RTX barely moved today but is on a five-day winning streak that has pushed the stock to a new all-time high. We think this is mostly the market digesting a string of recent billion-dollar contract wins and a raised profit outlook from late July.
Our view
The business is finally moving past its recent engine repair hurdles and is seeing record demand for both commercial flight parts and defense systems. If you already own it, there is nothing to do here but sit tight and let the massive backlog of orders turn into cash over the coming years.
Oil prices rise as Iran proposes shipping restrictions
Oil prices climbed after Iranian state news shared a plan to set new conditions for ships moving through the Strait of Hormuz. This narrow waterway is a critical chokepoint for the world's energy supply.
For a defense giant like RTX, rising energy prices and regional instability can be a double-edged sword. While higher fuel costs can strain the budgets of its airline customers, increased tension in the Middle East often leads to higher demand for the missile defense systems and munitions that RTX builds.
New radar array installed for Navy destroyer upgrades
Raytheon completed the installation of a new radar array at a test site in Virginia. This is a key step in the U.S. Navy's plan to modernize its fleet of Flight IIA Destroyers with more advanced sensors. This installation shows steady progress on the SPY-6 program, which is a major part of the company's defense backlog. Successfully hitting these testing milestones helps ensure that RTX can keep converting its large pile of signed government orders into actual revenue.
Pratt & Whitney wins $1.3 billion engine parts contract
Pratt & Whitney was awarded a $1.3 billion contract to supply spare parts for the F135 engine, which powers the F-35 Lightning II fighter jet. This deal focuses on sustainment, which means keeping existing engines in the air through maintenance and replacement components.
This contract reinforces the company's role as the sole provider for one of the military's most important aircraft programs. For long-term owners, these types of service and parts deals are valuable because they provide steady, high-margin income that lasts for decades after the initial engine sale.
Argus Research raised its price target for the stock to $245, up from $230. This adjustment follows the company's recent quarterly report, which showed stronger sales and an improved outlook for the rest of the year. The higher target reflects confidence that RTX is successfully managing its production rates and capturing high demand in both its commercial aviation and defense businesses.
Jefferies raised its price target for RTX to $250, a roughly 14 percent increase from its previous target. The firm pointed to the company's ability to grow sales in both its commercial and defense segments as a reason for the move.
This target is notably higher than the current stock price and reflects a view that the company's massive backlog of orders is becoming more valuable as production issues from previous years begin to fade.
Analysts recently raised their price targets for RTX following a flurry of activity in late July. Most analysts, 17 of 26, rate the stock a buy, and the average target of $239 suggests about 7% upside from today's price.
Average target$238.50+7%vs $223.25 today
TodayAvg price
Low $215High $250
Buy26 analysts
0Bearish
9Neutral
17Bullish
FirmRatingPrice TargetDate
Bernstein
Market Perform
$232
8/3/2026
Argus Research
—
$230→$245
7/30/2026
Deutsche Bank
Buy
$228→$238
7/27/2026
Jefferies
Buy
$220→$250
7/26/2026
RBC Capital
Outperform
$230→$250
7/24/2026
Susquehanna
Positive
$235→$245
7/24/2026
Robert W. Baird
Outperform
$225→$240
7/24/2026
Morgan Stanley
Overweight
$220→$240
7/24/2026
UBS
Neutral
$198→$215
7/24/2026
Wells Fargo
Equal Weight
$200→$230
7/24/2026
Jefferies
Buy
$220
6/4/2026
Deutsche Bank
Buy
$240
3/5/2026
RTX Corporation earnings
Management has beaten analyst profit targets for eight straight quarters. They have a clear habit of setting a bar they can reliably clear even as they ramp up production.
Earnings history
EstimateBeatMiss
RTX Corporation past earnings results
Expected
Actual
Surprise
EPS
$1.66
$1.89
+13.9%
Revenue
$22.89B
$24.71B
+7.9%
Key highlights
Strong demand boosting backlog: The company's total backlog, which is the value of signed orders for future work, grew to $289 billion. This represents a 22% increase over the prior year and provides clear visibility for the next several years of production.
Aftermarket growth driving profits: Commercial aftermarket sales, meaning the money made from servicing and providing parts for existing planes, grew 25% at the Pratt Whitney division and 10% at Collins Aerospace. These high margin services helped push overall adjusted profit up 21% to $1.89 per share.
Defense margins holding steady: The Raytheon defense segment saw its operating margin, the percentage of revenue left after paying for the costs of doing business, rise to 12.6%. This is an improvement from 11.6% a year ago and was driven by higher volume on systems like the Patriot missile.
Full year outlook raised: Management raised its 2026 revenue forecast to a range of $95.0 billion to $96.0 billion, up from the previous high of $93.5 billion. They also increased the expected free cash flow for the year to a range between $8.50 billion and $8.75 billion.
Our take: A very strong quarter that shows RTX is successfully managing its massive workload. The double-digit growth in both commercial repairs and defense orders confirms that demand is high across the whole business. This performance reinforces the long-term case for the company as it turns its huge backlog into growing cash flows.
RTX Corporation’s next earnings date
Q3 2026
OCT
20
Expectation
EPS
$1.75
Revenue
$24.00B
AUG
14
Dividend payday
Own the stock before this date to get the next dividend payment.
Metrics we are tracking
Metric
Expectations
Status
Total Backlog
Staying above $260 billion to ensure multi-year visibility
$289 billion in Q2 2026
Commercial Aftermarket Growth
Growing at 7% or higher annually
25% at Pratt Whitney and 10% at Collins in Q2 2026
Free Cash Flow
Reaching $8.25 billion to $8.75 billion for FY2026
