RTX

RTX Corp

Industrials • CIK: 0000101829

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Market Cap
$259.29B
P/E (TTM)
35.7x
Rev Growth (TTM)
+10.6%
Net Margin (TTM)
8.0%
FCF Yield (TTM)
3.1%
FCF Margin (TTM)
8.8%

LATEST EARNINGS

Q1 2026
27 days ago
View source
Revenue
$22.08B
+9.0%
Net Income
$2.06B
+34.0%
EPS
$1.51
+32.5%
Operating
11.6% +1.6%
Net
9.3% +1.8%
  • Consolidated sales of $22.1 billion, up 9 percent versus prior year and 10 percent organically.
  • Adjusted EPS of $1.78, up 21 percent versus prior year.
  • Operating cash flow of $1.9 billion, up 42% YoY, and free cash flow of $1.3 billion, up 65% YoY.
  • Full year 2026 outlook raised for adjusted sales and adjusted EPS.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$8.0B
Q1 '26
$1.2B-60%
Q4 '25
$3.0B-22%
FCF Margin
TTM8.8%
Q1 '265.5%-56%
Sector: 4.7%Above Avg
OCF Margin12.3%
OCF/NI1.53x
CapEx Coverage4.2x
FCF Yield3.1%
FCF Growth (2Y)+40%
Cash Conversion Cycle
53 days
DSO: 53+DIO: DPO:

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldFY
FY1.3%
Div Yield1.3%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.3%
FCF Payout Ratio43.8%
Free Cash Flow (TTM)$8.0B
Stock Repurchases (FY)$0
Capital Return / FCF43.8%
Est. Dividends Paid (TTM)$3.5B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
7.6%
Stable
+0.0% YoY+6.7%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.9%
8Q: 8.2%
Asset Turnover
0.54x
8Q: 0.52x
Leverage (1+D/E)
1.50x
D/E: 0.50x
DuPont: 7.1%7.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.49x
8Q:5.29x
+48.7%
Invested Cap Turn
0.86x
8Q:0.83x
+12.8%
CapEx Intensity
2.5%
8Q:2.1%
CapEx/Depreciation
0.60x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$90.4B
$22.1B8.9%
$24.2B7.8%
$22.5B4.2%
$21.6B6.3%
$20.3B6.1%
$21.6B7.6%
$20.1B1.9%
$19.7B
Operating Income
$9.8B
$2.6B1.6%
$2.6B2.9%
$2.5B17.6%
$2.1B5.5%
$2.0B1935.0%
$100.0M95.1%
$2.0B283.4%
$529.0M
Net Income
$7.3B
$2.1B26.9%
$1.6B15.4%
$1.9B15.8%
$1.7B7.9%
$1.5B3.6%
$1.5B0.7%
$1.5B1226.1%
$111.0M
Operating Cash Flow
$11.1B
$1.9B55.5%
$4.2B10.2%
$4.6B912.9%
$458.0M64.9%
$1.3B16.4%
$1.6B38.1%
$2.5B7.7%
$2.7B
Free Cash Flow
$8.0B
$1.2B60.3%
$3.0B21.9%
$3.9B2112.4%
$-194.0M128.2%
$688.0M109.8%
$328.0M82.2%
$1.8B9.8%
$2.0B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
35.7x
Volatile
8Q: 117.4x-63757%
Valuation Lenses
Earnings
35.7x
vs sector
Cash Flow
36.3x
EV/FCF vs
Growth-Adj
0.6xPEG
Undervalued for growth
Quality-Adj
4.7P/E per %ROIC
ROIC: 7.6%
Shareholder Returns
Dividend
1.3%
Buyback
Total Yield
1.3%
Market Cap$259.29B
EV$289.45B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
74/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
11.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
7.6%
8Q:
+6.7%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.9%
Asset Turnover: 0.54x

Earnings Quality

Cash Conversion

1.53x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover0.86x

Working Capital

Cash Conversion Cycle53 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
71/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
10.6%
OpInc Growth YoY
25.6%
EPS Growth YoY
56.3%
FCF 3Y CAGR
40.1%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
Operating
10.9%
Above Avg in sector
Net
8.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.8 pts
FCF: 8.8% | Net: 8.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $25.41B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.50x
Balance sheet risk & solvency analysis