# RTX (RTX.US)

Canonical: https://gigainvestors.com/s/RTX

Analysis as of: 2026-10-16T07:31:42.616Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $186.95 per share; close as of 2026-10-15.

Estimated value: low $79.07 per share, central $92.38 per share, high $106.71 per share. Buy at or below the central value $92.38 per share. Valuation as of 2026-10-16T07:31:42.616Z; scenarios are not confidence intervals.

Expected annual return: 6.3% at the stated quote. About 6.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.54×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.08×

- FY2019: 0.11×

- FY2020: -0.03×

- FY2021: 0.08×

- FY2022: 0.08×

- FY2023: 0.05×

- FY2024: 0.08×

- FY2025: 0.10×

- LTM to Jun 2026: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.1%

- ROIC, second-lowest year: 6.3%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 20.2%

- Recent gross margin (lower of latest and 3-year median): 20.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: 6.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 26.2%

- FY2018: 6.3%

- FY2019: 9.8%

- FY2020: -3.5%

- FY2021: 9.5%

- FY2022: 10.4%

- FY2023: 7.0%

- FY2024: 11.8%

- FY2025: 17.1%

- LTM to Jun 2026: 19.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $33B

- Net income, five-year total: $24B

- Return on incremental invested capital: 37.5%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 33.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.58×

- FY2022: 1.26×

- FY2023: 1.53×

- FY2024: 1.36×

- FY2025: 1.26×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 26.2% vs 11.8%

- Per-share earnings: 3.85 to 3.55 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: $158B

- Cumulative retained earnings: $3.8B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.0%

- Per-share value change: -$0.30

- Per-share value, starting three-year median: $3.85

- Per-share value, ending three-year median: $3.55

- Buybacks concentrated in cheaper years (correlation): 0.33

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $66B

- Cumulative net income, 10 years: $41B

- ROIC, first three-year median: 26.2%

- ROIC, last three-year median: 11.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.85

- FY2017: $3.58

- FY2018: $4.09

- FY2019: $4.03

- FY2020: -$2.59

- FY2021: $2.56

- FY2022: $3.50

- FY2023: $2.35

- FY2024: $3.55

- FY2025: $4.96

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.3%

- FY2017: -1.1%

- FY2018: -0.8%

- FY2019: -2.4%

- FY2020: -4.4%

- FY2021: -2.0%

- FY2022: -1.2%

- FY2023: -2.8%

- FY2024: -1.5%

- FY2025: -2.2%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 11% a year for ten years · "RTX’s US$50b Patriot Deal Extends Backlog And Cash Flow Visibility" (finance.yahoo.com, Apr 2026) · sales +5.5%

Story as of 2026-10-16T09:59:32.175Z; price observation 2026-10-15.

Price needs cash profits to grow 11% a year for ten years

- 2025-05-14: RTX's Arm Wins a $2.13B Contract to Aid Standard Missile-3 Program ([finance.yahoo.com](https://finance.yahoo.com/news/rtxs-arm-wins-2-13b-143200521.html))

- 2025-06-25: RTX (NYSE:RTX) Secures US$250 Million Contract With Japan's MELCO for Missile Production ([finance.yahoo.com](https://finance.yahoo.com/news/rtx-nyse-rtx-secures-us-174055579.html))

- 2025-07-23: RTX outlines $84.75B–$85.5B sales outlook and raises dividend 8% as backlog climbs to $236B ([seekingalpha.com](https://seekingalpha.com/news/4470356-rtx-outlines-84_75b-85_5b-sales-outlook-and-raises-dividend-8-percent-as-backlog-climbs-to?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-27: RTX Posts Higher Sales, Issues Upbeat Outlook ([finance.yahoo.com](https://finance.yahoo.com/m/2de92d27-daeb-38a8-87ad-21424c5d1e63/rtx-posts-higher-sales%2C.html))

- 2026-07-24: RTX Beats on Q2 Earnings, Lifts Full-Year 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rtx-beats-q2-earnings-lifts-140000435.html))

- 2026-09-18: RTX Slips 1% as Tariffs Raise FAA's Radar Bill ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rtx-slips-1-tariffs-raise-202114828.html))

### Sales · FY2025–2026

sales +5.5%; source https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm; observed 2026-02-06.

