Top Research Reports for Microsoft, Novartis & RTX

Monday, December 15, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corp. (MSFT), Novartis AG (NVS) and RTX Corp. (RTX), as well as a micro-cap stock Air T, Inc. (AIRT). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

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You can read today's AWS here >>> Final Full Trading Week of 2025 Filled with Data

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the past year (+6.8% vs. +2.3%). The company demonstrates strong fundamentals anchored by Azure's 25% cloud market share and strategic AI integration through OpenAI. Microsoft generates exceptional operating cash flows exceeding $100 billion annually with margins above 40%, while diversified revenue across cloud, productivity software, gaming, and LinkedIn provides stability. 

The Zacks analyst expect fiscal 2026 net sales to grow 15.1% from fiscal 2025. However, Microsoft confronts intense competition from AWS and Google Cloud, escalating regulatory scrutiny, and mounting capital expenditure requirements for AI infrastructure.

Long-term debt of $43.2 billion raises concerns amid rising interest rates, straining financial flexibility. These dynamics create an investment profile balancing robust cash generation against competitive pressures and operational challenges.

(You can read the full research report on Microsoft here >>>)

Shares of Novartis have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+38.8% vs. +14.9%). The company’s performance in 2025 has been good despite generic competition for its blockbuster drug Entresto in the United States. 

Novartis has a strong and diverse portfolio with drugs like Kisqali, Kesimpta, Pluvicto and Leqvio. The uptake of Pluvicto and Scemblix has been outstanding and propels top-line growth. The Zacks anlayst model estimates for Pluvicto and Kisqali indicate a CAGR of 37.9% and 43.3%, respectively, over the next three years. 

Approval of new drugs and label expansion of existing drugs should enable Novartis to offset the adverse impacts of the generic competition for key drugs. The recent spate of acquisitions and collaborations has further strengthened its pipeline.

(You can read the full research report on Novartis here >>>)

RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past year (+54.1% vs. +28.1%). The company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Steadily improving global commercial air traffic boosts the company's sales. 

Strong volumes and a favorable mix across large commercial engines and Pratt Canada operations are expected to support the company’s growth momentum in the commercial aerospace market. This resulted in RTX registering a backlog of $251 billion as of Sept. 30, 2025. RTX also holds a solid solvency position, at least in the short term. RTX’s shares have outperformed its industry in the past year. 

Yet, the uncertainties created by the recent imposition of U.S. government-issued import tariffs pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX.

(You can read the full research report on RTX here >>>)

Shares of Air T have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+0.8% vs. -8.4%). This microcap company with a market capitalization of $54.08 million continues to show selective operational strength — with margin expansion in Commercial Aircraft & Engines, a growing backlog supporting Ground Support Equipment and steady recurring-revenue traction in Digital Solutions — all complemented by stable cash flow from its long-standing FedEx feeder operations.

However, elevated leverage, rising interest costs, thin net profitability, customer concentration and execution risks across several segments constrain earnings durability. Liquidity remains pressured by volatile working-capital needs, and recent margin gains rely partly on non-recurring asset sales. 

The valuation reflects heightened perceived risk and uncertain earnings quality, leaving upside dependent on sustained margin improvement, stronger cash generation, and clearer progress toward consistent profitability.

(You can read the full research report on Air T here >>>)

Other noteworthy reports we are featuring today include Johnson Controls International plc (JCI), Valero Energy Corp. (VLO) and Ryanair Holdings plc (RYAAY).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Adoption of Cloud and Office 365 Strength Aid Microsoft (MSFT)

Kisqali, Pluvicto Drive Novartis (NVS) Amid Generic Competition

Defense Orders Drive RTX Corp. (RTX) Amid Supply Chain Issues

Featured Reports

HVAC and Controls Aids Johnson Controls (JCI) Amid Forex Woes
Per the Zacks analyst, continued demand for HVAC and Controls within the Americas segment is likely to drive Johnson Controls' revenues. However, forex woes remain a concern for the company.

Valero (VLO) Poised to Benefit From Strong Refining Margins
The Zacks analyst believes Valero's vast, well-located refinery network and ability to run a low-cost crude position enable it to capitalize on strong refining margins, driving profitability.

Ryanair Rides on Improved Traffic, Fleet Growth Amid Rising Expenses
The Zacks Analyst likes Ryanair's measures to expand its fleet to cater to the rising travel demand. Escalated operating expenses due to high staff costs and air traffic control fees act as headwinds.

Solid Bookings To Aid Norwegian Cruise (NCLH), Costs High
Per the Zacks analyst, Norwegian Cruise is likely to benefit from solid bookings, strategic destination enhancements, and fleet expansion efforts. However, high costs are a concern.

Strategic Buyouts To Aid Federal Realty (FRT) Amid E-Commerce Risks
Per the Zacks Analyst, Federal Realty is set to gain from its strategic buyouts and mixed-use assets development. Yet, higher e-commerce adoption and debt burden are likely to affect its performance.

Investment and Expanding Customer Base Aid American States Water (AWR)
Per the Zacks analyst AWR's systematic investment to strengthen its infrastructure and increasing demand from its expanding customer base will boost its operation.

Sally Beauty's (SBH) Strategies and Happy Beauty Concept Aid Growth
Per Zacks analyst, Sally Beauty is focused on strategic priorities like customer engagement, high-margin owned brands and innovation. The company is refreshing its brand and modernizing its identity.

New Upgrades

Expedia (EXPE) Benefits From Strengthening Gross Bookings
Per the Zacks analyst, increasing gross bookings owing to rising domestic as well as international travel demand, is aiding the performance of Expedia Group.

Diverse Fee Income and Higher Rate to Support East West Bancorp (EWBC)
Per the Zacks analyst, relatively high rates, solid loans and deposit balance, diverse fee income, alongside a strong balance sheet position, will likely support East West Bancorp's financials.

Blackbaud (BLKB) Gains on Strong Portfolio and Share Buyback
Per the Zacks analyst, Blackbaud is gaining from a robust product portfolio, a steady share repurchases strategy, and margin expansion, which is contributing to growth momentum.

New Downgrades

Weatherproofing Technologies Segment Hurts Carlisle (CSL)
Per the Zacks analyst, Carlisle is struggling with weakness in the Weatherproofing Technologies unit due to slowdown in new housing and remodel activities in the residential construction market.

Exposure to Catastrophe Loss, High Expense Ail Everest (EG)
Per the Zacks analyst Everest Group's exposure to cat loss induces volatility in underwriting profit. Escalating expenses owing to higher incurred losses and loss adjustment expenses weigh on margin.

Avantor (AVTR) Navigates Competitive Pressure and Forex Volatility
Per the Zacks Analyst, Avantor faces intense competition, Labs segment softness and FX volatility, but strong product portfolio and cost transformation progress raises optimism.

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

Zacks Investment Research