RTX (NYSE:RTX) Shares Gap Up Following Strong Earnings

Key Points

• RTX shares gapped up after the company reported stronger-than-expected quarterly results, opening well above the prior close and rising about 8% in early trading. The stock reaction reflected a broad earnings beat.
• RTX posted Q2 adjusted EPS of $1.89, beating the $1.66 consensus, while revenue of $24.71 billion also topped estimates. Revenue grew 14.5% from a year earlier, showing solid operational momentum.
• The company raised full-year 2026 guidance to EPS of $7.10 to $7.25 and revenue of $95 billion to $96 billion, citing robust demand and a higher backlog. RTX also announced a quarterly dividend of $0.73 per share.

RTX Corporation (NYSE:RTX - Get Free Report)'s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $194.88, but opened at $205.00. RTX shares last traded at $212.5270, with a volume of 1,732,788 shares.

The company reported $1.89 earnings per share for the quarter, beating analysts' consensus estimates of $1.66 by $0.23. RTX had a net margin of 8.03% and a return on equity of 13.50%. The firm had revenue of $24.71 billion for the quarter, compared to analyst estimates of $22.89 billion. During the same period last year, the firm earned $1.56 earnings per share. The business's quarterly revenue was up 14.5% compared to the same quarter last year. RTX has set its FY 2026 guidance at 7.100-7.250 EPS.

RTX Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 14th will be issued a dividend of $0.73 per share. The ex-dividend date is Friday, August 14th. This represents a $2.92 annualized dividend and a yield of 1.4%. RTX's payout ratio is 54.78%.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: RTX reported Q2 adjusted EPS of $1.89, above the $1.66 consensus, while revenue reached $24.71 billion versus expectations of $22.89 billion. MarketBeat earnings report
• Positive Sentiment: RTX raised full-year 2026 guidance, now expecting EPS of $7.10 to $7.25 and revenue of $95 billion to $96 billion, both above prior forecasts and Wall Street estimates. Wall Street Journal article
• Positive Sentiment: Management cited robust demand and a higher backlog, while recent business updates at Farnborough highlighted more than 800 Pratt & Whitney GTF orders and commitments year to date, supporting the company’s long-term aerospace growth story. Pratt & Whitney GTF orders press release
• Neutral Sentiment: The latest headlines also mention RTX’s hybrid-electric aviation testing and a new MRO joint venture with Etihad Engineering, which are positive strategic developments but are more long-term than immediate catalysts. Hybrid-electric aviation press release
• Negative Sentiment: Some reports note potential geopolitical headwinds tied to Iran-related conflict, which could create uncertainty for defense and supply-chain costs even after the strong earnings beat. Barron’s article

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Erste Group Bank lowered RTX from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Jefferies Financial Group reissued a "buy" rating on shares of RTX in a research report on Wednesday, July 8th. Morgan Stanley reduced their price objective on RTX from $235.00 to $220.00 and set an "overweight" rating for the company in a research note on Wednesday, April 22nd. Wells Fargo & Company initiated coverage on RTX in a research report on Wednesday, April 1st. They set an "equal weight" rating and a $200.00 target price for the company. Finally, UBS Group cut their price target on shares of RTX from $209.00 to $199.00 and set a "neutral" rating on the stock in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $211.38.

Institutional Trading of RTX

A number of large investors have recently bought and sold shares of the company. Alpha Cubed Investments LLC increased its stake in shares of RTX by 0.3% during the fourth quarter. Alpha Cubed Investments LLC now owns 14,720 shares of the company's stock valued at $2,700,000 after acquiring an additional 50 shares during the period. LeConte Wealth Management LLC grew its stake in shares of RTX by 2.3% in the 4th quarter. LeConte Wealth Management LLC now owns 2,247 shares of the company's stock worth $412,000 after purchasing an additional 51 shares during the last quarter. Rydar Equities Inc. raised its holdings in shares of RTX by 0.4% in the 4th quarter. Rydar Equities Inc. now owns 13,524 shares of the company's stock worth $2,480,000 after purchasing an additional 52 shares in the last quarter. Schulhoff & Co. Inc. lifted its stake in RTX by 1.7% during the fourth quarter. Schulhoff & Co. Inc. now owns 3,188 shares of the company's stock valued at $585,000 after purchasing an additional 52 shares during the last quarter. Finally, Howard Capital Management Inc. boosted its holdings in RTX by 0.4% during the fourth quarter. Howard Capital Management Inc. now owns 12,340 shares of the company's stock worth $2,263,000 after buying an additional 53 shares in the last quarter. 86.50% of the stock is owned by hedge funds and other institutional investors.

RTX Stock Up 8.0%

The company has a debt-to-equity ratio of 0.48, a current ratio of 1.02 and a quick ratio of 0.78. The stock has a market capitalization of $283.41 billion, a P/E ratio of 39.48, a PEG ratio of 2.65 and a beta of 0.30. The stock's fifty day moving average is $185.57 and its two-hundred day moving average is $191.89.

RTX Company Profile

RTX NYSE: RTX is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX's operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.