RTX Corporation (RTX) was renamed from Raytheon Technologies in 2023. In April 2020, Raytheon Technologies was formed through the merger of United Technologies and Raytheon. RTX has emerged as an aerospace and defense company, providing advanced systems and services for commercial, military, and government customers worldwide. Based in Arlington, VA.
The company currently operates through three business segments.
- The Collins Aerospace segment includes Advanced Structures, Avionics, Interiors, Mission Systems, and Power & Controls (34.1% of total sales).
- The Pratt & Whitney segment designs, manufactures, and services the world’s most advanced aircraft engines and auxiliary power systems for commercial, military, and business aircraft (32.9% of total sales).
- The Raytheon segment includes the legacy Raytheon Intelligence & Space (RIS) and Raytheon Missiles and Defense (RMD) segments (31.7% of total sales).
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| Share Price | $180.2 | 10/7/2026 | Sector | Industrials | |
| Market Cap | $242.3B | Large Cap | Industry | Defense | |
| P/E Ratio | 31.74 | Op Margin | Dividend | 1.59% | |
| Year | 2023 | 2024 | 2026 | Historical | Volatility |
| Annual EPS | $2.23 | $3.55 | $4.96 | Beta | 0.31 |
| Revenue | $68.9B | $80.7B | $88.6B | Category | Conserv. |
Historical Volatility categories (Conservative, Moderate, and Aggressive) are based on beta, which measures a stock’s historical price volatility relative to the overall market. Company metrics are current as of the publication date. Historical Revenue and Annual EPS reflect reported fiscal-year results. All information is provided for educational purposes only and should not be considered investment advice or recommendations.
Keys to Success
The global commercial aerospace market is seeing rising air travel, fleet expansion, and replacement of older aircraft. RTX participates through Pratt & Whitney engines, Collins Aerospace systems, spare parts, and maintenance services. In 2Q2026, Collins commercial original-equipment sales rose 26%, while Pratt commercial aftermarket sales increased 25%. Pratt also received more than 800 GTF engine orders and commitments during the first seven months of 2026, lifting its GTF backlog above 8,000 engines.
Heightened geopolitical tensions are leading governments to increase spending on integrated air and missile defense, precision weapons, sensors, and counter-drone systems. RTX is positioned across these categories through Patriot, Standard Missile, AMRAAM, SPY-6, Coyote, and related command-and-control technologies. Demand is also being supported by inventory replenishment.
RTX ended 2Q2026 with a record backlog of $289 billion, up 22% year over year, including $119 billion of defense work. The company secured $43 billion of new awards during the quarter, including nearly $20 billion at Raytheon. The total backlog comprised $170 billion of commercial orders and $119 billion of defense orders, providing strong visibility into future production requirements.
Much of RTX’s business generates income long after the initial product sale, which offsets the cyclicality of original-equipment deliveries. In 2Q2026, companywide commercial aftermarket sales rose 18%, including 25% growth at Pratt and 10% at Collins. Defense systems add another recurring stream through interceptor replenishment, radar upgrades, software modernization, maintenance, logistics, and training.
In January 2026, President Trump proposed raising U.S. military spending to about $1.5 trillion in 2027. Such higher funding levels should strengthen RTX’s growth prospects. RTX’s cash generation funds capacity, technology investment, debt reduction, and shareholder returns.
Keys for Concern
The biggest overhang on RTX remains Pratt & Whitney’s geared turbofan (GTF) engine crisis, which was triggered by contaminated powdered metal used in certain engine components manufactured between 2015 and 2021. A record number of engines are now undergoing inspections and repairs, sharply increasing demand for spare engines, replacement parts and shop space while straining already constrained aerospace supply chains.
RTX Corporation continues to face major supply-chain disruptions that are slowing production and delaying aircraft and engine deliveries. After the pandemic, suppliers have struggled to rebuild the labor force and manufacturing capacity, and raw-material constraints and transportation bottlenecks have not gone away. RTX was impacted by its dependence on Russian titanium and sanctions. While it has expanded its supplier base to Japan, the United States, Kazakhstan, and Europe, it still depends on Russia.
Mark Notes
RTX’s shares have outperformed the Aerospace – Defense industry over the past year (+9.5% vs. -19.6%). The company is benefiting from commercial aerospace recovery, strong defense demand, and a robust backlog.
Three reasons to like RTX:
- Average organic revenue growth of 10.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.3% to outpace its revenue gains
- Free cash flow margin grew by 5.2 percentage points over the last five years, giving the company more chips to play with
RTX has raised its dividend for decades and raised its quarterly cash dividend by 7.4% to $0.73 per share in 2Q2026 and currently yields 1.59%.
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.
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