RTX Corporation (RTX)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
$200.79-0.66%
Close 2026-09-04 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
Intact: The reason to own it still holds.
RTX grows revenue about 8% a year, hitting $93 billion in 2026. Profit per share rises to nearly $7. Free cash flow stays strong near $8.5 billion. The company leads in aerospace and defense technology.
If demand slows or profit margins shrink, RTX could miss its $6.8 EPS target. Rising costs or weaker cash flow would pressure the stock. Competition and geopolitical risks could hurt growth.
The price is about 25% above our fair value near $163. Analysts expect 7.5% revenue growth and EPS near $6.9 in 2026. Our view is slightly more cautious on valuation but aligned on growth.
Breaks if: EPS falls below $6.1 in FY26
Breaks if: Free cash flow falls below $7B in FY26
Breaks if: Revenue falls below $86 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable compounder with a focus on revenue growth and free cash flow. The current thesis state is intact, supported by recent earnings performance and management's consistent priorities.
The valuation appears justified, as RTX is seen as cheap compared to its peers. The market has a slight expectations gap, indicating that it is not overly optimistic about future performance.
Management is on track with priorities to increase revenue, maintain strong free cash flow, and improve adjusted earnings per share (EPS). Recent financial performance has been neutral, but the company has shown resilience in its sector.
The long-term thesis hinges on sector performance, particularly the actions of major players like SPCX, GE, and BA. Positive or negative earnings guidance from these companies could significantly impact RTX's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. RTX's recent earnings beat supports a positive outlook. The company raised its full-year sales guidance to between $95 billion and $96 billion. Additionally, RTX's backlog increased by 22% to $289 billion, indicating strong future demand.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
In summary, RTX's fundamentals are stable, but the company faces moderate risks from sector dynamics. Not investment advice.