What does RTX Corporation do?

RTX Corporation is the third-largest U.S. defense company (after Lockheed Martin and Northrop Grumman) and the #2 global commercial engine maker (after GE Aerospace). Formed in April 2020 through the Raytheon + United Technologies (UTC) merger, reorganized as RTX in July 2023 with three segments: (1) Collins Aerospace (~37% of revenue) — integrated avionics (cockpit displays, autopilot, communications), mechanical cabin systems (seats, cabins, oxygen), evacuation, lighting, flight controls, propellers. Main customers: Boeing, Airbus, Bombardier, Embraer, defense agencies. Q1 FY2026: $7.4B revenue (+5%). (2) Pratt & Whitney (~33% of revenue) — jet engines. GTF (Geared Turbofan) PW1100G for A320neo + A321neo + A220 + Embraer E2 (>1,200 aircraft operating), PW1500G for A220, F135 engine for F-35 Lightning II (P&W won the F-35 Engine Core Upgrade vs GE Aerospace XA100 in 2024 — contract worth $1B+ long-term), PW800 business jets. Q1 FY2026: $7.4B revenue (+14%), beat driven by F135 production ramp. (3) Raytheon (~30% of revenue) — defense systems: Patriot (world's most successful air defense system — 19 countries operating, >140 ballistic missiles intercepted since Ukraine May 2023 + ~250 air targets), NASAMS (short-range air defense, used by Ukraine, Taiwan, U.S. White House), Tomahawk (cruise missile), AMRAAM (air-to-air), AIM-9X (Sidewinder), SM-3 (naval anti-ballistic), SPY-6 radar (next-generation naval radar). Q1 FY2026: $6.7B revenue (+5%), beat on record defense backlog $109B. Record backlog $271B ($162B commercial / $109B defense) = ~3 years of forward sales. CEO Chris Calio since May 2, 2024 (succeeded Greg Hayes who retired after 16 years). HQ Arlington, Virginia. ~185,000 employees. Listed on S&P 500.

Why did Vectorial Data pick RTX?

RTX at $172.87 means buying the #3 U.S. defense contractor + #2 global commercial engine maker with a record $271B backlog (~3 years of sales) at a forward price vs. profit of 22.9x — a real premium but justified by backlog visibility, structural defense growth, and projected GTF recovery by 2030. Specific reasons: (1) Q1 FY2026 was a strong beat (reported April 21, 2026): revenue $22.1B (+9% YoY) beat consensus $21.4B; adj EPS $1.78 vs $1.51 (+18% YoY) beat consensus $1.69 (+5% beat). All 3 segments grew — Collins +5%, Pratt +14%, Raytheon +5%. FY2026 Guidance RAISED mid-call: adj EPS $6.70-$6.90 (was $6.50-$6.80), FCF $8.25-$8.75B (was $7.5-$8B). (2) Record backlog $271B = ~3 years of forward sales: $162B commercial (Boeing/Airbus aftermarket + GTF MRO + Collins systems) + $109B defense (Patriot + NASAMS + F135 + Tomahawk + AMRAAM). In Q1 RTX closed $30B+ in new contracts. Multi-year visibility is exceptional vs. cyclical industrial peers. (3) Patriot Ukraine — $3.7B contract signed April 14, 2026 (funded by Germany): 5 additional Patriot systems for Ukraine. Patriot has already intercepted >140 ballistic missiles + ~250 air targets in Ukraine since May 2023, including the first confirmed shoot-down of a Kinzhal hypersonic missile (Patriot vs Russia's top weapon = the biggest military capability demonstration of the decade). Each Patriot system = $1B+. Global Patriot pipeline: Poland, Romania, Sweden, Germany, Netherlands, Japan. (4) NASAMS Taiwan $698.9M (November 2025): air defense for Taipei amid tensions with China. NASAMS has protected the White House since 2005. (5) F-35 Engine Core Upgrade (ECU) — P&W won vs GE Aerospace in 2024: the F135 upgrade goes exclusively to P&W, sustained contract ~$1B+ for 20+ years. Pentagon chose ECU over AETP (Adaptive Engine Transition Program) to reduce risk. F-35 program has 2,400+ aircraft global backlog (U.S. + 18 allies). (6) Clear GTF recovery curve: the GTF powder metallurgy issue required $2.8B accumulated provision since 2023. AOG (Aircraft on Ground) dropped -15% Q1 2026 vs Q1 2025 — first material improvement. Recovery to normal levels by 2030. GTF Advantage (entry late-2026) offers +1% better fuel burn and +5,000 cycles durability — relaunches the engine with major airlines. (7) Dividend (the cash they pay you) raised +7.4% on April 30, 2026 to $0.73/sh quarterly, payable June 11, 2026. Trailing yield 1.60%. RTX has paid dividends since 1936 (89 years) across legacy components + uninterrupted since the 2020 merger. (8) Trump $1T defense budget proposed: the new administration prioritized defense, NATO 5% GDP target. RTX as the 3rd contractor + global Patriot/NASAMS demand = direct beneficiary. (9) Defense backlog $109B + Trump executive order Jan 7, 2026: the executive order limits defense buybacks/dividends but authorizes defense industrial base M&A — RTX can grow inorganically. (10) Valuation: forward price vs. profit of 22.9x is premium vs. A&D peers ~20x but justified by 3-year backlog visibility + structural Patriot demand. Mean analyst target $158-180 (depending on source) with high target $190+. But stock fell >4% post-earnings on the $850M tariff warning — that gap is the opportunity.