- FY2017: $60B 

- FY2018: $35B 

- FY2019: $45B 

- FY2020: $57B 

- FY2021: $64B 

- FY2022: $67B 

- FY2023: $69B 

- FY2024: $81B 

- FY2025: $89B 

- FY2026: $94B 

### Gross margin · FY2026

gross margin 20.3%; source https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm; observed 2026-02-06.

- FY2017: 26.1% 

- FY2018: 20.9% 

- FY2019: 23.7% 

- FY2020: 15.1% 

- FY2021: 19.4% 

- FY2022: 20.4% 

- FY2023: 17.5% 

- FY2024: 19.1% 

- FY2025: 20.1% 

- FY2026: 20.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 88.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm (filed 2026-02-06); FY2025: revenue 88603000000; grossProfit 17789000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RTX.US: RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

### Why customers stay

Margins ranged from 17.5% to 20.1% during 2023–25; it earns 10.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2023: grossProfit / revenue = 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2024: grossProfit / revenue = 19.1%.

- Source: https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm (filed 2026-02-06); FY2025: grossProfit / revenue = 20.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); 10-year return on capital observations [[2017,0.2618663366336634],[2018,0.06292439180322353],[2019,0.09787298688150692],[2020,-0.035183543557703645],[2021,0.09482739658985168],[2022,0.10403646233629726],[2023,0.07011441760850778],[2024,0.11842375171803898],[2025,0.17119511744359728],[2026,0.19367315876581156]]; median 0.10095472460890209. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 50 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2016: growth capex 117000000; upkeep 1962000000; owner earnings 5055000000. Growth capex / owner earnings = 0.02314540059347181.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2017: growth capex 254000000; upkeep 2140000000; owner earnings 4552000000. Growth capex / owner earnings = 0.05579964850615114.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2018: growth capex 0; upkeep 2302000000; owner earnings 4863000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2019: growth capex 0; upkeep 2607000000; owner earnings 5638000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2021: growth capex 0; upkeep 2322000000; owner earnings 6099000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2022: growth capex 0; upkeep 2775000000; owner earnings 6530000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2023: growth capex 0; upkeep 2415000000; owner earnings 5176000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2024: growth capex 0; upkeep 2625000000; owner earnings 6513000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm (filed 2026-02-06); FY2025: growth capex 0; upkeep 2627000000; owner earnings 8483000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); Dividend observations: [[2016,2069000000],[2017,2074000000],[2018,2170000000],[2019,2442000000],[2020,2732000000],[2021,2957000000],[2022,3128000000],[2023,3239000000],[2024,3217000000],[2025,3574000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm (filed 2026-02-06); FY2025: cash repurchases 50000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RTX.US SharesStats.PercentInsiders = 0.091 percentage points; cache date 2026-10-16.

### What could break it

"We face risks relating to our U.S. government contracts and programs" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm (filed 2026-02-06); We face risks relating to our U.S. government contracts and programs

### What the price says

The price assumes cash profits grow 11% yearly over ten years; actual growth was 1.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); Ten-year compound average after fade. Initial solved rate 0.14527345848422402. Price 186.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.260064665590427 → FY2025 6.254054851076378. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $67.79 per share

