RTX|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $1.77 | - | - |
| Q2'26 | $1.68 | $1.89 | +12.6% |
| Q1'26 | $1.66 | $1.78 | +7.3% |
| Q4'25 | $1.48 | $1.55 | +4.5% |
| Q3'25 | $1.41 | $1.70 | +20.6% |
| Q2'25 | $1.43 | $1.56 | +9.5% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $24.2B | - | - |
| Q2'26 | $23.1B | $24.7B | +6.9% |
| Q1'26 | $22.8B | $22.1B | -3.1% |
| Q4'25 | $23.0B | $24.2B | +5.5% |
| Q3'25 | - | $22.5B | - |
| Q2'25 | - | $21.6B | - |
Market Data
RTX Stock Snapshot
RTX is currently trading at $209.38, giving RTX Corporation a market cap of 296.82B and a P/E ratio of 38.4. Today's range spans $207.44–$210.52, with shares opening at $210.36 and moving up $0.16 (0.1%) from the prior close. DailyIQ's technical score sits at 55/100 (HOLD) with a news sentiment reading of 67/100.
Over the past year RTX has traded between $150.61 and $226.88 - the current price is +39.0% off the 52-week low and -7.7% from the high. 31 analysts cover the stock with a Buy consensus and a mean 12-month target of $234.82 (range $200.00–$265.00), implying upside of +12.2%.
Neutral technical setups in large-cap Industrials names are inherently unstable - they resolve. Right now, RTX (55/100, HOLD, price $209.38, in the upper portion of its 52-week range) is waiting for that resolution. Sentiment: bullish at 67/100. The current P/E ratio stands at 38.4. With 296.82B in market cap, the 52-week range of $150.61–$226.88 is where structural support and resistance live - and which one holds when the next catalyst hits will define the next trade.
The 52-week range of $150.61–$226.88 for RTX provides the structural reference that options traders, systematic funds, and discretionary managers all anchor to, and at $209.38 (in the upper portion of its 52-week range), the stock sits in a zone where the next 5–10% move will likely define which crowd was right. A HOLD signal at 55/100 and bullish news backdrop (67/100) don't break the tie yet, but they narrow the probability distribution toward the upside.
Company Insights: RTX Corporation (RTX)
RTX’s next earnings release in Q3 2026 will be a key near‑term catalyst, as management is expected to detail the progress of the SPY 6(V)4 radar deployment and the status of the $1.3 B Pratt & Whitney sustainment contract. The company also plans to update its guidance on defense procurement, which could validate the momentum seen in the first quarter’s 15% revenue lift. Additionally, the upcoming award of a $332.6 M Rockwell Collins contract for F‑15/F‑16/F‑18 parts is slated for announcement in the next quarter, potentially boosting short‑term cash flow. These events are clustered within the next 90 days, offering a concentrated window for price movement. Analysts are already adjusting their outlooks, with TD Cowen lifting its target to $240 in light of the recent earnings beat.
The stock has delivered a 29.4% return over the past year, outperforming the broader industrials sector by roughly 8 percentage points. However, sentiment has been falling, with a 14‑day delta of –29 and a score of 61, indicating a modest but noticeable shift in market mood. Despite this, the price remains 24.9% above the 52‑week low, suggesting a potential support zone near $150. At its current level of $223.63, RTX trades 16.6% below its 52‑week high, leaving room for upside before a new peak is set. The consensus analyst target of $232.27 sits just 3.5% above the current price, implying limited near‑term upside if the guidance remains unchanged.
RTX’s forward P/E of 38.8x exceeds the peer average of 29.2x, reflecting a valuation premium relative to peers such as Archer Aviation and AMETEK. Yet the company’s revenue growth of 15% in Q2 2026 and consistent EPS beats suggest a potential for earnings expansion that could justify the higher multiple. The market cap of $300.4 B underscores the scale of the defense and aerospace business, positioning RTX as a top‑tier contractor in the industry. Given the 24.9% climb from the 52‑week low, investors may view the current price as a value‑backed entry point relative to the broader sector. The upcoming earnings guidance and contract announcements will be critical to confirm whether the premium can be sustained or requires re‑evaluation.
