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RTX
(NYSE:RTX)
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Rating:76Outperform
Price Target:
$220.00
▲(3.39% Upside)
Action:Reiterated
Date:07/23/26
RTX scores well primarily on improving financial performance (margin recovery and strong TTM free cash flow) and a very strong earnings-call setup with raised guidance and record backlog. Technicals add moderate support via an uptrend above key moving averages. The main offset is valuation, with a high P/E and only a modest dividend yield.
Positive Factors
Free Cash Flow Strength
RTX's sharp step-up in FCF (TTM +43.8%) signals durable cash-generation from operations and improved conversion versus prior years. This supports reinvestment in capacity, debt reduction and shareholder returns, and provides a buffer to fund multi-year programs and sustain capital-intensive aerospace operations.
Negative Factors
Remaining Leverage
Although debt has declined materially, total leverage remains moderate for the industry. Continued indebtedness leaves less flexibility if large program charges, sustained OE weakness, or defense budget shifts occur, potentially constraining capital allocation or forcing slower deleveraging under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
RTX's sharp step-up in FCF (TTM +43.8%) signals durable cash-generation from operations and improved conversion versus prior years. This supports reinvestment in capacity, debt reduction and shareholder returns, and provides a buffer to fund multi-year programs and sustain capital-intensive aerospace operations.
Read all positive factors
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 (RTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.06B
Dividend Yield1.24%
Average Volume (3M)4.81M
Price to Earnings (P/E)39.0
Beta (1Y)0.70
Revenue Growth11.84%
EPS Growth24.93%
CountryUS
Employees180,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.75
Shares Outstanding1,347,758,200
10 Day Avg. Volume4,847,407
30 Day Avg. Volume4,808,665
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$234.47Price Target Upside10.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)7.23
Revenue Forecast (FY)$96.11B
RTX Business Overview & Revenue Model
Company Description
RTX Corporation (RTX) is a U.S.-based aerospace and defense company serving commercial aviation, defense, and space markets. The company operates through three primary segments: Collins Aerospace (aircraft systems, avionics, interiors, and afterma...
How the Company Makes Money
RTX generates revenue primarily from (1) product sales and (2) services/aftermarket support, with a large portion tied to long-duration programs. Collins Aerospace earns revenue by selling aerospace systems and components to airframe manufacturers...
RTX Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed a decidedly positive tone: strong organic revenue growth, record backlog, substantial defense and commercial bookings, margin expansion, operational improvements (notably at Pratt MRO and Raytheon production), and an upgraded full-year outlook for sales, EPS and free cash flow. Near-term headwinds include OE mix pressure at Pratt, working capital/inventory builds to support higher production, some one-time costs and tariff/SG&A pressures, and the fact that key framework agreements are not yet in backlog. On balance the financial results, upgraded guidance, large backlog and clear operational progress outweigh the challenges.Positive Updates
Strong Top-Line Growth and Raised Outlook
Adjusted sales of $24.7B in Q2, up 16% organically (14% on adjusted basis). Company raised full-year adjusted sales guidance by $2.5B to $95.0B–$96.0B, implying organic sales growth of 8%–9% (up from prior 5%–6%).
Negative Updates
Pratt Commercial OE Weakness and Mix Pressure
Pratt commercial OE sales declined 8% in Q2 and full-year OE now expected to be down low single digits. Management cited mix shifts and allocation of material to support higher aftermarket/MRO throughput as drivers of the OE revenue weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth and Raised Outlook
Adjusted sales of $24.7B in Q2, up 16% organically (14% on adjusted basis). Company raised full-year adjusted sales guidance by $2.5B to $95.0B–$96.0B, implying organic sales growth of 8%–9% (up from prior 5%–6%).
Read all positive updates
Company Guidance
RTX raised its full-year guidance, increasing adjusted sales by $2.5 billion to $95.0–$96.0 billion (implying 8–9% organic growth vs. prior 5–6%), with commercial OE now expected to grow mid‑ to high‑single digits, commercial aftermarket low‑double digits, and defense high‑single digits; adjusted EPS was raised by $0.40/$0.35 to $7.10–$7.25 (with roughly $0.26 of the midpoint increase from higher segment operating profit) and free cash flow was lifted to $8.5–$8.75 billion (from $8.25–$8.75B). Segment outlooks were upgraded: Collins sales now mid‑ to high‑single digit (organic high‑single to low‑double) with operating profit up $550–$625M vs. 2025 (prior $425–$525M); Pratt sales now expected to grow high‑single digit (adjusted and organic) with operating profit up $275–$350M (prior $225–$325M); and Raytheon sales are now forecast to grow high‑single to low‑double digits with operating profit up $575–$650M (vs. prior $275–$375M).RTX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.50B | 88.60B | 80.74B | 68.92B | 67.07B | 64.39B |
| Gross Profit | 19.02B | 17.79B | 15.41B | 12.09B | 13.67B | 12.49B |
| EBITDA | 16.07B | 14.95B | 12.53B | 9.70B | 11.53B | 11.00B |
| Net Income | 7.74B | 6.73B | 4.77B | 3.19B | 5.20B | 3.86B |
Balance Sheet | ||||||
| Total Assets | 173.97B | 171.08B | 162.86B | 161.87B | 158.86B | 161.40B |
| Cash, Cash Equivalents and Short-Term Investments | 8.30B | 7.43B | 5.58B | 6.59B | 6.22B | 7.83B |
| Total Debt | 38.86B | 39.51B | 42.89B | 45.24B | 33.50B | 33.14B |
| Total Liabilities | 105.83B | 103.94B | 100.90B | 100.42B | 84.65B | 86.70B |
| Stockholders Equity | 66.38B | 65.25B | 60.16B | 59.80B | 72.63B | 73.07B |
Cash Flow | ||||||
| Free Cash Flow | 12.02B | 7.94B | 4.53B | 4.72B | 4.39B | 4.75B |
| Operating Cash Flow | 14.82B | 10.57B | 7.16B | 7.88B | 7.17B | 7.07B |
| Investing Cash Flow | -1.63B | -1.26B | -1.53B | -3.04B | -2.83B | -1.36B |
| Financing Cash Flow | -8.99B | -7.49B | -6.62B | -4.53B | -5.86B | -6.68B |
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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $107.13B | 23.57 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $302.06B | 38.98 | 11.79% | 1.30% | 11.84% | 24.93% | |
76 Outperform | $139.20B | 22.13 | 86.24% | 2.34% | 7.20% | 52.79% | |
74 Outperform | $380.47B | 43.20 | 49.03% | 0.47% | 21.69% | 18.42% | |
70 Outperform | $82.10B | 18.25 | 26.58% | 1.73% | 5.90% | 16.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $183.99B | 87.36 | 104.83% | ― | 24.78% | ― |
* Industrials Sector Average
RTX
RTX
223.86
70.81
46.27%
BA
Boeing
233.24
0.63
0.27%
GD
General Dynamics
391.89
83.32
27.00%
GE
GE Aerospace
368.06
89.84
32.29%
LMT
Lockheed Martin
597.77
177.54
42.25%
NOC
Northrop Grumman
575.69
3.86
0.67%
RTX Corporate Events
Executive/Board ChangesShareholder Meetings
RTX Shareowners Approve Directors, Pay, and Auditor Policies
Positive
May 4, 2026
RTX held its 2026 Annual Meeting of Shareowners on April 30, 2026, with a quorum of more than 1.19 billion shares represented out of approximately 1.35 billion shares outstanding as of the March 3, 2026 record date. Shareowners elected all nominat...
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.