RTX (NYSE:RTX) Shares Down 1.9% - Here's Why

Key Points

• RTX shares fell 1.9% to about $191 during Friday’s trading, despite strong recent operating results and increased investor attention.
• The company reported quarterly EPS of $2.26, well above the $1.78 estimate, with revenue up 11.1% year over year to roughly $24.97 billion. RTX also raised its 2026 EPS guidance to $7.65–$7.75 and revenue outlook to $97.0–$97.5 billion.
• Growth is supported by strong aerospace demand, record backlogs and a $350 million Raytheon defense contract, but elevated valuation, margin pressure, paused buybacks and recent insider selling remain risks. Wall Street’s consensus rating is “Moderate Buy,” with an average price target of $227.12.

Shares of RTX Corporation (NYSE:RTX - Get Free Report) fell 1.9% during mid-day trading on Friday. The stock traded as low as $189.28 and last traded at $191.1040. 5,191,636 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 5,358,939 shares. The stock had previously closed at $194.71.

Trending Headlines about RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raised 2026 guidance: RTX increased its FY2026 adjusted EPS outlook to $7.65–$7.75, above the prior consensus estimate of $7.25, and raised revenue guidance to $97.0–$97.5 billion versus the $96.2 billion consensus. The upgrade signals confidence in demand across its aerospace and defense businesses.
• Positive Sentiment: Strong quarterly performance and backlog: RTX reported quarterly EPS of $2.26, exceeding the $1.78 analyst estimate, while revenue rose 11.1% year over year to $24.97 billion. Coverage also highlights record backlogs, broad-based operating strength and improved cash flow. RTX Corporation Earnings Call Signals Broad-Based Strength
• Positive Sentiment: Defense contract win: Raytheon received a $350 million U.S. Air Force contract modification, adding to RTX’s defense backlog and providing further revenue visibility. RTX's Raytheon Secures $350 Million US Air Force Contract Modification
• Positive Sentiment: Commercial aerospace growth: Analysts point to sustained demand for aircraft replacement parts, repairs, engines and avionics upgrades. Collins Aerospace’s planned 2027 radio-altimeter upgrades could create a fleetwide service opportunity as operators address new FAA requirements and 5G-interference standards. What Does RTX Altimeter Upgrade Push Mean For Business Aviation?
• Neutral Sentiment: Analyst estimates edged higher: Erste Group raised its FY2026 EPS forecast to $7.30 from $7.25 and its FY2027 forecast to $7.90 from $7.87. The revisions are positive but remain below the current full-year consensus of $7.72 for FY2026. Are RTX Corporation and Northrop Grumman Ready to Break Out?
• Negative Sentiment: Valuation and execution risks: RTX trades at a relatively elevated earnings multiple, while coverage notes margin pressure and paused share buybacks. Those factors could encourage profit-taking despite stronger guidance and backlog growth.

Wall Street Analysts Forecast Growth

RTX has been the subject of a number of research analyst reports. The Goldman Sachs Group raised their target price on RTX from $195.00 to $206.00 and gave the company a "neutral" rating in a report on Monday, July 27th. Morgan Stanley reissued an "overweight" rating and set a $240.00 price target (up from $220.00) on shares of RTX in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft lowered shares of RTX from a "buy" rating to a "hold" rating and set a $208.00 price objective for the company. in a research note on Tuesday, October 13th. Robert W. Baird set a $240.00 price objective on shares of RTX in a report on Friday, July 24th. Finally, Royal Bank Of Canada cut their target price on shares of RTX from $250.00 to $235.00 and set an "outperform" rating on the stock in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, RTX currently has a consensus rating of "Moderate Buy" and an average price target of $227.12.

RTX Stock Down 1.9%

The company has a current ratio of 1.05, a quick ratio of 0.78 and a debt-to-equity ratio of 0.44. The company has a market cap of $257.88 billion, a price-to-earnings ratio of 31.02, a PEG ratio of 2.31 and a beta of 0.31. The firm's fifty day simple moving average is $197.32 and its 200 day simple moving average is $193.64.

RTX (NYSE:RTX - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The company reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.48. The business had revenue of $24.96 billion for the quarter, compared to analyst estimates of $24.11 billion. RTX had a net margin of 8.75% and a return on equity of 14.89%. The company's revenue was up 11.1% on a year-over-year basis. During the same period last year, the business earned $1.70 EPS. Sell-side analysts predict that RTX Corporation will post 7.72 earnings per share for the current year.

Insider Transactions at RTX

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $223.92, for a total value of $3,057,627.60. Following the transaction, the executive vice president owned 13,184 shares in the company, valued at approximately $2,952,161.28. This represents a 50.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Kevin G. Dasilva sold 2,250 shares of the firm's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $216.93, for a total value of $488,092.50. Following the sale, the vice president directly owned 20,099 shares in the company, valued at $4,360,076.07. This trade represents a 10.07% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by insiders.

Institutional Trading of RTX

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RTX. Evergreen Advisors LLC acquired a new stake in shares of RTX during the first quarter worth about $31,000. Signature Resources Capital Management LLC grew its stake in RTX by 111.5% during the 1st quarter. Signature Resources Capital Management LLC now owns 184 shares of the company's stock worth $36,000 after buying an additional 97 shares during the last quarter. BOK Financial Private Wealth Inc. purchased a new position in RTX during the 2nd quarter worth approximately $36,000. Networth Advisors LLC purchased a new stake in RTX in the first quarter valued at approximately $40,000. Finally, Groupe la Francaise boosted its holdings in shares of RTX by 50.9% in the second quarter. Groupe la Francaise now owns 261 shares of the company's stock valued at $45,000 after acquiring an additional 88 shares during the period. Institutional investors and hedge funds own 86.50% of the company's stock.

About RTX

RTX Corporation NYSE: RTX is an aerospace and defense company that develops and manufactures products and systems for commercial aviation, business aviation, military aircraft and government customers. Its portfolio includes aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, air and missile defense systems, precision weapons, radars and advanced sensors.

The company operates through three principal businesses: Collins Aerospace, which supplies aerospace systems and components; Pratt & Whitney, which designs and produces aircraft engines and related services; and Raytheon, which provides defense and intelligence technologies.

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