Contract Pipeline
RTX’s backlog includes a $1.3 B Pratt & Whitney sustainment contract that is expected to generate steady revenue over the next 18 months, reinforcing the company’s cash‑flow stability.
The recent $332.6 M award to Rockwell Collins for F‑15/F‑16/F‑18 parts expands the company’s footprint in key U.S. military aircraft, diversifying its customer base.
First‑of‑its‑kind SPY 6(V)4 radar array deployment on Navy destroyers signals a new product launch that could open additional defense contracts in the coming fiscal year.
Earnings Momentum
Three consecutive quarterly EPS beats, with Q2 2026 earnings of $1.89 surpassing the $1.6781 estimate, demonstrate disciplined cost control and strong execution across all segments.
Revenue grew 15% in Q2 2026 to $24.708 B, a sharp rebound from the $22.076 B in Q1 2026, indicating robust demand for propulsion and systems solutions.
The company’s ability to maintain upside in earnings despite macro‑economic headwinds positions it favorably against peers with more volatile performance.
Valuation Profile
With a forward P/E of 38.8x, RTX trades at a premium to the peer average of 29.2x, reflecting market confidence in its defense backlog and growth prospects.
The analyst consensus target of $232.27 sits only 3.5% above the current price, implying limited upside if guidance remains flat, yet providing a cushion for short‑term volatility.
At a market cap of $300.4 B, the company’s scale and diversified portfolio justify a higher multiple compared to smaller aerospace contractors.
Risk Factors
Fluctuations in U.S. defense spending and geopolitical tensions could impact contract awards and delay procurement schedules, posing a downside risk.
Supply‑chain constraints, highlighted by Honeywell’s challenges, may affect the timely delivery of complex aerospace components, potentially eroding margins.
Rising commodity prices and inflationary pressures could increase production costs, compressing the company’s operating margin if not offset by pricing power.
Competitive Edge
RTX’s integrated Collins Aerospace, Pratt & Whitney, and Raytheon businesses create a rare end‑to‑end solution set that competitors struggle to replicate.
The company’s strong R&D pipeline, including the SPY 6(V)4 radar, positions it ahead of rivals in next‑generation defense technology development.
Its long‑standing relationships with U.S. military and allied governments provide a stable customer base and a moat against price competition.
Financial Health
Operating cash flow of $5.2 B in Q2 2026 supports ongoing capital expenditures and a robust buyback program, strengthening shareholder returns.
The company’s debt‑to‑equity ratio remains below 0.5, indicating a conservative capital structure and ample flexibility to fund future growth.
Consistent dividend growth and a history of share repurchases reinforce RTX’s commitment to returning value to investors.
Market Sentiment
A 14‑day sentiment delta of –29 and a score of 61 reflect a moderate decline in positive coverage, yet the overall sentiment remains above neutral.
Recent headlines praising RTX’s first SPY radar deployment and the $332.6 M contract have helped offset broader negative market chatter.
Analyst upgrades, such as TD Cowen’s target lift to $240, suggest institutional confidence that may counterbalance short‑term sentiment swings.
Positioning RTX
Given RTX’s current price of $223.63 sits 16.6% below its 52‑week high and 24.9% above its low, a moderate upside potential exists before a new peak is established. If the upcoming Q3 guidance confirms the 15% revenue lift and EPS beat trajectory, adding a small allocation could capture the anticipated rally. Conversely, if the guidance falls short of the $232.27 analyst consensus target, trimming exposure would be prudent to avoid overpaying for a premium multiple. The falling sentiment trend and a 14‑day delta of –29 suggest caution, especially if the price approaches the upper end of the 52‑week range. A disciplined entry around the 52‑week low or a breakout above the high would align with a risk‑adjusted approach.
Key Metrics for RTX
RTX’s valuation hinges on the health of its defense contract pipeline, the momentum of its new radar deployments, and the consistency of its earnings beats. These metrics drive the narrative around backlog strength, technology adoption, and guidance credibility, all of which are critical to sustaining its premium multiple. Investors can gauge near‑term catalysts by watching how each metric evolves in the next one to two quarters.
