RTX Corporation (RTX)
Industrials · $257B market cap · SEC CIK 0000101829
fundamentals score out of 100
Next reports on Oct 19, 2026, before the open, with analysts expecting $1.78 in earnings per share.
The case for RTX
- Revenue growing 11.8% year over year.
- Pays a 3.0% dividend while you wait.
- Moves less than the market (beta 0.30).
The case against
- Pricey at 33.3× earnings, against a long-run market average nearer 20×.
- Profitability is weak (32/100): return on equity 12%, net margin 8.3%, gross margin 20%, 118% of profit turned to cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 49 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 74 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 32 |
| Momentumhow the price has behaved lately | 61 |
| Stabilityhow violently it moves, what it owes and what it pays you | 86 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 33.3× |
|---|---|
| Price / book | 3.85× |
| Price / sales | 2.8× |
| Revenue growth (YoY) | +11.8% |
| EPS growth (YoY) | +24.8% |
| Gross margin | 20% |
| Operating margin | 11% |
| Net margin | 8% |
| Return on equity | 12% |
| Debt / equity | 0.56× |
| Current ratio | 1.01 |
| Dividend yield | 2.95% |
| Beta | 0.30 |
| 52-week range | $155.64 – $226.88 |
| Position in that range | 50% of the way up |
| 3-month return | +4.7% |
| 1-year return | +22.8% |
Five years of financials, as filed
Pulled from RTX Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $88.6B | $80.7B | $68.9B | $67.1B | $64.4B |
| Operating income | $9.3B | $6.5B | $3.6B | $5.5B | $5.1B |
| Net income | $6.7B | $4.8B | $3.2B | $5.2B | $3.9B |
| Operating cash flow | $10.6B | $7.2B | $7.9B | $7.2B | $7.1B |
| Capital expenditure | $2.6B | $2.6B | $2.4B | $2.3B | $2.1B |
| Total assets | $171B | $163B | $162B | $159B | $161B |
| Total liabilities | $104B | $101B | $100B | $84.7B | $86.7B |
| Shareholder equity | $65.2B | $60.2B | $59.8B | $72.6B | $73.1B |
| Cash | $7.4B | $5.6B | $6.6B | $6.2B | $7.8B |
| Long-term debt | — | $41.1B | $43.6B | $31.3B | $31.4B |
| Free cash flow | $7.9B | $4.5B | $5.5B | $4.9B | $5.0B |
| Operating margin | 10.5% | 8.1% | 5.2% | 8.2% | 8.0% |
| Net margin | 7.6% | 5.9% | 4.6% | 7.7% | 6.0% |
| Diluted shares | 1.4B | 1.3B | 1.4B | 1.5B | 1.5B |
Share count is down 10.1% over 4 years. Buybacks have been shrinking the pie.
What RTX Corporation says it does
RTX Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military, and government customers worldwide. The terms "we," "us," "our," the "Company", and "RTX" mean RTX Corporation and its subsidiaries, unless the context indicates another meaning. We serve commercial and government customers in both the original equipment and aftermarket parts and services segments of the aerospace industry. Our defense business serves both domestic and international customers as a prime contractor or subcontractor on a broad portfolio of defense and related programs for military and government customers. RTX Corporation was incorporated in Delaware in 1934. The following description of our business should be read in conjunction with "Management’s Discussion and Analysis of Financial Condition and Results of Operations" within Item 7 of this Form 10-K, including the information contained therein…
Risk factors RTX lists in its 10-K
- Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity, and overall business
- We face risks relating to our U.S. government contracts and programs, including the mix of our U.S. government contracts and programs, our performance, and our ability to control costs
- Our international business is subject to economic, regulatory, competition, and other risks
- Geopolitical factors and changes in policies and regulations could adversely affect our business
- Our financial performance is dependent on the condition of the aerospace industry
- We design, manufacture, and service products that incorporate advanced technologies; the introduction of new products and technologies involves risks, and we may not realize the degree or timing of benefits initially anticipated
- Competition may reduce our revenues and margins and limit our future opportunities
- Our business and financial performance may be adversely affected by cyber-attacks on information technology (IT) infrastructure and products, as well as changes in cybersecurity regulations
- Due to the nature of our products and services, a product safety failure, quality issue, or other failure affecting our or our customers’ or suppliers’ products or systems could seriously harm our business
- We depend on the recruitment and retention of qualified personnel, and our failure to attract, train, and retain such personnel could seriously harm our business
- Exports and imports of certain of our products are subject to various export control, sanctions, and import regulations and may require authorization from regulatory agencies of the U.S. or other countries
- As a U.S. government contractor, we are subject to risks relating to U.S. government audits, investigations, and disputes
- A violation by Raytheon Company or the Company of any one of the deferred prosecution agreements or Securities and Exchange Commission (SEC) administrative order announced on October 16, 2024 could adversely affect our business
- We are subject to litigation, environmental, anti-corruption, and other legal and compliance risks