RTX (NYSE:RTX) Announces Quarterly Earnings Results

RTX (NYSE:RTX) issued its quarterly earnings data on Tuesday. The company reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.78 by $0.48, FiscalAI reports. The firm had revenue of $24.96 billion during the quarter, compared to the consensus estimate of $24.11 billion. RTX had a net margin of 8.75% and a return on equity of 14.89%. The business’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period last year, the business posted $1.70 earnings per share.

Here are the key takeaways from RTX’s conference call:

• RTX raised its full-year outlook, increasing adjusted sales guidance to $97.0–$97.5 billion, adjusted EPS to $7.65–$7.75, and free cash flow to $9.0–$9.2 billion, partly reflecting approximately $0.25 of IEEPA-related EPS recovery.
• Demand remains strong across defense and commercial aerospace, with record backlog reaching $340 billion. Raytheon secured nearly $59 billion of defense awards, including major Tomahawk and AMRAAM contracts, while commercial orders exceeded $22 billion.
• Commercial aftermarket growth was resilient, rising 16% organically in the quarter, led by Pratt’s GTF business. Pratt expects GTF shop visits to support further revenue, margin, and cash-flow growth as GTF Advantage and Hot Section+ upgrades enter service.
• Management expects the new multi-year munitions contracts to require substantial supply-chain, capacity, and capital investments over the next two to three years; revenue and profit contributions should build gradually, with full-rate production expected around 2030.
• Near-term results include significant one-time benefits, particularly IEEPA recovery, while Collins expects fourth-quarter margin pressure from higher R&D and digital spending, the absence of further IEEPA refunds, and increased OE investment.

RTX Stock Performance

RTX stock opened at $191.57 on Thursday. The business has a 50 day moving average of $197.84 and a 200-day moving average of $193.65. The company has a market capitalization of $258.19 billion, a P/E ratio of 31.10, a P/E/G ratio of 2.33 and a beta of 0.31. RTX has a 1 year low of $166.74 and a 1 year high of $226.88. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.05 and a quick ratio of 0.78.

Key Headlines Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Strong Q3 beat: RTX reported adjusted EPS of $2.26, versus the $1.78 analyst consensus, while revenue increased 11.1% year over year to approximately $25.0 billion. Segment operating profit rose with roughly 310 basis points of margin expansion. RTX Q3 Earnings Results
• Positive Sentiment: Guidance was raised: RTX now expects fiscal 2026 adjusted EPS of $7.65–$7.75 and revenue of $97.0–$97.5 billion, above consensus estimates of $7.25 EPS and $96.2 billion in revenue. This was the company’s third outlook increase of the year. RTX Q3 Earnings Call Highlights
• Positive Sentiment: Record backlog improves visibility: More than $81 billion of new commercial and defense awards pushed total backlog to a record $340 billion. Management cited strong aircraft aftermarket demand, missile orders and expanding defense production, with missile agreements providing “almost a decade” of demand visibility. RTX also secured $729 million in counter-drone contracts. RTX Lifts Outlook
• Positive Sentiment: Product and aftermarket momentum: Collins Aerospace announced FAA-compliant radio-altimeter upgrades, while Pratt & Whitney Canada introduced a certified turboprop engine offering higher power and lower fuel consumption. These launches support longer-term commercial aerospace growth. Collins Aerospace Radio Altimeter Upgrades
• Neutral Sentiment: Risks temper the reaction: RTX trades at a premium earnings multiple, and investors remain focused on margin pressure, supply-chain execution and the sustainability of cash generation. Increased receivables factoring contributed materially to recent operating-cash-flow growth, while paused buybacks limit near-term capital returns. RTX Q3 Earnings Margin Analysis

Insider Transactions at RTX

In other news, insider Troy D. Brunk sold 8,557 shares of the stock in a transaction on Friday, July 24th. The shares were sold at an average price of $210.29, for a total transaction of $1,799,451.53. Following the completion of the sale, the insider directly owned 8,809 shares in the company, valued at $1,852,444.61. This represents a 49.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Kevin G. Dasilva sold 4,760 shares of RTX stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $213.62, for a total value of $1,016,831.20. Following the completion of the transaction, the vice president directly owned 22,349 shares of the company’s stock, valued at approximately $4,774,193.38. This trade represents a 17.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 29,222 shares of company stock worth $6,362,003. Company insiders own 0.10% of the company’s stock.

Analyst Upgrades and Downgrades

RTX has been the topic of a number of analyst reports. Argus set a $245.00 price target on RTX and gave the stock a “buy” rating in a research report on Thursday, July 30th. Jefferies Financial Group set a $250.00 price objective on RTX and gave the stock a “buy” rating in a research note on Sunday, July 26th. BNP Paribas Exane lifted their price objective on RTX from $220.00 to $265.00 and gave the company an “outperform” rating in a report on Friday, July 24th. UBS Group upped their target price on RTX from $209.00 to $212.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, The Goldman Sachs Group increased their target price on RTX from $195.00 to $206.00 and gave the stock a “neutral” rating in a report on Monday, July 27th. Eighteen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $227.12.

About RTX

RTX Corporation (NYSE: RTX) is an aerospace and defense company that develops and manufactures products and systems for commercial aviation, business aviation, military aircraft and government customers. Its portfolio includes aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, air and missile defense systems, precision weapons, radars and advanced sensors.

The company operates through three principal businesses: Collins Aerospace, which supplies aerospace systems and components; Pratt & Whitney, which designs and produces aircraft engines and related services; and Raytheon, which provides defense and intelligence technologies.