RTX Corporation is a global aerospace and defense company providing advanced systems and services to commercial, military, and government customers. It operates through three segments: Collins Aerospace, offering technologically advanced aerospace and defense products and aftermarket services; Pratt & Whitney, supplying aircraft engines for various aviation sectors; and Raytheon, specializing in defensive and offensive threat detection, integrated air and missile defense, and advanced sensors.
Business segments
10-K
Collins AerospacePratt & WhitneyRaytheon
Recent News
Loading news...
Earnings call: Q2 2026 2026
Intel
Free
Jul 23, 2026Confident
Greg Hayes (Chairman & Chief Executive Officer), Neil Mitchill (Senior Vice President & Chief Financial Officer)
Key metrics
Q2 2026 adjusted EPS was $1.82 versus consensus of $0.85, a 114% upside surprise, driven by stronger segment profit and lower interest expense. Revenue modestly missed expectations (exact figure not disclosed in the summary), with commercial aerospace moderating but defense remaining strong; segment operating profit grew year-over-year and the comp
Forward guidance
Management reaffirmed full-year 2026 sales and EPS guidance despite Q2 revenue coming in slightly below expectations, citing strong backlog and visibility into second-half defense and commercial deliveries. They highlighted continued expectations for full-year organic sales growth in the high single to low double digits, margin expansion across all
Notable Q&A
Analysts pressed management on the sustainability of the EPS beat given the revenue shortfall; leadership responded that the upside was primarily driven by execution, mix, and cost productivity rather than one-time items, and that they expect a more balanced contribution from both revenue growth and
Surprise items
The magnitude of the EPS beat versus consensus (over 100% upside) was a notable positive surprise, especially given that revenue slightly missed expectations. Management’s decision to maintain full-year guidance despite the revenue shortfall signaled confidence in second-half execution and could be
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$88,603 million
9.74% YoY
Operating margin
10.5%
Net income
$6,732 million
Free cash flow
$7,940 million
Dividend / share
$2.670
Total debt
$37,904 million
Cash: $7,435 million
Earnings quality:LOW
Recurring revenue:28%
Cash conversion:1.5x
Non-recurring items: Gain on sale of actuation and flight control business ($0.2 billion), Gain on sale of Simmonds Precision Products business ($0.1 billion), Pension settlement charge ($0.3 billion), Restructuring charges ($0.2 billion)
Confidence 6.5 / 10 · 50% model agreement ·
Scheduled Jun 07, 2026
RTX is trading ~16% below its 52-week high and ~15% below the consensus analyst price target of $215.73, having been pressured by tariff headwinds (~$850M full-year impact), defense sector rotation, and ceasefire-related sentiment — not fundamental deterioration. The underlying business is executing exceptionally: Q1 2026 EPS of $1.78 beat by ~18%, organic sales grew 10%, Raytheon's book-to-bill hit 1.48x, and the total backlog has grown to ~$271B. With Forward P/E at ~23.9x contracting toward more reasonable territory and a recent Jefferies upgrade to Buy with a $220 target, the risk/reward over 5 trading days tilts modestly bullish as macro sentiment around tariffs and geopolitics stabilizes.
Strongest bull case
Massive and growing $271B backlog — including $107B+ in defense with Raytheon's 1.48x book-to-bill and urgent Tomahawk/AMRAAM replenishment demand from the Iran conflict — provides multi-year revenue visibility that the current depressed price does not reflect; a recent Jefferies upgrade to Buy ($220 PT) adds near-term positive catalyst momentum.
Strongest bear case
RTX disclosed ~$850M in full-year 2026 tariff cost absorption under IEEPA, and the Pratt & Whitney GTF engine crisis continues to generate ~$1M loss per new engine delivery with multi-billion dollar cash drag projected through 2027, creating persistent margin compression that could weigh on sentiment if Q2 pre-announcements surface any negative revisions.
What the market may be missing
The defense sector sold off on 'Iran ceasefire hopes' narratives, but RTX's Raytheon segment is booking orders at 1.48x book-to-bill — meaning geopolitical de-escalation doesn't eliminate the years-long munitions replenishment cycle already locked into backlog; the market is conflating short-term sentiment with multi-year contractual obligations already on the books.
Mr. Christopher T. Calio J.D. (CEO) · RTX Corporation
Calio highlighted RTX's record $271 billion backlog (up 25% year-over-year) and announced over $10.5 billion in 2026 CapEx and R&D investments to expand manufacturing capacity. He outlined three strategic priorities: execution, innovation, and scale,
“"our record $271 billion backlog" and RTX remains focused in 2026 on three priorities: "executing on our commitments, innovating for future growth, and leveraging our breadth and scale."”
Mr. Christopher T. Calio J.D. (CEO) · RTX Corporation
Calio discussed RTX's strong Q1 2026 performance with double-digit organic sales and earnings growth across all three segments, driven by execution focus and backlog delivery. The company raised 2026 outlook for adjusted sales and adjusted EPS while
“"RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments, driven by our continued focus on execution and delivering our backlog."”
CEO letter to shareholders
Signal
No shareholder letter on file for RTX
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Neil G. Mitchill, Jr.