What are the risks of investing in RTX?

The risks are specifically measurable: (1) $850M tariff hit in FY2026 — the trigger for the post-earnings sell-off: Canada/Mexico ~$250M, China ~$250M, reciprocal ~$300M, steel/aluminum ~$50M. RTX absorbs this directly; if tariffs escalate further, the raised guidance gets eroded. RTX can pass some through price increases but not all — management estimated ~$500M net post-mitigations. (2) GTF accumulated provision $2.8B + AOG recovery by 2030: the powder metallurgy issue grounded 700+ aircraft at peak. AOG -15% Q1 2026 is the first improvement but full recovery takes 4 more years. If another defect is detected (unlikely but possible), new provision. Customer concessions with airlines (Lufthansa, JetBlue, IndiGo, Spirit) total $1B+ pending contingencies. (3) F-35 program political risk: Trump and Musk have publicly criticized the F-35 program ('manned fighters obsolete'). If the Pentagon cuts the F-35 order rate (from 80-90/year to 40-50/year), F135 revenue + Collins F-35 systems drops $500M+/year. ECU contract continues but production volume falls. (4) Boeing 737 MAX dependency: Collins + LTA + Pratt engines (PW1500G on B-MAX competitor A220) have indirect exposure to Boeing's 737 MAX ramp. If Boeing has another grounding or quality issue, GTF demand drops. (5) Trump executive order Jan 7, 2026 limiting buybacks/dividends for defense: the executive order proposed restricting defense contractor buybacks (returning capital to the government via price reductions). If Congress codifies it, RTX dividend growth slows. RTX raised the div 7.4% on April 30 despite the order — legal challenge ongoing but uncertainty remains. (6) Raytheon Iran/Middle East exposure: Patriot exports to Saudi/UAE, NASAMS Israel — regional escalation increases backlog but also regulatory risk (CAATSA, ITAR scrutiny). (7) European defense budget reversal: if Ukraine achieves a ceasefire, Patriot/NASAMS replenishment demand moderates. But the NATO 5% target sustains a high baseline. (8) Pratt Engine Alliance dissolution: P&W left Engine Alliance (joint with GE for A380) — A380 production already ended, but service contracts remain. (9) Cybersecurity attacks: RTX is a priority target for Russian/Chinese state actors. Any major breach = customer trust erosion + remediation costs. (10) CEO Chris Calio early-tenure: only 2 years since succession. His first big test with tariffs had a mediocre response (stock fell 4%). If another crisis emerges (another GTF defect, F-35 cut), his credibility gets tested.

