RTX Research Update — September 18, 2026
Updated Thesis
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electronics, and decades-long aftermarket service relationships, evidenced by a 14.5% revenue increase and 29.1% earnings increase in the most recent quarter, an 11.8% return on equity, and $8.91 in free cash flow per share. At $193.54, the shares trade at 33.75 times trailing earnings, 21.73 times free cash flow, and 18.13 times EV/EBITDA — a very expensive regime relative to the company's own five-year history — yet the blended fair value estimate of $257.36 implies 33.0% upside, and the analyst consensus target of $238.50 implies 23.2% upside.
The investment grade as of this refresh is B — solid business quality. A-tier business, C-tier valuation on historical multiples but B-tier on blended fair value with 33% upside.
Key Metrics at a Glance
- Revenue growth: +14.5% year over year
- Net margin: 8.3%
- Fair value upside: +33.0% to our estimate of $257
Current price: $193.54
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)