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olivLaw · US equity research

RTX Corporation RTX

Aircraft Engines & Engine Parts · SIC 3724 · Vertical: Aircraft Engines & Engine Parts (SIC 3724)

203.82USD+0.51% · 1 dayClose 03 Nov 2026

RTX Corporation is an aerospace and defense group with three segments: Collins Aerospace, Pratt & Whitney and Raytheon. In the third quarter of 2026 sales were 25.0 billion USD, up 11 percent, and backlog reached 340 billion USD. The company raised its 2026 outlook, with adjusted sales of 97.0-97.5 billion USD.

At the close of 03 Nov 2026, RTX Corporation (RTX) stock was 203.82 USD (+0.51% on the day), with market capitalisation 275.0 bn USD, P/E 33.1 on diluted EPS of 6.16 USD over the last 12 months, dividend yield 1.38%, beta 0.49, 52-week range 168.02–225.49 USD. Latest reported quarter (Q3 2026): revenue of 25.0 bn USD (+11.1% YoY), net income of 2.6 bn USD (+34.7% YoY), diluted EPS 1.89 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
275.0 bn USD
shares as of 30 Sept 2026
P/E (TTM)
33.1
Diluted EPS TTM 6.16 · TTM to 30 Sept 2026
E/P (TTM)
3.02%
TTM to 30 Sept 2026
Dividend yield
1.38%
DPS 12m 2.82
Beta (2y)
0.49
Volatility (1y) 25%
52-week range
168.02225.49

Price history

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Technical reading

RSI (14)
65.3
strong (55–70)
Bollinger (20, 2)
179.28 – 205.13
in the upper half of the band · %B 0.95 · band width 13.4%
SMA 50 / 200
194.54 / 195.33
mixed trend
MACD (12, 26, 9)
2.50 / 0.69
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+10.4%−2.0%+12.4 pp—
3 months−6.5%−2.2%−4.3 pp—
6 months+17.9%+4.3%+13.6 pp—
Year to date+11.1%+10.6%+0.6 pp—
1 year+15.1%+10.5%+4.7 pp+6.6%
3 years+146.4%+73.7%+72.7 pp+195.2%
5 years+131.5%+61.7%+69.7 pp—
Max drawdown (1y)
−20.1%
18 Aug 2026 → 07 Oct 2026
Max drawdown (5y)
−33.9%
20 Apr 2022 → 05 Oct 2023
Compound annual growth (5y)
+18.3%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
25.0 bn USD
+11.1% YoY
Net income
2.6 bn USD
+34.7% YoY
Diluted EPS
1.89
+34.0% YoY
net / operating
10.3% / 13.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue21.6 bn20.3 bn21.6 bn22.5 bn24.2 bn22.1 bn24.7 bn25.0 bn
Research & development808.0 m637.0 m697.0 m684.0 m789.0 m627.0 m726.0 m711.0 m
SG&A1.6 bn1.4 bn1.6 bn1.4 bn1.6 bn1.5 bn1.7 bn1.9 bn
Operating income2.1 bn2.0 bn2.1 bn2.5 bn2.6 bn2.6 bn2.8 bn3.3 bn
Depreciation & amortisation1.1 bn1.1 bn1.1 bn1.1 bn1.2 bn1.1 bn1.1 bn1.1 bn
Interest expense486.0 m———————
Pre-tax income2.0 bn2.0 bn2.0 bn2.4 bn2.3 bn2.5 bn2.7 bn3.3 bn
Income tax449.0 m333.0 m315.0 m432.0 m584.0 m363.0 m493.0 m593.0 m
Net income1.5 bn1.5 bn1.7 bn1.9 bn1.6 bn2.1 bn2.1 bn2.6 bn
Diluted EPS1.10 ≈1.141.221.411.19 ≈1.511.571.89
Operating cash flow1.6 bn1.3 bn458.0 m ≈4.6 bn ≈4.2 bn1.9 bn3.5 bn ≈2.9 bn ≈
Capex1.1 bn513.0 m530.0 m ≈614.0 m ≈970.0 m546.0 m669.0 m ≈749.0 m ≈
Dividends paid802.0 m840.0 m910.0 m ≈910.0 m ≈914.0 m915.0 m983.0 m ≈984.0 m ≈
Share repurchases50.0 m50.0 m0 ≈0 ≈000 ≈0 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 65 percentile of its own 40-quarter history (min 6.9, median 26.7, max 59.2; quarters with earnings only).

