Improved Revenue and Earnings Growth Powered RTX Corporation's (RTX) Performance

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter “Carillon Eagle Growth & Income Fund”. A copy of the letter can be downloaded here. 2025 marked a positive period for the equity market. The S&P 500 Index returned 2.7% in Q4 and finished the year up 17.9%. The year started with potential disruptions and heightened volatility, while it ended with optimism driven by strong AI investment, clarity in policies, and U.S. Federal Reserve (Fed) interest rate cuts. The market’s performance was significantly affected by the communication services and technology sectors. From a return‑driver standpoint, the market expansion in the year was driven by earnings growth. The firm observes favorable conditions as 2026 approaches, and believes it can achieve another year of strong equity returns. The Fund holds net assets of $493.06 million across 48 holdings. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund highlighted RTX Corporation (NYSE:RTX) as a notable contributor. RTX Corporation (NYSE:RTX) is an aerospace and defense company. The one-month return of RTX Corporation (NYSE:RTX) was -1.66%, and its shares gained 56.16% of their value over the last 52 weeks. On February 11, 2026, RTX Corporation (NYSE:RTX) stock closed at $196.51 per share, with a market capitalization of $262 billion.

Carillon Eagle Growth & Income Fund stated the following regarding RTX Corporation (NYSE:RTX) in its fourth quarter 2025 investor letter:

"RTX Corporation's (NYSE:RTX) positive performance was a result of a strong third quarter earnings report that demonstrated improved revenue and earnings growth. Key end markets such as commercial aerospace and global defense are poised to continue to push excess growth for the company over the next several years. As such, we remain positive on RTX."

RTX Corporation (NYSE:RTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 76 hedge fund portfolios held RTX Corporation (NYSE:RTX) at the end of the third quarter, up from 71 in the previous quarter. RTX Corporation (NYSE:RTX) delivered $24.2 billion in adjusted sales for the fourth quarter of 2025, an increase of 12% on an adjusted basis and 14% organically. While we acknowledge the potential of RTX Corporation (NYSE:RTX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered RTX Corporation (NYSE:RTX) and shared the list of best American defense stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.