Upside case
Bull case
$296+59.6%
RTX would need investors to value it at roughly 43x earnings — about 16x more generous than today's 27x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
RTX Corporation (RTX) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
26
analysts
18 bullish · 0 bearish · 26 covering RTX
Strong Buy
0
Buy
18
Hold
8
Sell
0
Strong Sell
0
Consensus Target
$224
+20.9% vs today
Scenario Range
$142 – $296
Model bear to bull value window
Coverage
26
Published analyst ratings
Valuation Context
26.7x
Forward P/E · Market cap $249.9B
RTX price targets
Three scenarios for where RTX stock could go
Current
~$186
Confidence
52 / 100
Updated
Jun 18, 2026
Where we are now
Current · $186
Bear
$142
Base
$225
Bull
$296
Market caseClosest to today
Base case
$225+21.2%
At 32x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$142-23.7%
If investor confidence fades or macro conditions deteriorate, a 6x multiple contraction could push RTX down roughly 24% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
RTX Corporation
RTX · NYSEIndustrialsAerospace & DefenseDecember year-end
RTX Corporation is a major aerospace and defense company that designs and manufactures advanced systems for commercial aviation, military, and government customers. It generates revenue primarily through three segments: Collins Aerospace (aircraft systems and interiors), Pratt & Whitney (aircraft engines), and Raytheon (missiles and defense systems) — with each contributing roughly one-third of total sales. The company's competitive advantage lies in its deep technological expertise, long-term defense contracts, and extensive aftermarket services that create recurring revenue streams.
Market Cap
$249.9B
Revenue TTM
$90.4B
Net Income TTM
$7.3B
Net Margin
8.0%
RTX Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+9.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.56/$1.44
Revenue
$21.6B/$20.6B
Q4 2025
EPS
$1.70/$1.41
Revenue
$22.5B/$21.3B
Q1 2026
EPS
$1.55/$1.47
Revenue
$24.2B/$22.7B
Q2 2026
EPS
$1.78/$1.51
Revenue
$22.1B/$21.5B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.56/$1.44 | +8.3% | $21.6B/$20.6B | +4.6% |
| Q4 2025 | $1.70/$1.41 | +20.6% | $22.5B/$21.3B | +5.5% |
| Q1 2026 | $1.55/$1.47 | +5.4% | $24.2B/$22.7B | +6.8% |
| Q2 2026 | $1.78/$1.51 | +17.9% | $22.1B/$21.5B | +2.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$95.8B
+6.0% YoY
FY2
$101.8B
+6.3% YoY
EPS Outlook
FY1
$5.85
+9.9% YoY
FY2
$6.08
+4.0% YoY
Trailing FCF (TTM)$8.4B
FCF Margin: 9.2%
Next Earnings
July 28, 2026
Expected EPS
$1.66
Expected Revenue
$22.9B
RTX beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
RTX Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $91.2B
Product Mix
Latest annual revenue by segment or product family
Pratt and Whitney
36.1%
+17.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Geographic Distribution, Domestic
64.4%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Pratt and Whitney is the largest disclosed segment at 36.1% of FY 2025 revenue, up 17.3% YoY.
Geographic Distribution, Domestic is the largest reported region at 64.4%, with no year-over-year comparison yet.
RTX Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $141 — implies -24.2% from today's price.