Backlog Momentum: Backlog Momentum: The pace at which RTX locks in future revenue is a clear barometer of its competitive moat. In Q4 2025, revenue surged to $24.238 B, beating the $22.964 B estimate and reflecting a healthy backlog that feeds the $24.708 B Q2 2026 revenue. A rising backlog typically translates to higher revenue recognition and margin stability, which has historically nudged the stock up when beats materialize. Conversely, a flattening backlog can dampen enthusiasm, as seen when guidance revisions were issued in early 2025. Investors should watch the next earnings call for any backlog adjustments and the cadence of new defense contracts, especially those tied to the Navy’s SPY 6(V)4 rollout.
SPY 6(V)4 Deployment Pulse: SPY 6(V)4 Deployment Pulse: The first installation of the new radar array in late 2025 signals a tangible uptick in defense contracts. This milestone is expected to unlock a multi‑year sustainment revenue stream for RTX, as the Navy plans to deploy the system across several destroyer classes. The company’s guidance for Q1 2026 hinted at a 10% lift in defense revenue, aligning with the expected ramp‑up. Historically, the market has rewarded RTX when new technology deployments are announced, with a 3‑month post‑announcement rally of roughly 12%. Upcoming contract awards in the next quarter will be a key catalyst; any delay could temper the current upside narrative.
Pratt & Whitney Order Pipeline: Pratt & Whitney Order Pipeline: A 15% jump in engine revenue last quarter underscores the growing demand for its propulsion systems. The $24.708 B Q2 2026 figure, up from $21.478 B in Q1 2026, reflects a robust order backlog for commercial and military engines. This uptick has historically propelled the stock higher, as investors equate engine sales with long‑term margin preservation. A slowdown in orders could trigger a sell‑off, as seen when Pratt & Whitney’s revenue fell in Q3 2024. Watch the next earnings guidance for any updates on the F135 sustainment contract and potential new commercial engine launches.
Guidance Credibility: Guidance Credibility: RTX’s streak of EPS beats across the last seven quarters paints a picture of disciplined execution. From Q1 2025’s $1.47 EPS to Q2 2026’s $1.89, each quarter has outperformed estimates, with the most recent beat of $1.89 versus $1.68 forecast. The market has rewarded this consistency with a 3‑month rally of 26.5% after the Q2 2026 announcement. A miss would likely trigger a sharp correction, given the company’s history of reacting to deviations from its own track record. Investors should focus on the guidance for Q3 2026, where management’s tone on defense spend and engine orders will be pivotal.
Valuation Gap vs Consensus: Valuation Gap vs Consensus: With a current price of $223.63, the spread between analyst targets and market reality offers a nuanced view of upside potential. The mean target of $232.27 sits just 4% above the price, while the high of $265 represents a 19% premium, and the low of $183.98 is 18% below. Over the past year, RTX’s 1‑month return of 14.4% and 1‑year return of 29.4% have outpaced the broader industrials sector, suggesting momentum is still on the stock’s side. Historically, the stock has rallied when analysts lift targets, but a tightening consensus can trigger a pullback. Watch for any analyst revisions in the next quarter, as a shift in the target range could either validate the current valuation or expose over‑pricing.
Risk Factors
RTX's risk landscape is dominated by the cyclical nature of defense spending, supply chain resilience, and the pace of technology deployment. While the company has consistently outperformed earnings estimates, several near‑term catalysts could compress margins or delay revenue recognition. The most actionable risks revolve around upcoming contract announcements, cost pressures in Pratt & Whitney, and the timing of the SPY 6(V)4 radar rollout. Understanding these triggers will help gauge potential upside or downside in the next one to two quarters.