Does RTX pay dividends?

Yes. RTX Corporation pays a dividend of about 1.6% per year.

How can I buy RTX with little money?

You can buy fractional shares of RTX starting from a few dollars with any broker that offers fractional shares. The Vectorial Data method: invest the same amount in every pick, every time.

When was this RTX analysis last updated?

The RTX analysis was last updated on Invalid Date.

Stocks/RTX

RTX — RTX Corporation

IndustrialsNorth AmericaUnited StatesBlockchain certified

$172.87

Target: $185.00 (+7%)

P/E Ratio

32.4

P/E Forward

22.9

Dividend

1.6%

Market Cap

$232.8B

EPS

$5.33

Consensus

Buy

What they do

RTX Corporation is the third-largest U.S. defense company (after Lockheed Martin and Northrop Grumman) and the #2 global commercial engine maker (after GE Aerospace). Formed in April 2020 through the Raytheon + United Technologies (UTC) merger, reorganized as RTX in July 2023 with three segments:

Collins Aerospace (~37% of revenue) — integrated avionics (cockpit displays, autopilot, communications), mechanical cabin systems (seats, cabins, oxygen), evacuation, lighting, flight controls, propellers. Main customers: Boeing, Airbus, Bombardier, Embraer, defense agencies. Q1 FY2026: $7.4B revenue (+5%)**.

Pratt & Whitney (~33% of revenue) — jet engines. GTF (Geared Turbofan) PW1100G for A320neo + A321neo + A220 + Embraer E2 (>1,200 aircraft operating), PW1500G for A220, F135 engine for F-35 Lightning II (P&W won the F-35 Engine Core Upgrade vs GE Aerospace XA100 in 2024 — contract worth $1B+ long-term), PW800 business jets. Q1 FY2026: $7.4B revenue (+14%)**, beat driven by F135 production ramp.

Raytheon (~30% of revenue) — defense systems: Patriot (world's most successful air defense system — 19 countries operating, >140 ballistic missiles intercepted since Ukraine May 2023 + ~250 air targets), NASAMS (short-range air defense, used by Ukraine, Taiwan, U.S. White House), Tomahawk (cruise missile), AMRAAM (air-to-air), AIM-9X (Sidewinder), SM-3 (naval anti-ballistic), SPY-6 radar (next-generation naval radar). Q1 FY2026: $6.7B revenue (+5%)**, beat on record defense backlog $109B.

Record backlog $271B ($162B commercial / $109B defense) = ~3 years of forward sales. CEO Chris Calio since May 2, 2024 (succeeded Greg Hayes who retired after 16 years). HQ Arlington, Virginia. ~185,000 employees. Listed on S&P 500.

Why we like it

RTX at $172.87 means buying the #3 U.S. defense contractor + #2 global commercial engine maker with a record $271B backlog (~3 years of sales) at a forward price vs. profit of 22.9x — a real premium but justified by backlog visibility, structural defense growth, and projected GTF recovery by 2030. Specific reasons:

Q1 FY2026 was a strong beat (reported April 21, 2026): revenue $22.1B (+9% YoY) beat consensus $21.4B; adj EPS $1.78 vs $1.51 (+18% YoY) beat consensus $1.69 (+5% beat). All 3 segments grew — Collins +5%, Pratt +14%, Raytheon +5%. FY2026 Guidance RAISED mid-call: adj EPS $6.70-$6.90 (was $6.50-$6.80), FCF $8.25-$8.75B (was $7.5-$8B).
Record backlog $271B = ~3 years of forward sales: $162B commercial (Boeing/Airbus aftermarket + GTF MRO + Collins systems) + $109B defense (Patriot + NASAMS + F135 + Tomahawk + AMRAAM). In Q1 RTX closed $30B+ in new contracts. Multi-year visibility is exceptional vs. cyclical industrial peers.
Patriot Ukraine — $3.7B contract signed April 14, 2026 (funded by Germany): 5 additional Patriot systems for Ukraine. Patriot has already intercepted >140 ballistic missiles + ~250 air targets in Ukraine since May 2023, including the first confirmed shoot-down of a Kinzhal hypersonic missile (Patriot vs Russia's top weapon = the biggest military capability demonstration of the decade). Each Patriot system = $1B+. Global Patriot pipeline: Poland, Romania, Sweden, Germany, Netherlands, Japan.
NASAMS Taiwan $698.9M (November 2025): air defense for Taipei amid tensions with China. NASAMS has protected the White House since 2005.
F-35 Engine Core Upgrade (ECU) — P&W won vs GE Aerospace in 2024: the F135 upgrade goes exclusively to P&W, sustained contract ~$1B+ for 20+ years. Pentagon chose ECU over AETP (Adaptive Engine Transition Program) to reduce risk. F-35 program has 2,400+ aircraft global backlog (U.S. + 18 allies).
Clear GTF recovery curve: the GTF powder metallurgy issue required $2.8B accumulated provision since 2023. AOG (Aircraft on Ground) dropped -15% Q1 2026 vs Q1 2025 — first material improvement. Recovery to normal levels by 2030. GTF Advantage (entry late-2026) offers +1% better fuel burn and +5,000 cycles durability — relaunches the engine with major airlines.
Dividend (the cash they pay you) raised +7.4% on April 30, 2026 to $0.73/sh quarterly, payable June 11, 2026. Trailing yield 1.60%. RTX has paid dividends since 1936 (89 years) across legacy components + uninterrupted since the 2020 merger.
Trump $1T defense budget proposed: the new administration prioritized defense, NATO 5% GDP target. RTX as the 3rd contractor + global Patriot/NASAMS demand = direct beneficiary.
Defense backlog $109B + Trump executive order Jan 7, 2026: the executive order limits defense buybacks/dividends but authorizes defense industrial base M&A — RTX can grow inorganically. (10) Valuation: forward price vs. profit of 22.9x is premium vs. A&D peers ~20x but justified by 3-year backlog visibility + structural Patriot demand. Mean analyst target $158-180 (depending on source) with high target $190+. But stock fell >4% post-earnings on the $850M tariff warning — that gap is the opportunity.

Key Risk

The risks are specifically measurable:

$850M tariff hit in FY2026 — the trigger for the post-earnings sell-off: Canada/Mexico ~$250M, China ~$250M, reciprocal ~$300M, steel/aluminum ~$50M. RTX absorbs this directly; if tariffs escalate further, the raised guidance gets eroded. RTX can pass some through price increases but not all — management estimated ~$500M net post-mitigations.
GTF accumulated provision $2.8B + AOG recovery by 2030: the powder metallurgy issue grounded 700+ aircraft at peak. AOG -15% Q1 2026 is the first improvement but full recovery takes 4 more years. If another defect is detected (unlikely but possible), new provision. Customer concessions with airlines (Lufthansa, JetBlue, IndiGo, Spirit) total $1B+ pending contingencies.
F-35 program political risk: Trump and Musk have publicly criticized the F-35 program ('manned fighters obsolete'). If the Pentagon cuts the F-35 order rate (from 80-90/year to 40-50/year), F135 revenue + Collins F-35 systems drops $500M+/year. ECU contract continues but production volume falls.
Boeing 737 MAX dependency: Collins + LTA + Pratt engines (PW1500G on B-MAX competitor A220) have indirect exposure to Boeing's 737 MAX ramp. If Boeing has another grounding or quality issue, GTF demand drops.
Trump executive order Jan 7, 2026 limiting buybacks/dividends for defense: the executive order proposed restricting defense contractor buybacks (returning capital to the government via price reductions). If Congress codifies it, RTX dividend growth slows. RTX raised the div 7.4% on April 30 despite the order — legal challenge ongoing but uncertainty remains.
Raytheon Iran/Middle East exposure: Patriot exports to Saudi/UAE, NASAMS Israel — regional escalation increases backlog but also regulatory risk (CAATSA, ITAR scrutiny).
European defense budget reversal: if Ukraine achieves a ceasefire, Patriot/NASAMS replenishment demand moderates. But the NATO 5% target sustains a high baseline.
Pratt Engine Alliance dissolution: P&W left Engine Alliance (joint with GE for A380) — A380 production already ended, but service contracts remain.
Cybersecurity attacks: RTX is a priority target for Russian/Chinese state actors. Any major breach = customer trust erosion + remediation costs. (10) CEO Chris Calio early-tenure: only 2 years since succession. His first big test with tariffs had a mediocre response (stock fell 4%). If another crisis emerges (another GTF defect, F-35 cut), his credibility gets tested.

