RTX presents a strong investment profile centered around an unprecedented, highly visible long-term revenue backlog. The company also keeps delivering sales and profit growth.
Meanwhile, the stock trades at 27.0 times the company’s forward earnings forecast. But this premium valuation is justified by the unparalleled predictability of its core business lines.
RTX CORP. (New York symbol RTX; www.rtx.com) has three divisions: Pratt & Whitney makes jet engines; Collins Aerospace makes aircraft control systems; and Raytheon makes a variety of military equipment such as missile defence and radar systems.
The company took its current form in 2020 through the merger of United Technologies and Raytheon. As part of the merger, the new firm also spun off its Otis (elevator) and Carrier (heating and air conditioning equipment) businesses as separate firms.
RTX continues to earmark large sums to developing new products and improving existing ones.
One of the company’s most important new products in the past few years is Pratt & Whitney’s Geared Turbofan (GTF) jet engine, which is much quieter and more fuel efficient than traditional engines. The GTF engine now powers over 6,300 aircraft. That installed base could rise to 13,000 over the next few years.
That’s good news for RTX, as those engines will require regular servicing.
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RTX will gain from higher demand for its key products
RTX’s sales in the three months ended March 31, 2026, rose 8.7%, to $22.08 billion from $20.31 billion a year earlier. Revenue rose due to higher commercial and defense volumes across all operational segments.
Excluding one-time items, earnings were $2.43 billion, or $1.78 a share, in the latest quarter. That was up 21.8% from $1.99 billion, or $1.47. Earnings rose along with the higher sales, as well as lower expenses.
Going forward, RTX will gain from rising air travel volumes--but a slowdown in the production of new aircraft. As a result, airlines are spending more on the company’s replacement parts and maintenance services.
RTX also continues to see strong demand for its Patriot missiles and other military hardware due to the Russia-Ukraine war and other ongoing conflicts.
For 2026, RTX’s revenue will likely rise 5% to around $93.4 billion. The company’s earnings could also gain 8%, to $6.81 a share, and the stock trades at 27.0 times that estimate. That’s high but reasonable in light of its U.S. government contracts. The stock yields 1.6%.
Recommendation in Wall Street Stock Forecaster: RTX Corp. is a buy.
