RTX to Report Q3 Earnings: What's in Store for the Stock?

RTX Corporation RTX is scheduled to release third-quarter 2025 results on Oct. 21, before market open. The company delivered an earnings surprise of 7.59% in the last reported quarter. 

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors Likely to Influence RTX’s Q3 Results

The aftermarket demand for commercial aircraft has been steadily rising due to longer flight hours, backed by steady growth in both domestic and international commercial aviation traffic. This trend must have boosted RTX's commercial aftermarket sales in the third quarter of 2025. 

On the other hand, increasing commercial air passenger travel rates are boosting demand for commercial jet engines, which, in turn, can be expected to have bolstered commercial original equipment manufacturer (OEM) sales for RTX. In line with this, we may expect the upcoming quarterly results to reflect solid order activity, in particular, for RTX’s GTF units. 

Robust sales momentum across both commercial OEM and aftermarket channels is expected to have boosted the top line for the Pratt & Whitney and Collins Aerospace segments in the to-be-reported quarter.

On the defense side, solid sales of military engines for prominent military programs like F-35 must have also boosted Pratt & Whitney’s top-line performance in the third quarter. 

Moreover, higher sales volume for RTX’s combat-proven integrated air and missile defense systems, backed by the rapidly growing demand for air dominance from nations worldwide amid intensifying geopolitical tensions, can be expected to have boosted its Raytheon unit’s revenues.

Consequently, sales growth across all its three major segments must have bolstered RTX’s third-quarter revenues. 

On the bottom-line front, the impact of higher tariffs might have offset the higher sales volume and improved operational performance across RTX’s three business segments, thereby weighing on its earnings. To this end, the company’s efforts to improve mitigate tariff headwinds through measures like qualifying additional parts for military duty-free exemptions and maximizing the use of free trade zones should get duly reflected in the upcoming results. 

RTX’s cash flow is expected to have witnessed growth on the back of segmental profit and working capital improvements, including the recovery from the work stoppage (in the second quarter) at its Pratt & Whitney unit.

RTX’s Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.42 per share, indicating a year-over-year decline of 2.1%.

The Zacks Consensus Estimate for revenues is pinned at $21.48 billion, indicating a year-over-year increase of 6.9%.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for RTX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
 

RTX Corporation Price and EPS Surprise

RTX Corporation price-eps-surprise | RTX Corporation Quote

Earnings ESP: The company’s Earnings ESP is +1.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same industry as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

GE Aerospace GE is likely to come up with an earnings beat when it announces third-quarter results on Oct. 21, before market open. It has an Earnings ESP of +2.01% and a Zacks Rank #3 at present.

The consensus estimate for GE’s third-quarter sales suggests an improvement of 15.6% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 16.1% for the trailing four quarters.

Howmet Aerospace HWM is expected to come up with an earnings beat when it reports third-quarter results on Oct. 30, before market open. It has an Earnings ESP of +0.30% and a Zacks Rank #3 at present.

The consensus estimate for HWM’s third-quarter sales implies an improvement of 11.5% from the year-ago quarter’s level. The Zacks Consensus Estimate for third-quarter earnings is pinned at 91 cents per share, indicating year-over-year growth of 28.2%. 

Embraer SA ERJ is expected to post an earnings beat when it announces third-quarter results very soon. It has an Earnings ESP of +5.00% and a Zacks Rank #3 at present.

ERJ’s long-term earnings growth rate is 13.29%. The Zacks Consensus Estimate for third-quarter sales is pinned at $2.06 billion, indicating a year-over-year increase of 21.8%.  
 

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This article originally published on Zacks Investment Research (zacks.com).

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