📊 RTX Key Takeaways
Is RTX Corp (RTX) a Good Investment?
RTX demonstrates solid fundamental strength with 9.7% revenue growth, healthy 10.5% operating margins, and robust free cash flow generation of $7.9B. The business shows operational efficiency with 5.0x interest coverage and reasonable leverage, though modest profitability ratios and tight liquidity warrant monitoring.
RTX shows solid fundamental quality with strong 9.7% revenue growth, healthy 10.5% operating margin, and robust free cash flow generation of $7.94B. Financial health appears sound with manageable leverage and adequate interest coverage, though weaker net income growth and tight liquidity suggest the business is improving but not without execution risk. Overall, the company looks fundamentally strong, supported by scale, cash generation, and operating resilience.
Why Buy RTX Corp Stock? RTX Key Strengths
- Strong revenue growth of 9.7% YoY with $88.6B in sales indicates market demand and business expansion
- Robust free cash flow generation of $7.9B (9.0% FCF margin) provides financial flexibility and capital allocation optionality
- Healthy operating margin of 10.5% demonstrates operational efficiency within the aerospace and defense sector
- Solid interest coverage ratio of 5.0x indicates comfortable debt service capability
- Reasonable leverage at 0.58x debt-to-equity with $7.4B in cash reserves
- Strong top-line growth with revenue up 9.7% year over year
- Robust cash generation with $10.57B operating cash flow and $7.94B free cash flow
- Manageable leverage profile with 0.58x debt-to-equity and 5.0x interest coverage
RTX Stock Risks: RTX Corp Investment Risks
- Net income declined 4.8% YoY despite revenue growth, signaling potential margin compression or operational headwinds
- Low gross margin of 2.4% is exceptionally thin, limiting pricing power and vulnerability to cost inflation
- Tight liquidity with current ratio of 1.03x and quick ratio of 0.80x provides limited cushion for operational disruptions
- High leverage with $37.8B long-term debt relative to $65.2B equity may constrain financial flexibility
- Modest profitability metrics with 3.9% ROA and 10.3% ROE suggest capital deployment could be more efficient
- Net income declined 4.8% year over year despite revenue growth, indicating some earnings pressure
- Very low reported gross margin of 2.4% suggests limited cushion if costs rise or mix weakens
- Liquidity is somewhat tight with a 1.03x current ratio and 0.80x quick ratio
Key Metrics to Watch
- Gross margin trend reversal given 2.4% is unsustainably low for sustainable profitability
- Operating cash flow sustainability and capital expenditure requirements to maintain growth trajectory
- Net income recovery and margin expansion despite revenue growth headwinds
- Operating margin and net income conversion on future revenue growth
- Free cash flow generation and liquidity ratios
RTX Corp (RTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
RTX Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
RTX Profit Margin, ROE & Profitability Analysis
RTX vs Automotive Sector: How RTX Corp Compares
How RTX Corp compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RTX Corp Stock Overvalued? RTX Valuation Analysis 2026
Based on fundamental analysis, RTX Corp has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RTX Corp Balance Sheet: RTX Debt, Cash & Liquidity
RTX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: RTX Corp's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.23 reflects profitable operations.
RTX Revenue Growth, EPS Growth & YoY Performance
RTX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $20.1B | $1.5B | $1.09 |
| Q2 2025 | $19.7B | $111.0M | $0.08 |
| Q1 2025 | $19.3B | $1.5B | $1.14 |
| Q3 2024 | $13.5B | -$984.0M | $-0.68 |
| Q2 2024 | $18.3B | $111.0M | $0.08 |
| Q1 2024 | $17.2B | $1.4B | $0.97 |
| Q3 2023 | $13.5B | -$984.0M | $-0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RTX Corp Dividends, Buybacks & Capital Allocation
RTX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for RTX Corp (CIK: 0000101829)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RTX
What is the AI rating for RTX?
RTX Corp (RTX) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RTX's key strengths?
Claude: Strong revenue growth of 9.7% YoY with $88.6B in sales indicates market demand and business expansion. Robust free cash flow generation of $7.9B (9.0% FCF margin) provides financial flexibility and capital allocation optionality. ChatGPT: Strong top-line growth with revenue up 9.7% year over year. Robust cash generation with $10.57B operating cash flow and $7.94B free cash flow.
What are the risks of investing in RTX?
Claude: Net income declined 4.8% YoY despite revenue growth, signaling potential margin compression or operational headwinds. Low gross margin of 2.4% is exceptionally thin, limiting pricing power and vulnerability to cost inflation. ChatGPT: Net income declined 4.8% year over year despite revenue growth, indicating some earnings pressure. Very low reported gross margin of 2.4% suggests limited cushion if costs rise or mix weakens.
What is RTX's revenue and growth?
RTX Corp reported revenue of $88.6B.
Does RTX pay dividends?
RTX Corp pays dividends, with $3,574.0M distributed to shareholders in the trailing twelve months.
Where can I find RTX SEC filings?
Official SEC filings for RTX Corp (CIK: 0000101829) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RTX's EPS?
RTX Corp has a diluted EPS of $4.96.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RTX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, RTX Corp has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is RTX stock overvalued or undervalued?
Valuation metrics for RTX: ROE of 10.3% (sector avg: 12%), net margin of 7.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy RTX stock in 2026?
Our dual AI analysis gives RTX Corp a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RTX's free cash flow?
RTX Corp's operating cash flow is $10.6B, with capital expenditures of $2.6B. FCF margin is 9.0%.
How does RTX compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 7.6% (avg: 6%), ROE 10.3% (avg: 12%), current ratio 1.03 (avg: 1.2).