Executive Vice President & Chief Financial Officer
$10,607,402
Philip J. Jasper
President, Raytheon
$6,745,831
Shane G. Eddy
President, Pratt & Whitney
$6,611,393
Troy D. Brunk
President, Collins Aerospace
$5,891,818
Source: DEF 14A proxy statement · 2026-03-09
Governance
Pro
Dual-class shares:No
Poison pill:No
Clawback policy:Yes
Stock ownership req.:Yes
Shareholder proposals
Election of Ten Director Nominees
FOR
Pending
Advisory Vote to Approve Executive Compensation
FOR
Pending
Appointment of PricewaterhouseCoopers LLP to Serve as Independent Auditor for 20
Risk increasing — The Powder Metal Matter impacting Pratt & Whitney's GTF fleet, requiring acceler
Mgmt narrative
Management tone: Cautious
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jun 07, 2026
BULLISH
6.5/10
50%
RTX is trading ~16% below its 52-week high and ~15% below the consensus analyst price target of $215...
$180.99
Sched.
May 31, 2026
NEUTRAL
6.3/10
75%
RTX has exceptional operational momentum — a $271B backlog, book-to-bill of 1.56, Q1 2026 EPS beat o...
$179.66
Sched.
May 24, 2026
NEUTRAL
6.4/10
75%
RTX has genuine fundamental strength — a $268B backlog, raised FY2026 EPS guidance to $6.70–$6.90, a...
$177.01
Sched.
May 17, 2026
NEUTRAL
6.5/10
75%
RTX has exceptional fundamental underpinnings — a $271B record backlog, a Q1 2026 EPS beat of 17% vs...
$171.18
Sched.
May 10, 2026
NEUTRAL
6.5/10
50%
RTX delivered a strong Q1 2026 beat — EPS of $1.78 vs. $1.51 consensus, 10% organic growth, record $...
$176.09
Sched.
May 03, 2026
NEUTRAL
6.4/10
75%
RTX delivered a strong Q1 2026 beat (EPS $1.78 vs. $1.51 estimate, +21% YoY) and raised full-year gu...
$173.99
Sched.
May 01, 2026
NEUTRAL
6.3/10
100%
RTX has outstanding fundamental credentials — a $271B backlog, consistent beat-and-raise earnings, a...
$175.01
Sched.
Apr 12, 2026
BULLISH
7.3/10
75%
RTX enters Q1 2026 earnings on April 21 with a record $268B backlog, a freshly awarded $50B Patriot ...
$201.56
Sched.
Showing last 8 signals
RTXRTX Corporation
Signal
FY2026 annual report (10-K filed 2026-02-06)
INCOME STATEMENT
?Revenue
$88,603 million9.74% YoY
Total sales from manufacturing, defense contracts, equipment, transportation, and industrial services. Up 9.74% from last year.
?Operating income
$9,300 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 10.5%, meaning 10 cents of every dollar of revenue becomes operating profit.
?Net income
$6,732 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 9.3%. Note: results include non-recurring items (gain on sale of actuation and flight control business ($0.2 billion), gain on sale of simmonds precision products business ($0.1 billion)) that may not repeat.
?Free cash flow
$7,940 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$1.51
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$2.670
Cash paid to shareholders each year for every share they own. Industrial dividends tend to grow with economic expansion and infrastructure spending.
BALANCE SHEET
?Total assets
$170.4B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes factories, fleet vehicles, defense contracts, and heavy machinery.
?Cash & equivalents
$7,435 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$37,904 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $7,435 million in cash against this debt.
?Shares outstanding
1,356,400,000
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
CASH FLOW
?Operating cash flow
$1.9B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$546M
Money spent on long-term assets — factories, heavy equipment, fleet vehicles, and defense facilities. This is the cost of maintaining and growing the business.
?Free cash flow
$1.3B
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
EARNINGS QUALITY
?Accrual quality
LOW
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Recurring revenue
28%
28% of revenue comes from repeat sources — ongoing contracts, subscriptions, or regular customer purchasing patterns rather than one-time sales. Higher recurring revenue means more predictable future earnings.
?Cash conversion
1.5x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.5x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
4 identified
One-time items that affect the bottom line but won't repeat: gain on sale of actuation and flight control business ($0.2 billion), gain on sale of simmonds precision products business ($0.1 billion), pension settlement charge ($0.3 billion), restructuring charges ($0.2 billion). When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
The Powder Metal Matter impacting Pratt & Whitney's GTF fleet, requiring accelerated inspections, increasing aircraft on ground levels, and incurring significant customer support and mitigation costs, with potential for further impacts if other engine models are affected. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
8.24%
WACC
5.15%
🟢 VALUE CREATOR — EVA Spread: 3.09%
?WACC
5.15%
Weighted Average Cost of Capital — the minimum return RTX Corporation must earn on its investments to satisfy both debt holders and shareholders. Computed from a 87.29% equity / 12.71% debt capital structure. If the company earns less than 5.15% on its invested capital, it is destroying shareholder value.
?Cost of equity
5.89%
The return shareholders demand for holding RTX stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.30) × Equity Risk Premium (5.50%). A beta of 0.30 means RTX is less volatile than the overall market.
?Cost of debt (after-tax)
0.08%
What RTX Corporation effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 18.29%.
?Capital structure
E: 87.29% / D: 12.71%
How RTX Corporation finances its operations — the split between equity (stock market value: $260.4B) and debt (total borrowings: $37.9B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
8.24%
Return on Invested Capital — how efficiently RTX Corporation turns its total invested capital into after-tax operating profit. NOPAT ($8.0B) ÷ Invested Capital ($97.4B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$3.0B
Economic Value Added — the dollar amount of value RTX Corporation created (or destroyed) above its cost of capital. NOPAT ($8.0B) minus the capital charge (Invested Capital × WACC = $5.0B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$8.0B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($9.8B) × (1 - Tax Rate 18.29%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jun 07, 2026.