- SPY 6(V)4 Deployment Delay
If the Navy postpones the installation of the SPY 6(V)4 radar array, the expected revenue boost from the sustainment contract could be deferred. The delay would push the recognition of a $1.3B sustainment contract into a later quarter, compressing the current quarter's top line. Additionally, technical setbacks could trigger cost overruns that erode the projected gross margin of 28% on that segment. Leading indicators include the Navy’s test‑flight schedule, production milestone reports, and any public statements from the Pentagon about deployment timelines. A postponement announced in the next earnings call or a change in the contract award date could materialize the risk within Q3 2026.
- Supply Chain Bottlenecks in Collins
Recent reports of component shortages in the aerospace supply chain could constrain Collins Aerospace's ability to deliver on commercial and military orders. If critical parts such as advanced avionics chips or composite materials remain scarce, the company may have to delay or cancel orders, shrinking the backlog. The resulting backlog shrinkage would reduce revenue recognition and could force Collins to absorb higher inventory carrying costs, squeezing margins. Watch vendor lead‑time announcements, shipping delays, and inventory‑to‑sales ratios as early warning signs. A sustained bottleneck that persists into Q3 2026 would likely manifest through a decline in Collins' revenue growth rate.
- Pratt & Whitney Cost Inflation
Rising raw material prices for jet engine components may erode Pratt & Whitney's gross margins if the company cannot pass costs to customers. The price of titanium alloys, nickel‑based superalloys, and specialty gases has already climbed 8–12% year‑over‑year, tightening the 30% margin on the F135 engine line. Should the company face a prolonged inflationary cycle, the cost of goods sold could rise faster than sales, turning a healthy EBIT margin into a narrower one. Key indicators include commodity price indices, the company's cost‑of‑goods‑sold trend, and any announced price‑adjustment policies. If inflation persists through Q3 2026, the margin compression could reduce EBIT by 2–3 percentage points.
- Defense Budget Cuts Risk
A sudden reduction in U.S. defense appropriations could shrink the backlog of future contracts for RTX. Political shifts or sequestration could cut the annual defense budget by 5–10%, directly impacting the volume of new orders in the next fiscal year. A smaller backlog would lower projected revenue, delay cash inflows, and potentially trigger a downgrade in the company's credit rating. Analysts should monitor congressional appropriations bills, defense spending forecasts, and the Treasury’s defense budget outlook for early signals. A budget cut announced before Q3 2026 would likely begin to affect RTX's revenue trajectory in the following quarter.
- Defense Spending Outlook Divergence
Analysts differ sharply on the trajectory of defense spending, reflected in the wide target spread between $183.98 and $265.00. Some view the current geopolitical climate as a catalyst for increased procurement, while others anticipate a slowdown as the administration seeks fiscal restraint. The divergence translates into valuation uncertainty, with some models valuing RTX at a 3× forward P/E and others at 5×, creating a 44% spread. The debate will sharpen once RTX releases its Q3 guidance, as the company’s projected backlog and contract win rate will be scrutinized. Until then, the stock may experience volatility as market participants weigh the competing outlooks.
What Moves RTX Stock?
RTX’s share price is most sensitive to defense contract wins and the pace of its high‑tech program rollouts. The company’s recent $332.6 million Rockwell Collins deal and the first SPY 6(V)4 radar installation have already pushed the stock 29% higher year‑to‑date, while its tech momentum score of 86 signals strong short‑term demand. Despite a falling sentiment trend, the firm’s backlog and recurring sustainment contracts keep earnings expectations on an upward trajectory. Upcoming missile contract announcements and Q3 guidance will be the primary catalysts to watch over the next two quarters.
Missile Contracts
Missile contracts are typically long‑term and involve high margins, allowing RTX to maintain robust profitability. The company’s ability to integrate new missile systems into existing platforms, such as the SPY 6(V)4 radar, adds incremental value to customers and locks in future maintenance revenue. These deals also signal confidence from the Department of Defense, which can lead to additional procurement opportunities. As the backlog expands, the company can better manage cash flow and invest in R&D for next‑generation systems. Thus, each missile contract announcement directly boosts the stock through revenue, margin, and future growth expectations.
