On Wednesday, U.S. President Donald Trump publicly criticized RTX for what he described as a slow response to military requirements and warned that the company’s future government contracts could be curtailed if it does not limit its share buyback programs. In his statement, the President emphasized that defense contractors must prioritize responsive delivery of munitions and advanced radar systems over returning capital to shareholders. He noted that RTX holds more than $50 billion in active U.S. Department of Defense contracts, but suggested that continued buybacks without demonstrable speed in program deliveries could jeopardize renewal of key agreements.

RTX enters the January 27 earnings release with a notable history of outperforming analyst estimates. Over the past eight quarters, the company recorded five positive earnings surprises, averaging a 7% beat relative to consensus forecasts. This track record, combined with a year-end order backlog exceeding $160 billion across its Collins Aerospace, Pratt & Whitney and Raytheon segments, underpins expectations for another upside surprise. Analysts highlight that robust spare-parts demand in commercial aviation and accelerated procurement of air-and-missile defense systems by allied governments are the two primary drivers behind margin expansion and higher-than-forecast profitability.

During the past month, RTX shares rose by nearly 10%, propelled by a string of new contract awards and upgraded guidance from several investment firms. The company secured a $3.2 billion contract to supply next-generation missile seekers to the U.S. Navy and a parallel €1.1 billion framework agreement with a European defense alliance for precision-guided munitions. These wins not only bolster the firm’s top-line visibility into 2027 but also reinforce investor confidence in the company’s ability to capture a greater share of global defense spending, which is forecast to grow by 4.5% annually over the next five years.

RTX will report its fourth quarter and full year 2025 financial results on January 27 before markets open, followed by an 8:30 a.m. ET conference call. In last year’s report, the company generated over $80 billion in sales and delivered record free cash flow of $6.3 billion. Management is expected to outline 2026 targets that include stabilizing commercial aerospace margins at around 14% and lifting defense operating margins toward the mid-20% range, driven by higher production rates of jet engines and integrated air-and-missile defense solutions. A presentation deck will be available on the company’s website ahead of the webcast.