RTX Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

RTX Corporation’s RTX fourth-quarter 2025 adjusted earnings per share (EPS) of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54. 

Including one-time items, the company reported GAAP earnings of $1.19 per share, marking an improvement from $1.10 in the prior-year quarter. 

For 2025, the company reported adjusted earnings of $6.29 per share compared with $5.73 a year ago.

RTX’s Total Revenues

RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.

For 2025, the company reported revenues of $88.6 billion compared with $80.74 billion last year.

RTX’s Operational Performance

Total costs and expenses increased nearly 10.9% year over year to $21.95 billion in the quarter. The company generated an adjusted operating profit of $2.6 billion compared with $2.1 billion in the prior-year quarter.

RTX posted an interest expense of $400 million compared with $486 million in the prior-year period.

RTX’s Segmental Performance

Collins Aerospace: Sales in this segment totaled $7.74 billion, up 3% year over year.  This improvement was driven by a 9% increase in commercial OE, a 13% increase in commercial aftermarket, and a 2% increase in defense.

Pratt & Whitney: This segment’s sales totaled $9.5 billion, reflecting an improvement of 25% from the year-ago quarter’s reported number. Sales growth was driven by a 28% increase in commercial OE, a 21% increase in commercial aftermarket and a 30% increase in military. The increase in commercial OE sales was driven by higher volume and favorable mix in large 
commercial engines, while the increase in commercial aftermarket was driven by higher volume, including heavier content, in large commercial engines and Pratt Canada.

Raytheon: This segment recorded sales of $7.66 billion, up 7% year over year. This was driven by higher volume on land and air defense systems, including Patriot and GEM-T, as well as higher volume on naval programs, including Evolved SeaSparrow Missile and Tomahawk.

RTX’s Financial Update

RTX had cash and cash equivalents of $7.44 billion as of Dec. 31, 2025, compared with $5.58 billion as of Dec. 31, 2024.

The long-term debt totaled $34.29 billion as of Dec. 31, 2025, compared with $38.73 billion as of Dec. 31, 2024.

Net cash flow from operating activities for 2025 was $10.57 billion compared with $7.16 billion last year. 

Free cash flow for 2025 totaled $7.94 billion compared with $4.53 billion a year ago.

RTX’s Guidance

The company now expects 2026 adjusted EPS to be in the band of $6.60-$6.80. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.66, which is lower than the midpoint of the company’s guided range. 

RTX expects 2026 sales to be in the range of $92-$93 billion. 

RTX expects to generate free cash flow of $8.25-$8.75 billion in 2026.

RTX’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Defense Releases

Textron TXT is slated to report fourth-quarter results on Jan. 28, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.74 per share, indicating year-over-year growth of 29.9%.

TXT’s long-term (three to five years) earnings growth rate is 10.03%. The Zacks Consensus Estimate for third-quarter sales is pinned at $4.14 billion, indicating year-over-year growth of 14.6%.

General Dynamics GD is slated to report fourth-quarter results on Jan. 28, before market open. The Zacks Consensus Estimate for earnings is pegged at $4.11 per share, which indicates a year-over-year decrease of 0.96%. 

GD’s long-term earnings growth rate is 11.78%. The Zacks Consensus Estimate for sales is pegged at $13.8 billion, which indicates a year-over-year increase of 3.5%. 

L3Harris Technologies LHX is slated to report fourth-quarter results on Jan. 29, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.76 per share.

LHX’s long-term earnings growth rate is 12.93%. The Zacks Consensus Estimate for fourth-quarter sales is pinned at $5.8 billion, indicating year-over-year growth of 5%.

 

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