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RTX Corporation (RTX), headquartered in Arlington, Virginia, provides systems and services for commercial, military, and government customers in the aerospace and defense industries. Valued at $226.6 billion by market cap, the company offers avionics systems, aviation systems, communications and navigation equipment, interior and exterior aircraft lighting, aircraft seating, environmental control systems, flight control systems, and engine components. The aerospace and defense giant is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Tuesday, Oct. 21.
Ahead of the event, analysts expect RTX to report a profit of $1.41 per share on a diluted basis, down 2.8% from $1.45 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect RTX to report EPS of $5.93, up 3.5% from $5.73 in fiscal 2024. Its EPS is expected to rise 11.6% year-over-year to $6.62 in fiscal 2026.
RTX stock has outperformed the S&P 500 Index’s ($SPX) 17.4% gains over the past 52 weeks, with shares up 36.5% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 14.8% gains over the same time frame.
RTX's outperformance is driven by strong organic sales growth, robust profitability, and double-digit growth in commercial aftermarket sales, with favorable aviation trends expected to continue.
On Jul. 22, RTX shares closed down by 1.6% after reporting its Q2 results. Its adjusted EPS of $1.56 surpassed Wall Street expectations of $1.45. The company’s revenue was $21.6 billion, beating Wall Street's $20.5 billion forecast. RTX expects full-year adjusted EPS in the range of $5.80 to $5.95.
Analysts’ consensus opinion on RTX stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and seven give a “Hold.” While RTX currently trades above its mean price target of $164.16, the Street-high price target of $181 suggests an upside potential of 7.4%.