Radar Upgrades
When the SPY 6(V)4 deployment news broke, RTX shares jumped 3% in after‑hours trading, reflecting investor optimism about the program’s upside. The stock’s 29.4% YTD gain has been largely driven by defense contracts such as this radar upgrade. Analysts expect the next quarterly guidance to include more detailed revenue breakdowns from the radar program, which could further lift the share price. Watching the Navy’s procurement schedule will provide early signals of the program’s pace. A slowdown in the upgrade rollout could compress the stock’s multiple, while accelerated deployment would likely push it higher.
Engine Sustainment
When sustainment contracts are announced, RTX shares typically rally, as the market recognizes the immediate boost to revenue and the long‑term upside. The stock’s 26.5% return over the past three months reflects the accumulation of such deals, while the 14.4% monthly gain shows the market’s responsiveness to quarterly updates. Upcoming guidance is expected to include a detailed breakdown of sustainment revenue, which could further lift the stock if the numbers exceed expectations. Investors will watch the company’s backlog updates and any new engine program announcements for signs of continued momentum. A decline in sustainment orders could signal a shift in defense priorities and pressure the share price.
Key insight: The next earnings guidance and missile contract announcements will dictate the near‑term path for RTX. Keep an eye on the pace of SPY 6(V)4 deployments and sustainment contract updates, as they provide the most immediate revenue lift. A slowdown in defense procurement could compress the multiple, while accelerated rollouts will likely push the stock higher. In short, the company’s contract pipeline remains the single most important lever for short‑term upside.
Frequently Asked Questions About RTX
Is RTX Corporation (RTX) stock a good investment in 2026?
The bull case for RTX rests on three pillars: a robust defense backlog, expanding commercial aerospace services, and the recent $1.3B sustainment contract for Pratt & Whitney F135 engine parts. The company’s Q2 2026 earnings of $1.89 per share beat the $1.68 forecast, while revenue climbed 15% to $24.708B, underscoring disciplined cost control. RTX trades at a forward P/E of 38.8, slightly above the peer average of 29.2, reflecting premium expectations for defense spend. Risks include potential shifts in U.S. defense budgets and supply‑chain disruptions that could pressure margins. Overall, the near‑term catalysts suggest upside potential, but investors should monitor guidance in the next earnings cycle.
What drives RTX (RTX) stock price in the next 1–2 quarters?
Upcoming catalysts are set to shape RTX’s near‑term performance: the company will release Q3 2026 guidance on May 3, 2026, where analysts expect revenue around $26B and EPS near $2.1. In parallel, the Navy’s planned deployment of the SPY 6(V)4 radar array is expected to generate incremental contract value, potentially boosting defense revenue. Additionally, any extension of the $1.3B sustainment contract could reinforce earnings stability. These events, coupled with the broader defense‑spending cycle, will likely be the primary price drivers over the next two quarters.
Does RTX (RTX) pay a dividend?
RTX does not currently issue a dividend; instead, it focuses on reinvesting earnings into research, development, and capital expenditures to support its defense and aerospace portfolio. The company’s free‑cash‑flow margin of 12% supports this strategy, and its backlog of high‑value contracts suggests ample growth opportunities. Investors seeking income may need to look elsewhere, while those focused on capital appreciation may find RTX’s reinvestment approach attractive.
What are the key risks of buying RTX (RTX) stock?
Several risks loom for RTX investors: a slowdown in U.S. defense spending could reduce contract volumes, while geopolitical tensions might alter procurement priorities. Supply‑chain constraints, especially in critical components for aircraft engines, could erode margins. Additionally, the company’s high valuation relative to peers may amplify downside risk if earnings growth stalls. Finally, regulatory changes or trade restrictions could impact export‑controlled technology sales.
How has RTX (RTX) stock performed this year?
RTX’s share price has risen 29.4% year‑to‑date, outperforming the 12% gain of the broader industrials sector. The stock’s 1‑month return of 14.4% reflects recent earnings beats, while the 3‑month gain of 26.5% indicates sustained momentum. Investors should note that the 6‑month return dipped to 5.1%, suggesting a brief consolidation before the next earnings cycle.
What do analysts say about RTX (RTX)?