This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.

Vectorial Data picked RTX on 2026-05-05 at $172.87.

Last updated: Invalid Date

Dividends received by the Vectorial portfolio

What this stock has paid the model since we bought it. Your actual amount depends on when you replicated.

Ex-div date	Per share	Shares	Total to portfolio
Aug 14, 2026	$0.7300	0.2896	$0.21
May 22, 2026	$0.7300	0.2887	$0.21

Total received: $0.42

Full Research

RTX Corporation (RTX) — Research Completo

Precio: $172.87 | P/E TTM: 32.43 | P/E Forward: 22.90 | Div Yield: 1.60% | Market Cap: $232.80B

¿Qué es RTX?

RTX Corporation es la tercera empresa de defensa más grande de EE.UU. (después de Lockheed Martin y Northrop Grumman) y el #2 fabricante mundial de motores comerciales (después de GE Aerospace).

Historia:

Abril 2020: fusión Raytheon Company + United Technologies Corporation (UTC) = Raytheon Technologies
Julio 2023: rebrand a RTX Corporation, reorganización en 3 segmentos
2 mayo 2024: Chris Calio asume CEO (sucedió a Greg Hayes tras 16 años)

HQ: Arlington, Virginia | Empleados: ~185,000 | Cotización: S&P 500

Tres Segmentos

Collins Aerospace (~37% revenue)

Aviónica (cockpit displays, autopilot, comunicaciones)
Sistemas de cabina (asientos, oxígeno, evacuación, lighting)
Controles de vuelo, propellers, landing gear
Cliente: Boeing, Airbus, Bombardier, Embraer, defense agencies
Q1 FY2026: $7.4B revenue (+5%)

Pratt & Whitney (~33% revenue)

GTF (Geared Turbofan) PW1100G: A320neo + A321neo (>1,200 aviones operando)
PW1500G: A220, Embraer E2
F135: motor exclusivo F-35 Lightning II
PW800: business jets (Gulfstream, Dassault)
Q1 FY2026: $7.4B revenue (+14%)

Raytheon (~30% revenue)

Patriot: sistema #1 de defensa aérea — 19 países
NASAMS: defensa aérea corto alcance — Ukraine, Taiwan, White House
Tomahawk: cruise missile
AMRAAM: air-to-air
AIM-9X (Sidewinder): air-to-air corto alcance
SM-3: anti-balístico naval
SPY-6: radar naval próxima generación
Q1 FY2026: $6.7B revenue (+5%)

Q1 FY2026 — Reportado 21 abril 2026

Métrica	Q1 2026	Consensus	Beat
Revenue	$22.1B	$21.4B	+3%
Adj EPS	$1.78	$1.69	+5%
YoY EPS	+18%	—	—

Backlog récord: $271B ($162B comercial / $109B defensa = ~3 años de ventas).

Guidance FY2026 SUBIÓ post-call:

Adj EPS $6.70-$6.90 (era $6.50-$6.80)
FCF $8.25-$8.75B (era $7.5-$8B)

Tariff Impact — La Razón del Sell-off Post-earnings

Categoría	Impacto FY2026
Canada/Mexico	~$250M
China	~$250M
Reciprocal	~$300M
Steel/Aluminum	~$50M
Total	~$850M

Stock cayó >4% post-earnings a pesar del beat. Mitigations en marcha pero $500M+ residual.