Premium to Fair Value
24.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RTX
37.4x
vs
S&P 500
24.4x
+53% premium
vs Industrials Trailing P/E
RTX
37.4x
vs
Industrials
25.6x
+46% premium
vs RTX 5Y Avg P/E
Today
37.4x
vs
5Y Average
34.0x
+10% premium
Forward PE
26.7x
S&P 500
18.8x
+42%
Industrials
21.2x
+26%
5Y Avg
—
—
Trailing PE
37.4x
S&P 500
24.4x
+53%
Industrials
25.6x
+46%
5Y Avg
34.0x
+10%
PEG Ratio
—
S&P 500
1.66x
—
Industrials
1.65x
—
5Y Avg
—
—
EV/EBITDA
21.9x
S&P 500
15.2x
+44%
Industrials
13.9x
+58%
5Y Avg
19.7x
+11%
Price/FCF
31.5x
S&P 500
20.7x
+52%
Industrials
20.0x
+57%
5Y Avg
30.5x
+3%
Price/Sales
2.8x
S&P 500
3.1x
-9%
Industrials
1.6x
+81%
5Y Avg
2.1x
+31%
Dividend Yield
1.42%
S&P 500
1.91%
-26%
Industrials
1.21%
+17%
5Y Avg
2.11%
-33%
| Metric | RTX | S&P 500 | Industrials | 5Y Avg RTX |
|---|---|---|---|---|
| Forward PE | 26.7x | 18.8x+42% | 21.2x+26% | — |
| Trailing PE | 37.4x | 24.4x+53% | 25.6x+46% | 34.0x+10% |
| PEG Ratio | — | 1.66x | 1.65x | — |
| EV/EBITDA | 21.9x | 15.2x+44% | 13.9x+58% | 19.7x+11% |
| Price/FCF | 31.5x | 20.7x+52% | 20.0x+57% | 30.5x |
| Price/Sales | 2.8x | 3.1x | 1.6x+81% | 2.1x+31% |
| Dividend Yield | 1.42% | 1.91% | 1.21% | 2.11% |
RTX trades above S&P 500 benchmarks on 4 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolRTX Financial Health
Verdict
Strong
RTX generates $8.4B in free cash flow at a 9.2% margin — returns 1.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$90.4B
Revenue Growth
TTM vs prior year
+10.6%
Gross Margin
Gross profit as a share of revenue
20.2%
Operating Margin
Operating income divided by revenue
10.4%
Net Margin
Net income divided by revenue
8.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$5.32
Free Cash Flow (TTM)
Cash generation after capex
$8.4B
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
6.7%
ROA
Return on assets, trailing twelve months
4.3%
Cash & Equivalents
Liquid assets on the balance sheet
$7.4B
Net Debt
Total debt minus cash
$32.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.8× FCF
~3.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
10.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.4%
Dividend
1.4%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$50M
Dividend / Share
Annualized trailing dividend per share
$2.63
Payout Ratio
Share of earnings distributed as dividends
53.1%
Shares Outstanding
Declining as buybacks retire shares
1.3B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageRTX Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Valuation Concerns
RTX trades near all-time highs with a $261B market cap, raising risks of overvaluation and potential de-rating.
High Risk
Supply Chain Risks
Lingering supply chain hurdles could impact RTX's ability to meet demand and convert backlog efficiently.
Medium
Engine Reliability
The 'Advantage' engine's reliability data remains a key monitorable for RTX's operational health.
Medium
Analyst Sentiment
Mixed analyst ratings (13 Buy, 6 Hold, 3 Sell) reflect uncertainty about RTX's near-term performance.
Lower
Backlog Conversion
Delays in converting backlog to revenue could pressure financial results in the second half of 2026.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why RTX Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
Diverse defense and aerospace portfolio
RTX's extensive product range, including aircraft engines, avionics, guided missiles, and drones, positions it as a key player in defense and aerospace, benefiting from sustained military demand.
Advanced radar and hypersonic capabilities
The company's leadership in advanced radar systems, drone defense, and hypersonic missile technologies drives growth amid increasing global defense needs.
Strong financial performance
RTX's Q1 2026 results exceeded estimates, with upward revisions to revenue and EPS guidance, reflecting broad-based strength across its core segments.
AI and GPU technology integration
RTX's collaboration with NVIDIA and its AI-enhanced GPUs supports innovation in gaming, productivity, and development, leveraging cutting-edge AI processors.
Wide economic moat
The company's entrenched position as a large military contractor and its technological edge in aerospace and defense create a durable competitive advantage.
