RTX (RTX)
NYSE:RTX
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RTX
(NYSE:RTX)
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Rating:75Outperform
Price Target:
$226.00
▲(17.16% Upside)
Action:DowngradedDate:01/28/26
Overall score reflects improving financial performance (higher revenue, better margins, stronger free cash flow, and reduced leverage) and strong technical uptrend. These positives are moderated by a demanding valuation (high P/E with a modest yield) and guidance that, while positive, includes meaningful near-term headwinds such as tariffs, elevated CapEx, and GTF-related cash outflows.
Positive Factors
Free cash flow generation
Sustained, material free cash flow delivery demonstrates strong earnings-to-cash conversion, enabling debt paydown, reinvestment and shareholder returns. Over the next 2–6 months this cash profile supports execution of guidance and reduces reliance on external financing for growth investments.
Negative Factors
Large absolute debt and near-term maturities
Although leverage has improved, the absolute debt stock remains large and requires continued strong free cash flow to sustain reductions. Near-term maturities and required repayments mean cash allocation choices (debt paydown vs. capex/dividends) will materially affect financial flexibility over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained, material free cash flow delivery demonstrates strong earnings-to-cash conversion, enabling debt paydown, reinvestment and shareholder returns. Over the next 2–6 months this cash profile supports execution of guidance and reduces reliance on external financing for growth investments.
Read all positive factors
RTX (RTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$258.93B
Dividend Yield1.44%
Average Volume (3M)6.22M
Price to Earnings (P/E)36.5
Beta (1Y)0.67
Revenue Growth8.79%
EPS Growth39.63%
CountryUS
Employees185,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.55
Shares Outstanding1,342,287,700
10 Day Avg. Volume4,886,854
30 Day Avg. Volume6,215,585
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 Cap1.13
Enterprise Value/Revenue3.31
Enterprise Value/Gross Profit16.50
Enterprise Value/Ebitda22.12
Forecast
1Y Price Target
$225.17Price Target Upside16.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.84
Revenue Forecast (FY)$93.50B
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 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 service...
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:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive outlook: the company delivered strong FY2025 results (double-digit organic revenue growth, EPS growth, and materially higher free cash flow), a record backlog with robust book-to-bill, broad-based segment momentum (Pratt, Raytheon, Collins), clear evidence of productivity improvements, and constructive 2026 guidance (higher sales, EPS, and free cash flow). Notable near-term headwinds were repeatedly disclosed — tariff impacts, GTF-related customer compensation cash outflows, some GAAP adjustments/pension items, supply-chain constraints and near-term debt maturities — but management provided mitigation plans (capacity investments, digital productivity, supply-chain engagement) and guidance that incorporates these items. Overall, the positives (growth, backlog, cash, operational gains, and concrete 2026 guidance) substantially outweigh the disclosed lowlights.Positive Updates
Full-Year Revenue and Organic Growth
Adjusted sales of $88.6 billion for FY2025, up $9.0 billion year-over-year and +11% organic growth.
Negative Updates
Tariff and Other One-Time Impacts
Q4 and FY results included approximately $600 million of tariff-related impacts; Collins experienced ~90 bps margin drag from tariffs in 2025; Collins expects an extra quarter of tariff expense in early 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Organic Growth
Adjusted sales of $88.6 billion for FY2025, up $9.0 billion year-over-year and +11% organic growth.
Read all positive updates
Company Guidance
RTX guided 2026 adjusted sales of $92–93 billion (5%–6% organic growth) with adjusted EPS of $6.60–$6.80 and free cash flow of $8.25–$8.75 billion; the company expects consolidated segment margin expansion supported by mid-single‑digit growth in commercial OE and defense and high‑single‑digit growth in commercial aftermarket, and plans total company and customer‑funded R&D/investment of about $10.5 billion (including roughly $3.1 billion of CapEx, ~$500 million above 2025). Management said segment operating profit growth will drive ~ $0.59 of EPS at the midpoint (offset by a ~$0.03 divestiture headwind, ~$0.13 lower pension income, ~$0.05 higher share count and ~$0.06 minority interest headwinds, and a ~$0.06 interest tailwind), and detailed free cash flow drivers of +$1.1 billion from operations, a ~$300 million YoY tailwind from ~$700 million of powder‑metal customer compensation, a ~$500 million CapEx headwind, and ~ $300 million of other headwinds. At the segment level, Collins is expected to see mid‑single‑digit adjusted sales (high‑single‑digit organic) with operating profit up $425–525 million; Pratt mid‑single‑digit sales with operating profit up $225–325 million; and Raytheon mid‑to‑high‑single‑digit sales with operating profit up $200–300 million.RTX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 88.60B | 80.74B | 68.92B | 67.07B | 64.36B |
| Gross Profit | 17.79B | 15.41B | 12.09B | 13.67B | 12.50B |
| EBITDA | 12.89B | 10.67B | 7.36B | 9.14B | 8.93B |
| Net Income | 6.73B | 4.77B | 3.19B | 5.20B | 3.86B |
Balance Sheet | |||||
| Total Assets | 171.08B | 162.86B | 161.87B | 158.86B | 161.40B |
| Cash, Cash Equivalents and Short-Term Investments | 7.43B | 5.58B | 6.59B | 6.22B | 7.83B |
| Total Debt | 39.51B | 42.89B | 45.24B | 33.50B | 33.14B |
| Total Liabilities | 103.94B | 100.90B | 100.42B | 84.65B | 86.70B |
| Stockholders Equity | 65.25B | 60.16B | 59.80B | 72.63B | 73.07B |
Cash Flow | |||||
| Free Cash Flow | 7.94B | 4.53B | 4.72B | 4.39B | 4.75B |
| Operating Cash Flow | 10.57B | 7.16B | 7.88B | 7.17B | 7.07B |
| Investing Cash Flow | -1.26B | -1.53B | -3.04B | -2.83B | -1.36B |
| Financing Cash Flow | -7.49B | -6.62B | -4.53B | -5.86B | -6.68B |
RTX Technical Analysis
Positive
192.90
Price Trends
199.96
Negative
189.64
Positive
172.91
Positive
Market Momentum
-2.84
Positive
42.52
Neutral
16.61
Positive
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 192.9 is below the 20-day moving average (MA) of 200.59, below the 50-day MA of 199.96, and above the 200-day MA of 172.91, indicating a neutral trend. The MACD of -2.84 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $96.82B | 14.28 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $258.93B | 36.54 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $92.80B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $139.06B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
70 Outperform | $297.62B | 37.76 | 45.88% | 0.48% | -19.21% | 31.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $156.31B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
RTX
RTX
192.90
61.96
47.32%
BA
Boeing
199.03
30.47
18.08%
GD
General Dynamics
343.22
72.41
26.74%
GE
GE Aerospace
283.77
85.05
42.80%
LMT
Lockheed Martin
604.39
163.56
37.10%
NOC
Northrop Grumman
682.24
178.16
35.34%
RTX Corporate Events
Business Operations and StrategyFinancial Disclosures
RTX Initiates $2.5 Billion Pension Buy-Out
Neutral
Nov 13, 2025
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...
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.