Adjusted EPS $1.78, up 21% year-over-year. Adjusted segment operating profit grew 14% year-over-year. Free cash flow of $1.3B, up $500M versus Q1 2025.
Read all positive updates
Company Guidance
RTX raised its full‑year outlook, updating adjusted sales to $92.5–$93.5 billion (up $0.5B) implying ~5–6% organic growth, increasing adjusted EPS to $6.70–$6.90 (up $0.10) and reiterating free cash flow of $8.25–$8.75 billion; channel guidance remains commercial OE mid‑single‑digit, commercial aftermarket high‑single, and defense mid‑ to high‑single‑digit. Segment detail: Collins expects mid‑single‑digit adjusted sales (high‑single‑digit organic) and operating profit up $425–$525M vs. 2025; Pratt & Whitney expects mid‑single‑digit sales (GTF deliveries mid‑ to high‑single‑digit) and operating profit up $225–$325M; Raytheon now expects high‑single‑digit sales growth and operating profit up $275–$375M (Q1 bookings $6.6B, Q1 book‑to‑bill 0.96, rolling 12‑month Raytheon book‑to‑bill 1.48). Management cited a record company backlog of ~$271B (up 25% YoY) and reiterated execution, capacity investment and margin/drop‑through assumptions underpinning the guide.RTX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.37B | 88.60B | 80.74B | 68.92B | 67.07B | 64.36B |
| Gross Profit | 18.27B | 17.79B | 15.41B | 12.09B | 13.67B | 12.50B |
| EBITDA | 13.81B | 12.89B | 10.67B | 7.36B | 9.14B | 8.93B |
| Net Income | 7.26B | 6.73B | 4.77B | 3.19B | 5.20B | 3.86B |
Balance Sheet | ||||||
| Total Assets | 170.43B | 171.08B | 162.86B | 161.87B | 158.86B | 161.40B |
| Cash, Cash Equivalents and Short-Term Investments | 6.82B | 7.43B | 5.58B | 6.59B | 6.22B | 7.83B |
| Total Debt | 38.94B | 39.51B | 42.89B | 45.24B | 33.50B | 33.14B |
| Total Liabilities | 102.40B | 103.94B | 100.90B | 100.42B | 84.65B | 86.70B |
| Stockholders Equity | 66.28B | 65.25B | 60.16B | 59.80B | 72.63B | 73.07B |
Cash Flow | ||||||
| Free Cash Flow | 8.36B | 7.94B | 4.53B | 4.72B | 4.39B | 4.75B |
| Operating Cash Flow | 11.12B | 10.57B | 7.16B | 7.88B | 7.17B | 7.07B |
| Investing Cash Flow | -1.20B | -1.26B | -1.53B | -3.04B | -2.83B | -1.36B |
| Financing Cash Flow | -8.27B | -7.49B | -6.62B | -4.53B | -5.86B | -6.68B |
RTX Technical Analysis
Negative
196.42
Price Trends
200.26
Negative
192.61
Positive
176.26
Positive
Market Momentum
-0.27
Negative
45.86
Neutral
26.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RTX, the sentiment is Negative. The current price of 196.42 is below the 20-day moving average (MA) of 196.75, below the 50-day MA of 200.26, and above the 200-day MA of 176.26, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 26.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $86.32B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
68 Neutral | $294.58B | 38.03 | 46.39% | 0.48% | -19.21% | 31.83% | |
67 Neutral | $241.46B | 31.57 | 10.62% | 1.44% | 8.79% | 39.63% | |
67 Neutral | $83.47B | 27.70 | 28.05% | 1.55% | -0.14% | 72.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $122.10B | 23.12 | 80.53% | 2.77% | 2.88% | -35.15% | |
53 Neutral | $184.58B | -10,177.67 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
RTX
RTX
179.30
59.36
49.49%
BA
Boeing
234.15
57.89
32.84%
GD
General Dynamics
318.71
51.90
19.45%
GE
GE Aerospace
282.34
85.97
43.78%
LMT
Lockheed Martin
529.79
75.39
16.59%
NOC
Northrop Grumman
587.66
131.91
28.94%
RTX Corporate Events
Executive/Board Changes
RTX Announces Board Resignation and Governance Adjustment
Neutral
Mar 5, 2026
On March 5, 2026, RTX Corporation announced that director James A. Winnefeld Jr. resigned from the company’s Board of Directors, effective the same day, with the company clarifying that his departure did not arise from any dispute or disagre...
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.