Jefferies analyst Sheila Kahyaoglu has increased her 12-month price target for RTX to 225, implying a potential upside of nearly 13% from recent levels. This revision reflects Kahyaoglu’s bullish outlook on RTX’s defense segment, particularly driven by anticipated growth in missile defense systems and international exports. The analyst cited a combination of strong backlog growth and ongoing cost‐reduction initiatives, forecasting that RTX’s free cash flow conversion will improve to over 35% by fiscal 2026, up from 28% in the prior year.

RTX’s Raytheon division has signed a multi-year agreement with TTM Technologies valued at up to 200 million for the design, manufacture and testing of critical components for the Lower Tier Air and Missile Defense Sensor program. Under the terms of the deal, TTM will deliver radar assemblies and antenna subcomponents on accelerated timelines, supporting RTX’s goal of meeting customer delivery milestones while reducing per‐unit costs by approximately 8%. Mike Mills, Raytheon’s Vice President, highlighted that this partnership is essential to maintaining program schedules for U.S. and allied defense forces.

In its latest quarter, RTX reported earnings per share of 1.55, surpassing consensus estimates by 0.08, while revenue climbed 12.1% year-over-year to 24.24 billion. The company achieved a net margin of 7.6% and a return on equity of 13.08%, driven by higher deliveries in its Pratt & Whitney and Collins Aerospace units. Based on this performance, RTX raised its full-year 2026 earnings guidance to a range of 6.60–6.80 per share, up from prior forecasts of 6.40–6.70, signaling confidence in sustained demand across commercial and defense markets.