Patriot — La Joya del Portfolio Defense

Performance Ucrania (mayo 2023 – mayo 2026):

>140 misiles balísticos interceptados
~250 air targets neutralizados
Primer derribo confirmado de Kinzhal hipersónico (mayo 2023)

Contratos recientes:

Ukraine $3.7B (14 abril 2026) — 5 sistemas Patriot adicionales, financiado por Alemania
Taiwan NASAMS $698.9M (noviembre 2025)
Pipeline: Polonia, Rumania, Suecia, Alemania, Países Bajos, Japón

Cada Patriot system = ~$1B+. Pipeline global = $20B+ next 5 years.

F-35 Engine Core Upgrade (ECU) — P&W Win

Pentagon decision 2024: P&W ECU vs GE Aerospace XA100
P&W ECU eligida para reducir riesgo (drop-in upgrade vs nuevo motor)
Contrato sustained ~$1B+/año por 20+ años
F-35 program: 2,400+ aviones backlog (EE.UU. + 18 aliados)

GTF Recovery Curve

$2.8B accumulated provision desde 2023 (powder metallurgy issue)
AOG (Aircraft on Ground): peak 700+, -15% Q1 2026 vs Q1 2025
Recovery a niveles normales: 2030
GTF Advantage (entry late-2026): +1% fuel burn, +5,000 ciclos durabilidad

Capital Return

Dividendo subió +7.4% el 30 abril 2026: $0.73/sh trimestral, payable 11 jun 2026
Yield trailing: 1.60% (USD)
Dividendo legacy desde 1936 (89 años entre componentes)
Buybacks limitados post Trump executive order 7-ene-2026

Trump Defense Priorities

$1T defense budget proposed
NATO 5% GDP target
Executive order 7-ene-2026: limita buybacks/dividendos defense pero autoriza M&A defense industrial base
RTX como #3 contractor = beneficiario directo

Catalysts 2026-27

Q2 FY2026 earnings: 28 julio 2026 (siguiente test post-tariff)
GTF Advantage entry: late-2026
Patriot pipeline awards: Polonia, Rumania, Suecia, Japón
F-35 ECU production ramp: 2027+
NATO 5% GDP target enforcement: 2026-30

Analyst Consensus (mayo 2026)

Rating: Buy / Outperform
Mean target: ~$180-190
High: $200+
Upside vs $172.87: ~+10-15%

Riesgos Cuantificados

Tariff hit $850M FY2026 — $500M neto post-mitigations
GTF recovery 2030 — AOG -15% es first improvement, todavía 4 años hasta normal
F-35 program risk político — Trump/Musk críticas, si cut order rate revenue F135 cae
Boeing 737 MAX dependency — Collins systems exposure
Buyback restrictions — Trump exec order 7-ene-2026
Defense budget reversal Europa — si Ucrania ceasefire
Cybersecurity attacks — state actors target
CEO Chris Calio early-tenure — primer crisis tariff respondida con stock -4%

Tesis en una línea

Comprar el #3 contractor defense EE.UU. + #2 fabricante mundial motores comerciales a P/E forward 22.9x con backlog récord $271B (~3 años visibility), Patriot demand global structural (Ukraine $3.7B, Taiwan, NATO 5%), F-35 ECU win sustained $1B+/año, dividendo +7.4% subido 30-abril, GTF recovery a 2030 ya iniciada (-15% AOG Q1).

Research fecha: 5 May 2026 | Próxima revisión: Nov 2026

Esto no es asesoría financiera.

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Researched: 5/5/2026Updated: 5/5/2026Next review: 11/5/2026

This is not financial advice. Consult a certified financial advisor.

The author may hold positions in the securities discussed.

Past performance does not guarantee future results.