RTX Research Update — June 20, 2026
Updated Thesis
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue growth of 8.7% and earnings growth of 34.1% in the most recent quarter, the stock trades at a very expensive valuation with a P/E of 34.31 and EV/EBITDA of 18.28, well above its five-year historical range.
The investment grade as of this refresh is D — solid business quality. Medium-tier business, very expensive valuation with 25.2% downside to $138.81 fair value
Key Metrics at a Glance
- Revenue growth: +8.7% year over year
- Net margin: 8.0%
- Forward P/E: 34.3x
- Fair value upside: -25.2% to our estimate of $139
Current price: $185.60
These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.
Our 12–18 Month Outlook
Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. RTX Corporation remains in our covered universe with a solid-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.
Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.
[View full RTX research →](/stocks/RTX)