RTX Research Update — August 28, 2026
Updated Thesis
RTX Corporation is a diversified aerospace and defense leader operating through Collins Aerospace, Pratt & Whitney, and Raytheon, providing advanced systems and services to commercial and government customers globally. The company has demonstrated strong recent momentum, with revenue growth of 14.5% and earnings growth of 29.1% in the most recent quarter, reflecting robust demand across its segments. However, the stock trades at a very expensive valuation relative to its five-year history, with a P/E of 36.98 and EV/EBITDA of 19.68, yet our fair value estimate of $257.36 implies 21.4% upside from the current price of $212.08.
The investment grade as of this refresh is B — solid business quality. High-tier business, fair valuation with 21% upside to fair value.
Grade Change
In this research cycle, the investment grade for RTX Corporation moved from D to B. High-tier business, fair valuation with 21% upside to fair value.
Key Metrics at a Glance
- Revenue growth: +14.5% year over year
- Net margin: 8.3%
- Fair value upside: +21.4% to our estimate of $257
Current price: $212.08
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)