Fiscal years

Fiscal year⚠ 20182019202020212022202320242025
Revenue34.7 bn45.3 bn56.6 bn64.4 bn67.1 bn68.9 bn80.7 bn88.6 bn
Revenue YoY—+30.7%+24.8%+13.8%+4.2%+2.8%+17.1%+9.7%
Net income5.3 bn5.5 bn-3.5 bn3.9 bn5.2 bn3.2 bn4.8 bn6.7 bn
Net income YoY—+5.1%−163.6%unavailable+34.5%−38.5%+49.4%+41.0%
Diluted EPS6.506.41-2.592.563.502.233.554.96
Diluted EPS YoY—−1.4%−140.4%unavailable+36.7%−36.3%+59.2%+39.7%
net %15.2%12.2%-6.2%6.0%7.7%4.6%5.9%7.6%
Free cash flowunavailableunavailableunavailableunavailable4.9 bn5.5 bn4.5 bn7.9 bn

The series breaks before 2018: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
7.4 bn USD
Financial debt
204.0 m USD
Net debt
-7.2 bn USD
Equity
67.1 bn USD
Total assets
171.1 bn USD
Debt / equity
0.00x
Current ratio
1.03x
ROE
10.4%
ROA
4.0%
FCF margin
9.0%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
68.9 bn
2024
80.7 bn
2025
88.6 bn