Positive stock momentum
RTX's stock has appreciated significantly, driven by successful execution of its growth thesis, including defense demand and technological advancements.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
RTX Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$185.60
52W Range Position
61%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$140.47
+32.1% from the low
52-Week High
$214.50
-13.5% from the high
1 Month
+5.48%
3 Month
-9.27%
YTD
-0.9%
1 Year
+27.2%
3Y CAGR
+23.8%
5Y CAGR
+16.7%
10Y CAGR
+12.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
RTX vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
26.7x
vs 17.9x median
+50% above peer median
Revenue Growth
+6.0%
vs +4.8% median
+25% above peer median
Net Margin
8.0%
vs 6.4% median
+26% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RTX RTX RTX Corporation | $249.9B | 26.7x | +6.0% | 8.0% | Buy | +20.9% |
LMT LMT Lockheed Martin Corporation | $117.8B | 17.1x | +4.8% | 6.4% | Buy | +24.3% |
NOC NOC Northrop Grumman Corporation | $74.1B | 18.7x | +4.0% | 10.8% | Buy | +40.7% |
GD GD General Dynamics Corporation | $94.7B | 21.0x | +5.4% | 8.1% | Buy | +17.5% |
BA BA The Boeing Company | $175.6B | — | +7.8% | 2.5% | Buy | +26.4% |
HII HII Huntington Ingalls Industries, Inc. | $11.2B | 16.5x | +4.4% | 4.7% | Hold | +47.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
RTX Dividend and Capital Return
RTX returns 1.4% total yield, led by a 1.42% dividend, raised 33 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.4%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.42%
Payout Ratio
53.1%
How RTX Splits Its Return
Div 1.42%
Dividend 1.42%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.63
Growth Streak
Consecutive years of dividend increases
33Y
3Y Div CAGR
7.3%
5Y Div CAGR
7.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$50M
Estimated Shares Retired
269.4K
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.3B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.41 | — | — | — |
| 2025 | $2.67 | +7.7% | 0.0% | 1.5% |
| 2024 | $2.48 | +6.9% | 0.3% | 2.4% |
| 2023 | $2.32 | +7.4% | 10.7% | 13.3% |
| 2022 | $2.16 | +7.7% | 1.9% | 4.0% |
FAQ
7 questionsRTX Investor Questions
Common questions answered from live analyst data and company financials.
01Is RTX Corporation (RTX) stock a buy or sell in 2026?
RTX Corporation (RTX) is rated Buy by Wall Street analysts as of 2026. Of 26 analysts covering the stock, 18 rate it Buy or Strong Buy, 8 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $224, implying +20.9% from the current price of $186. The bear case scenario is $142 and the bull case is $296.
02What is the RTX stock price target for 2026?
The Wall Street consensus price target for RTX is $224 based on 26 analyst estimates. The high-end target is $240 (+29.3% from today), and the low-end target is $204 (+9.9%). The base case model target is $225.
03Is RTX Corporation (RTX) stock overvalued in 2026?
RTX trades at 26.7x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for RTX Corporation (RTX) stock in 2026?
The primary risks for RTX in 2026 are: (1) Valuation Concerns — RTX trades near all-time highs with a $261B market cap, raising risks of overvaluation and potential de-rating. (2) Supply Chain Risks — Lingering supply chain hurdles could impact RTX's ability to meet demand and convert backlog efficiently. (3) Engine Reliability — The 'Advantage' engine's reliability data remains a key monitorable for RTX's operational health. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is RTX Corporation's revenue and earnings forecast?
Analyst consensus estimates RTX will report consensus revenue of $95.8B (+6.0% year-over-year) and EPS of $5.85 (+9.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $101.8B in revenue.
06When does RTX Corporation (RTX) report its next earnings?
RTX Corporation is expected to report its next earnings on approximately 2026-07-28. Consensus expects EPS of $1.66 and revenue of $22.9B. Over recent quarters, RTX has beaten EPS estimates 100% of the time.
07How much free cash flow does RTX Corporation generate?
RTX Corporation (RTX) generated $8.4B in free cash flow over the trailing twelve months — a free cash flow margin of 9.2%. RTX returns capital to shareholders through dividends (1.4% yield) and share repurchases ($50M TTM).