- 2016-12: $68.99 per share

- 2017-01: $69.02 per share

- 2017-02: $70.83 per share

- 2017-03: $70.62 per share

- 2017-04: $74.88 per share

- 2017-05: $76.32 per share

- 2017-06: $76.85 per share

- 2017-07: $74.62 per share

- 2017-08: $75.34 per share

- 2017-09: $73.05 per share

- 2017-10: $75.37 per share

- 2017-11: $76.43 per share

- 2017-12: $80.28 per share

- 2018-01: $86.85 per share

- 2018-02: $84.80 per share

- 2018-03: $79.18 per share

- 2018-04: $75.61 per share

- 2018-05: $78.55 per share

- 2018-06: $78.68 per share

- 2018-07: $85.42 per share

- 2018-08: $82.88 per share

- 2018-09: $87.99 per share

- 2018-10: $78.17 per share

- 2018-11: $76.68 per share

- 2018-12: $67.01 per share

- 2019-01: $74.30 per share

- 2019-02: $79.09 per share

- 2019-03: $81.11 per share

- 2019-04: $89.75 per share

- 2019-05: $79.48 per share

- 2019-06: $81.94 per share

- 2019-07: $84.08 per share

- 2019-08: $81.96 per share

- 2019-09: $85.92 per share

- 2019-10: $90.36 per share

- 2019-11: $93.35 per share

- 2019-12: $94.25 per share

- 2020-01: $94.52 per share

- 2020-02: $82.18 per share

- 2020-03: $59.36 per share

- 2020-04: $64.81 per share

- 2020-05: $64.52 per share

- 2020-06: $61.62 per share

- 2020-07: $56.68 per share

- 2020-08: $61.00 per share

- 2020-09: $57.54 per share

- 2020-10: $54.32 per share

- 2020-11: $71.72 per share

- 2020-12: $71.51 per share

- 2021-01: $66.73 per share

- 2021-02: $71.99 per share

- 2021-03: $77.27 per share

- 2021-04: $83.24 per share

- 2021-05: $88.71 per share

- 2021-06: $85.31 per share

- 2021-07: $86.95 per share

- 2021-08: $84.76 per share

- 2021-09: $85.96 per share

- 2021-10: $88.86 per share

- 2021-11: $80.92 per share

- 2021-12: $86.06 per share

- 2022-01: $90.19 per share

- 2022-02: $102.70 per share

- 2022-03: $99.07 per share

- 2022-04: $94.91 per share

- 2022-05: $95.12 per share

- 2022-06: $96.11 per share

- 2022-07: $93.21 per share

- 2022-08: $89.75 per share

- 2022-09: $81.86 per share

- 2022-10: $94.82 per share

- 2022-11: $98.72 per share

- 2022-12: $100.92 per share

- 2023-01: $99.85 per share

- 2023-02: $98.09 per share

- 2023-03: $97.93 per share

- 2023-04: $99.90 per share

- 2023-05: $92.14 per share

- 2023-06: $97.96 per share

- 2023-07: $87.93 per share

- 2023-08: $86.04 per share

- 2023-09: $71.97 per share

- 2023-10: $81.39 per share

- 2023-11: $81.48 per share

- 2023-12: $84.14 per share

- 2024-01: $91.12 per share

- 2024-02: $89.67 per share

- 2024-03: $97.53 per share

- 2024-04: $101.52 per share

- 2024-05: $107.81 per share

- 2024-06: $100.39 per share

- 2024-07: $117.49 per share

- 2024-08: $123.34 per share

- 2024-09: $121.16 per share

- 2024-10: $120.99 per share

- 2024-11: $121.83 per share

- 2024-12: $115.72 per share

- 2025-01: $128.95 per share

- 2025-02: $132.99 per share

- 2025-03: $132.46 per share

- 2025-04: $126.13 per share

- 2025-05: $136.48 per share

- 2025-06: $146.02 per share

- 2025-07: $157.57 per share

- 2025-08: $158.60 per share

- 2025-09: $167.33 per share

- 2025-10: $178.50 per share

- 2025-11: $174.91 per share

- 2025-12: $183.40 per share

- 2026-01: $200.93 per share

- 2026-02: $202.62 per share

- 2026-03: $192.90 per share

- 2026-04: $176.07 per share

- 2026-05: $179.66 per share

- 2026-06: $189.73 per share

- 2026-07: $215.22 per share

- 2026-08: $207.73 per share

- 2026-09: $185.65 per share

- 2026-10: $183.02 per share

## Annual estimated value (USD per share)

- FY2016: low $49.12 per share, central $55.59 per share, high $63.94 per share

- FY2017: low $52.65 per share, central $59.79 per share, high $68.50 per share

- FY2018: low $34.34 per share, central $38.48 per share, high $44.01 per share

- FY2019: low $47.83 per share, central $54.02 per share, high $62.26 per share

- FY2020: low $45.87 per share, central $51.42 per share, high $58.80 per share

- FY2021: low $48.53 per share, central $54.62 per share, high $62.73 per share

- FY2022: low $51.32 per share, central $57.94 per share, high $66.76 per share

- FY2023: low $53.34 per share, central $60.19 per share, high $69.32 per share

- FY2024: low $55.93 per share, central $63.24 per share, high $72.96 per share

- FY2025: low $74.13 per share, central $86.66 per share, high $100.16 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:28.062Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/101829/000010182926000006/rtx-20251231.htm); period 2025-12-31, filed 2026-02-06.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.