SEC (XBRL)· 06 Feb 2026verified

Research & development
2023
2.8 bn
2024
2.9 bn
2025
2.8 bn

SEC (XBRL)· 06 Feb 2026verified

SG&A
2023
5.8 bn
2024
5.8 bn
2025
6.1 bn

SEC (XBRL)· 06 Feb 2026verified

Operating income
2023
3.6 bn
2024
6.5 bn
2025
9.3 bn

SEC (XBRL)· 06 Feb 2026verified

Depreciation & amortisation
2023
4.2 bn
2024
4.4 bn
2025
4.4 bn

SEC (XBRL)· 06 Feb 2026verified

EBITDA
2023
7.8 bn ≈
2024
10.9 bn ≈
2025
13.7 bn ≈

SEC (XBRL)· 06 Feb 2026derived

Interest expense
2023
1.5 bn
2024
1.9 bn
2025
—

SEC (XBRL)· 03 Feb 2025verified

Pre-tax income
2023
3.8 bn
2024
6.2 bn
2025
8.7 bn

SEC (XBRL)· 06 Feb 2026verified

Income tax
2023
456.0 m
2024
1.2 bn
2025
1.7 bn

SEC (XBRL)· 06 Feb 2026verified

Net income
2023
3.2 bn
2024
4.8 bn
2025
6.7 bn

SEC (XBRL)· 06 Feb 2026verified

Diluted EPS
2023
2.23
2024
3.55
2025
4.96

SEC (XBRL)· 06 Feb 2026verified

Weighted average diluted shares
2023
1.4 bn
2024
1.3 bn
2025
1.4 bn

SEC (XBRL)· 06 Feb 2026verified

Dividend per share
2023
2.32
2024
2.48
2025
2.67

SEC (XBRL)· 06 Feb 2026verified

Balance sheet · USD

Cash
2023
6.6 bn
2024
5.6 bn
2025
7.4 bn

SEC (XBRL)· 06 Feb 2026verified

Inventories
2023
11.8 bn
2024
12.8 bn
2025
13.4 bn

SEC (XBRL)· 06 Feb 2026verified

Current assets
2023
48.4 bn
2024
51.1 bn
2025
60.3 bn

SEC (XBRL)· 06 Feb 2026verified

Property, plant & equipment, net
2023
15.7 bn
2024
16.1 bn
2025
16.9 bn

SEC (XBRL)· 06 Feb 2026verified

Goodwill
2023
53.7 bn
2024
52.8 bn
2025
53.3 bn

SEC (XBRL)· 06 Feb 2026verified

Intangibles (excl. goodwill)
2023
35.4 bn
2024
33.4 bn
2025
31.8 bn

SEC (XBRL)· 06 Feb 2026verified

Total assets
2023
161.9 bn
2024
162.9 bn
2025
171.1 bn

SEC (XBRL)· 06 Feb 2026verified

Accounts payable
2023
10.7 bn
2024
12.9 bn
2025
15.9 bn

SEC (XBRL)· 06 Feb 2026verified

Short-term debt
2023
189.0 m
2024
183.0 m
2025
204.0 m

SEC (XBRL)· 06 Feb 2026verified

Long-term debt
2023
43.6 bn
2024
41.1 bn
2025
—

SEC (XBRL)· 03 Feb 2025verified

Current liabilities
2023
46.8 bn
2024
51.5 bn
2025
58.8 bn

SEC (XBRL)· 06 Feb 2026verified

Total liabilities
2023
100.4 bn
2024
100.9 bn
2025
103.9 bn

SEC (XBRL)· 06 Feb 2026verified

Equity
2023
61.4 bn
2024
61.9 bn
2025
67.1 bn

SEC (XBRL)· 06 Feb 2026verified

Shares outstanding at year end
2023
—
2024
1.3 bn
2025
1.3 bn

SEC (XBRL)· 06 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
7.9 bn
2024
7.2 bn
2025
10.6 bn

SEC (XBRL)· 06 Feb 2026verified

Capex
2023
2.4 bn
2024
2.6 bn
2025
2.6 bn

SEC (XBRL)· 06 Feb 2026verified

Free cash flow
2023
5.5 bn ≈
2024
4.5 bn ≈
2025
7.9 bn ≈

SEC (XBRL)· 06 Feb 2026derived

Investing cash flow
2023
-3.0 bn
2024
-1.5 bn
2025
-1.3 bn

SEC (XBRL)· 06 Feb 2026verified

Financing cash flow
2023
-4.5 bn
2024
-6.6 bn
2025
-7.5 bn

SEC (XBRL)· 06 Feb 2026verified

Dividends paid
2023
3.2 bn
2024
3.2 bn
2025
3.6 bn

SEC (XBRL)· 06 Feb 2026verified

Share repurchases
2023
12.9 bn
2024
444.0 m
2025
50.0 m

SEC (XBRL)· 06 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
9.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
9.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
9.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
42.2%
computed by olivLawFY 2025
Net income growth (YoY)
41.0%
computed by olivLawFY 2025
Net income CAGR 3Y
9.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
39.7%
computed by olivLawFY 2025
EPS CAGR 3Y
12.3%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
75.1%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
16.3%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
11.8%
computed by olivLawTTM to 30 Sept 2026
Net margin
8.8%
computed by olivLawTTM to 30 Sept 2026
FCF margin
9.9%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
12.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
4.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
15.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
10.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
45.8%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
40.0%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
-9.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
-0.6x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
1.0x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
0.8x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
12.4 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
2.9 bn USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
9.5 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
113.1%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
79.3%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
275.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
266.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
32.7x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
33.1x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
3.0%
computed by olivLawTTM to 30 Sept 2026
P/B
4.0x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
2.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
17.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
23.5x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
2.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
28.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
3.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
1.4%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
1.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
2.82
computed by olivLawbalance sheet at 30 Sept 2026

Valuation

olivLaw classification

Unattractive profile

Score: 54 / 100

A scoring methodology on indicators and valuation, not investment advice.

(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])

Closing price

203.82 USD

03 Nov 2026Source: olivLaw, closing series

Market cap: 275.0 bn USD

Key indicators

Market capitalisation
275.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
33.1x
computed by olivLawTTM to 30 Sept 2026
P/B
4.0x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
17.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
12.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
8.8%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
9.7%
computed by olivLawFY 2025
Dividend yield
1.4%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

34/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 30 Sept 2026
Source: SEC (XBRL)published 20 Oct 2026
verified 3056derived 223

Score by group

  • Balance sheet63
  • Growth82
  • Quality65
  • Returns52
  • Valuation27

Estimated value range

Low
82.29
USD per share
Mid
159.39
USD per share
High
163.68
USD per share
Price: 203.82 USD
The price is above the range
Potential to the central value: -21.8% (value / price − 1)
Margin of safety: -27.9% (1 − price / value)
Agreement between methods: medium · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 35.09 – 176.87 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDA82.29 – 163.68 (Mid 159.39)
    5 companies used · median multiple 13.1x · quartiles 6.5x – 13.5x
    HEI, HON, SARO, SIF, TATT
  • Peers: P/E167.67 – 176.87 (Mid 171.21)
    3 companies used · median multiple 27.8x · quartiles 27.2x – 28.7x
    SARO, SIF, TATT
  • Dividend discount (DDM)35.09 – 47.19 (Mid 40.25)
Multiple comparisons use the SIC vertical: Aircraft Engines & Engine Parts (SIC 3724)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 54/100