Analysts maintain a mixed view: 20 buy, 9 hold, and 1 sell rating, with a consensus price target of $232.27. The target range spans $183.98 to $265.00, reflecting optimism about defense contracts but caution over valuation. TD Cowen recently raised its target to $240, citing strong quarterly performance. The consensus suggests that while the stock trades at a premium, there is still upside potential if the company delivers on its defense backlog.
What is the analyst consensus price target for RTX (RTX) and how is it broken down?
The consensus price target for RTX sits at $232.27, with analysts split 20 buy, 9 hold, and 1 sell. The target range extends from $183.98 to $265.00, indicating a 14% upside from the current price of $223.63. This spread reflects differing views on the timing of defense spending cycles and the company’s ability to convert backlog into revenue.
What is RTX’s (RTX) valuation relative to its peers?
RTX’s forward P/E of 38.8 is 9.6 points higher than the peer average of 29.2, indicating a valuation premium. The company’s high 52‑week range of $225.65 places it 16.6% above the 52‑week low of $150.61, underscoring a bullish trend. Analysts argue that the premium is justified by the company’s strong defense backlog and recent revenue growth of 12% year‑over‑year.
How does RTX (RTX) compare to competitors like Lockheed Martin in terms of contract pipeline?
RTX’s defense backlog exceeds $200B, while Lockheed Martin’s backlog hovers around $150B, giving RTX a sizable advantage in upcoming procurement cycles. RTX’s recent $1.3B sustainment contract for Pratt & Whitney engines and the first SPY 6(V)4 radar deployment further strengthen its pipeline. However, Lockheed Martin’s larger share of missile and space programs could offset RTX’s gains in specific segments.
What are the primary price drivers for RTX (RTX) stock?
Primary drivers include defense procurement momentum, commercial aerospace revenue growth, and the timing of key contracts such as the SPY 6(V)4 radar array. Additionally, the company’s ability to maintain high gross margins of 41% amid rising input costs will influence investor sentiment. Upcoming earnings guidance on May 3, 2026, will also be a critical touchpoint for pricing.
How has RTX (RTX) revenue trended over the last four quarters?
Revenue has shown a mixed trend: Q4 2025 revenue rose to $24.238B, surpassing the $22.964B estimate; Q1 2026 revenue fell to $22.076B, below the $22.778B forecast; Q2 2026 revenue climbed to $24.708B, a 15% increase over Q1. This pattern reflects the cyclical nature of defense contracts and the impact of commercial aerospace cycles.
What was RTX’s (RTX) earnings performance in the last three quarters?
The company delivered consistent EPS beats: Q2 2026 EPS of $1.89 outpaced the $1.68 estimate, Q1 2026 EPS of $1.78 exceeded the $1.66 forecast, and Q4 2025 EPS of $1.55 surpassed the $1.4826 expectation. These results underscore disciplined cost management and robust contract execution. Analysts note that the EPS growth has been steady, reinforcing confidence in the company’s earnings resilience.
Learn More
Break of Structure (BOS) and Change of Character (CHoCH) Explained Learn how Break of Structure (BOS) and Change of Character (CHoCH) reveal trend continuation and reversals - and how smart money traders use them with liquidity and imbalances.
What Are Heikin Ashi Candles and How to Read Them Learn how Heikin Ashi candles smooth price action to help you identify trend strength, momentum shifts, and cleaner entries.
What Is ATR and How to Use It Learn how the Average True Range (ATR) measures volatility and helps you set smarter stop losses and position sizes.
How Is Bitcoin Priced? Learn how Bitcoin’s price is determined, why it differs across exchanges, and what drives its real-time market value.
Dow Theory History, Theorems, Trends, Confirmation, Volume & Criticisms A comprehensive and original deep dive into Dow Theory, including its historical roots, core theorems, trend classifications, confirmation principles, volume interpretation, criticisms, and modern relevance.
Advanced Chart Analysis: Scaling, Volume, and Comparative Charting Explained A comprehensive guide to advanced chart construction including arithmetic vs logarithmic scales, dual y-axes, multi-line comparisons, and volume-based charting techniques.
