It has been about a month since the last earnings report for RTX (RTX). Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is RTX due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RTX Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
RTX Corporation’s 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
At this time, RTX has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
RTX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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