FactorValueScoreWeight used
ROIC · Quality15.0%60 (vs peers)11%
Net margin · Quality8.8%40 (vs peers)7%
FCF conversion · Quality113.1%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth9.7%81 (on a fixed band)9%
EPS CAGR 3Y · Growth12.3%82 (on a fixed band)9%
Net debt / EBITDA · Balance sheet-0.6x80 (vs peers)11%
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet1.0x20 (on a fixed band)4%
P/E (TTM) · Valuation33.1x20 (vs peers)11%
EV/EBITDA · Valuation17.0x20 (vs peers)11%
FCF yield · Valuation3.5%43 (on a fixed band)9%
Shareholder yield (distributions) · Returns1.4%20 (on a fixed band)7%
Payout ratio (FCF) · Returns40.0%100 (on a fixed band)4%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet63/100 · 2/3 factors with a value
  • Growth82/100 · 2/2 factors with a value
  • Quality65/100 · 3/3 factors with a value
  • Returns52/100 · 2/2 factors with a value
  • Valuation27/100 · 3/3 factors with a value

Memo

RTX CORPORATION (RTX). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 88.6 bn USD in 2025; YoY growth 9.7%; net margin 8.8%; ROE 12.6%; net debt/EBITDA -0.6x.

The estimated value range is 82.29–163.68 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 159.39 USD, the price of 203.82 USD leaves a potential of -21.8% (value / price − 1) and a margin of safety of -27.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 54/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 113.1%
  • Revenue CAGR 3Y: 9.7%
  • EPS CAGR 3Y: 12.3%
  • Net debt / EBITDA: -0.6x
  • Payout ratio (FCF): 40.0%

What contradicts it

  • Current ratio: 1.0x
  • P/E (TTM): 33.1x
  • EV/EBITDA: 17.0x
  • Shareholder yield (distributions): 1.4%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): Interest coverage.

Versus the vertical median

Aircraft Engines & Engine Parts (SIC 3724) · same industry (4-digit SIC) · compared with 5 companies

The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.

Multiples and returns vs the median

P/E
33.1x
vertical median 27.8x
above median (+19.0%)
EV/EBITDA
17.0x
vertical median 13.1x
above median (+29.1%)
P/S
2.9x
vertical median 1.8x
above median (+63.3%)
P/B
4.0x
vertical median 2.9x
above median (+39.3%)
ROE
12.6%
vertical median 12.3%
at median
Net margin
8.8%
vertical median 9.4%
below median (−7.4%)
EBIT margin
11.8%
vertical median 10.6%
above median (+11.4%)
Revenue YoY
9.7%
vertical median 15.8%
below median (−38.2%)
Net debt/EBITDA
-0.6x
vertical median 0.5x
below median (−212.4%)
Dividend yield
1.4%
vertical median 0.9%
above median (+55.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RTXRtx Corporation275.0 bn33.112.6%8.8%+9.7%+15% / +146%
HONHoneywell International Inc71.1 bn10.736.0%21.0%+7.8%+11% / +16%
HEIHeico Corporation9.1 bn56.118.7%16.4%+16.3%+7% / +97%
SAROStandardAero, Inc.8.5 bn26.612.3%5.1%+15.8%−2% / unavailable
TATTTat Technologies Ltd494.3 m27.811.7%9.4%+17.0%−1% / +293%
SIFSIFCO Industries, Inc.118.5 m29.610.3%4.0%+6.5%+201% / +452%

1- and 3-year price returns: for RTX from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
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Bull
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Estimated price (USD)

Estimated priceBearBaseBull
1 years
128.15
Total return -36% · Per year -36%
226.02
Total return 12% · Per year 12%
339.71
Total return 69% · Per year 69%
3 years
137.77
Total return -29% · Per year -11%
272.11
Total return 39% · Per year 11%
447.11
Total return 126% · Per year 31%
5 years
148.12
Total return -21% · Per year -5%
327.60
Total return 70% · Per year 11%
588.45
Total return 201% · Per year 25%
What moves the 3-year price the most
  • Exit P/E± 68.03
  • Net margin± 47.62
  • Annual revenue growth± 37.23
  • Annual dilution± 4.00

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

RTX Corporation is an aerospace and defense group with three segments: Collins Aerospace, Pratt & Whitney and Raytheon. In the third quarter of 2026 sales were 25.0 billion USD, up 11 percent, and backlog reached 340 billion USD 3. The company raised its 2026 outlook, with adjusted sales of 97.0-97.5 billion USD 3.

