RTX Corporation Q4 EPS Beats by $0.08 as Revenue Jumps 12.1%
Shares reached a new 52-week high after RTX reported EPS of $1.55, beating estimates by $0.08, and revenue of $24.24 billion, exceeding forecasts by $1.59 billion. The company forecast FY2026 EPS of $6.60–6.80 and attracted JPMorgan’s price target boost to $215, reinforcing a Moderate Buy consensus.
1. Strong Q4 Earnings Propel RTX to New 52-Week High
RTX reported fourth-quarter adjusted EPS of $1.55, beating consensus estimates by $0.08, and delivered revenue of $24.24 billion, 12.1% higher than a year ago and $1.59 billion above analysts’ forecasts. The company’s net margin improved to 7.6%, while return on equity reached 13.08%. Shares surged to a 12-month peak following the announcement, reflecting investor confidence in RTX’s operational execution across its four core segments—Collins Aerospace, Pratt & Whitney, Raytheon, and corporate.
2. Analyst Upgrades and Raised Price Targets
Following the earnings release, JPMorgan increased its price objective from $200 to $215 and upgraded RTX to overweight. TD Cowen and Deutsche Bank both reaffirmed buy ratings, with Deutsche Bank setting a $195 target. Susquehanna established a $230 objective, and Goldman Sachs raised its target from $151 to $168 with a neutral stance. Among 21 analysts covering the stock, one recommends strong buy, 14 advise buy and six maintain hold, yielding a consensus moderate-buy rating and an average target just above current levels.
3. Institutional Investors Expand Positions
Major asset managers have been adding to their RTX stakes. Vanguard Group increased its holding by 700,487 shares in Q3, bringing its total to 122.8 million shares valued at $20.54 billion. State Street added 552,009 shares in Q2 to hold 112.7 million shares ($16.46 billion), and Capital Research Global Investors purchased 799,155 shares for a total of 76.2 million shares ($12.75 billion). Fisher Asset Management grew its position by 575,004 shares, now at 21.2 million shares ($3.54 billion). Institutional ownership stands at 86.5%, underscoring strong buy-and-hold conviction.
4. Robust 2026 Financial Guidance and Backlog Strength
RTX set full-year 2026 adjusted EPS guidance of $6.60 to $6.80 and expects sales between $92.0 billion and $93.0 billion, implying organic growth of 5%–6%. Free cash flow is projected at $8.25 billion to $8.75 billion, underpinned by a backlog of $268 billion—split $161 billion in commercial orders and $107 billion in defense contracts. In 2025, the company generated $4.2 billion of operating cash flow and $3.2 billion of free cash flow in Q4 alone, supporting capital returns and debt reduction plans.