SWOT

Strengths

  • Broad aerospace and defense portfolio, with a record backlog and multi-year revenue coverage 31.
  • Strong aftermarket position, supported by long-term service agreements with airlines 1.
  • Geographic diversification, with a significant share of sales coming from international customers 1.

Weaknesses

  • Heavy reliance on U.S. government contracts, whose funding depends on the budget process 1.
  • Fixed-price contracts expose the company to unexpected costs and losses when overruns occur 12.
  • The Pratt & Whitney segment margin was lower than the other segments in the third quarter of 2026 3.

Opportunities

  • Additional defense funding and missile programs could support new contracts 1.
  • Rising air traffic and fleet growth could increase demand for service and upgrades 2.
  • New engines and hybrid-electric technologies could open future markets 1.

Threats

  • Changes in U.S. government budget or priorities could reduce orders 1.
  • Geopolitical tensions, sanctions and tariffs can disrupt supply chains 21.
  • Intense competition, including from companies backed by foreign governments, could limit gains 1.

Risks

  • Dependence on U.S. defense budgethigh

    Policy changes or budget delays can affect contracts and payments, and the source notes that spending levels are hard to predict 1.

  • Fixed-price contractshigh

    Cost overruns can produce losses, especially on development contracts, because the company bears the extra cost 1.

  • Supply chain disruptionmedium

    Shortages of components, microelectronics or rare earth materials can delay production and raise costs 2.

  • Currency and tariff exposuremedium

    Exchange rate moves and tariffs can influence margins, particularly for non-U.S. operations 1.

  • GTF engine powder metal mattermedium

    The accelerated inspections of the GTF fleet remain a source of uncertainty for Pratt & Whitney 2.

Investment thesis

What would need to be true (bull case)

  • If sales and margin growth from the third quarter continues, the company could reach its raised adjusted 2026 targets 3.
  • The record backlog and recent awards give visibility into future revenue 31.
  • Long-term aftermarket services could support cash flow over several years 1.

What would break the thesis

  • If the defense budget shifts or is delayed, government orders could slow 1.
  • Fixed-price contracts could produce unexpected losses if costs rise more than estimated 1.
  • Tariffs and trade tensions could compress margins if recoveries do not recur 23.

What to watch

  • Pratt & Whitney margin trend and the effect of IEEPA recoveriesQ4 2026
  • Conversion of backlog into revenue and new defense contracts2027
  • Effect of additional defense funding on orders2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

RTX Corporation provides advanced systems and services to commercial, military and government customers worldwide 1. Collins Aerospace makes aerospace and defense products, and Pratt & Whitney builds engines for commercial, military and business aircraft 1. Raytheon works on air and missile defense systems, munitions and sensors; U.S. government sales were 38 percent of the total in 2025 and international sales 47 percent 1.

Market context

RTX operates in markets shaped by air travel, defense budgets and global supply chains 1. Total backlog of 268 billion USD at the end of 2025 points to substantial future demand coverage 1. U.S. budget cycles and geopolitical tensions can change the pace of orders, as the official source notes 1.

Trends

  • Commercial aftermarket demandtailwind

    Higher service and spare-parts volumes support margins, especially for GTF engines and Collins, if air traffic stays robust 23.

  • U.S. defense budgettailwind

    Additional defense funding and programs such as Golden Dome could open new contracts, if the allocations are carried through 1.

  • Inflation and supply chain pressureheadwind

    Material costs and supply disruptions can weigh on fixed-price contracts and margins, especially if costs cannot be passed on to customers 2.

  • Tariffs and international trademixed

    Tariffs and countermeasures have mixed effects: they can raise costs, but the company partly offsets them through exemptions, and IEEPA recoveries appeared in 2026 13.

Competitive position

RTX's businesses compete with many U.S. and foreign companies, some with large financial resources and government research support 1. In aftermarket, rivals can offer discounts and performance guarantees, while new entrants with different technology models are appearing in defense 1.

  • U.S. and foreign aerospace and defense companies

    The source refers to U.S. and foreign competitors across all segments without naming them individually.

  • Aircraft engine manufacturers

    Engine competition targets OEM selections by customers and aftermarket parts and services.

  • Defense systems suppliers

    Defense competition includes companies developing sensor, communications and command systems.

  • Independent parts suppliers

    Customers may buy parts from suppliers other than the original equipment manufacturer, which affects parts sales.

News & filings

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / RTX Corporation · 06 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-09-30 · SEC / RTX Corporation · 20 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / RTX Corporation · 20 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.