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Should You Buy, Hold or Sell RTX Stock Ahead of Q1 Earnings?
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Key Takeaways
RTX is expected to benefit from strong demand across commercial aerospace and defense markets.
Rising air travel likely boosted RTX's aftermarket services and jet engine demand.
RTX stock surged 56.9% in a year, while supply-chain issues and cost pressures remain concerns.
RTX Corporation (RTX - Free Report) is slated to report first-quarter 2026 results on April 21, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $21.55 billion, indicating an improvement of 6.2% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.52 per share, implying growth of 3.4% from the prior-year quarter’s reported figure.
Image Source: Zacks Investment Research
RTX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.59%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for RTX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Some stocks in the same industry that also have the combination of factors indicating an earnings beat are Huntington Ingalls Industries (HII - Free Report) and Northrop Grumman (NOC - Free Report) . HII and NOC have an Earnings ESP of +3.32% and +0.22%, respectively. Northrop Grumman carries a Zacks Rank of 2, while Huntington carries a Zacks Rank of 3 at present.
Key Factors to Consider
Rising flight hours, supported by steady growth in both domestic and international air travel, continue to drive strong demand for commercial aircraft aftermarket services. This trend is likely to have supported RTX’s commercial aftermarket sales in the first quarter of 2026.
At the same time, increasing air passenger traffic is fueling demand for commercial jet engines, which is expected to have benefited RTX’s commercial original equipment manufacturer (OEM) sales. In this context, the upcoming quarterly results are likely to reflect healthy order activity, particularly for RTX’s geared turbofan (GTF) engines.
Overall, solid momentum across both commercial OEM and aftermarket channels is expected to have supported revenue growth in RTX’s Pratt & Whitney and Collins Aerospace segments in the to-be-reported quarter.
On the defense side, strong sales of military engines for key programs, including the F-35, are likely to have supported Pratt & Whitney’s top-line performance in the first quarter.
In addition, higher demand for RTX’s integrated air and missile defense systems, driven by rising global defense spending amid heightened geopolitical tensions, is expected to have boosted revenues at the Raytheon segment.
Price Performance
RTX’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 56.9% in the time frame, outperforming the Zacks aerospace-defense industry’s growth of 30.2%. It has also outpaced the broader Zacks Aerospace sector’s return of 32.7% as well as the S&P 500’s gain of 34.5%.
Image Source: Zacks Investment Research
A similar stellar performance can be seen in the share price return of other industry players like Huntington and Northrop Grumman, which have witnessed a surge of 84.6% and 26.5%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 29.00X, a discount to its industry’s average of 32.50X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry’s P/E ratio.
Image Source: Zacks Investment Research
However, its industry peers are currently trading at a discount compared with RTX. While the forward 12-month price/earnings multiple for Huntington is 22.04, the same for Northrop Grumman is 23.66.
Investment Thesis
RTX is well-positioned to benefit from long-term growth in both commercial aerospace and defense markets. The recovery in global air travel and strong defense spending from the United States and its allies should support steady revenue growth and provide good visibility through a strong order backlog. Its diversified business and solid free cash flow also help it invest in growth while returning value to shareholders.
However, some near-term challenges remain. Supply-chain issues, tariff-related costs and possible operational disruptions could affect margins and delay revenues, despite strong demand. While the company is working to manage these challenges, how well it handles them will be important for its performance in the coming quarters.
End Note
RTX looks well-positioned ahead of its first-quarter earnings, supported by strong demand in both its commercial aerospace and defense segments, a solid backlog and healthy cash flow.
However, after a strong run in the stock over the past year and with near-term challenges like tariffs, supply-chain issues and cost pressures still present, it may be better to take a cautious view. The stock appears more suitable for holding rather than adding new positions at this point.
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Should You Buy, Hold or Sell RTX Stock Ahead of Q1 Earnings?
Key Takeaways
RTX Corporation (RTX - Free Report) is slated to report first-quarter 2026 results on April 21, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $21.55 billion, indicating an improvement of 6.2% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.52 per share, implying growth of 3.4% from the prior-year quarter’s reported figure.
Image Source: Zacks Investment Research
RTX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.59%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for RTX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
RTX has an Earnings ESP of +1.68% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Worth a Look
Some stocks in the same industry that also have the combination of factors indicating an earnings beat are Huntington Ingalls Industries (HII - Free Report) and Northrop Grumman (NOC - Free Report) . HII and NOC have an Earnings ESP of +3.32% and +0.22%, respectively. Northrop Grumman carries a Zacks Rank of 2, while Huntington carries a Zacks Rank of 3 at present.
Key Factors to Consider
Rising flight hours, supported by steady growth in both domestic and international air travel, continue to drive strong demand for commercial aircraft aftermarket services. This trend is likely to have supported RTX’s commercial aftermarket sales in the first quarter of 2026.
At the same time, increasing air passenger traffic is fueling demand for commercial jet engines, which is expected to have benefited RTX’s commercial original equipment manufacturer (OEM) sales. In this context, the upcoming quarterly results are likely to reflect healthy order activity, particularly for RTX’s geared turbofan (GTF) engines.
Overall, solid momentum across both commercial OEM and aftermarket channels is expected to have supported revenue growth in RTX’s Pratt & Whitney and Collins Aerospace segments in the to-be-reported quarter.
On the defense side, strong sales of military engines for key programs, including the F-35, are likely to have supported Pratt & Whitney’s top-line performance in the first quarter.
In addition, higher demand for RTX’s integrated air and missile defense systems, driven by rising global defense spending amid heightened geopolitical tensions, is expected to have boosted revenues at the Raytheon segment.
Price Performance
RTX’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 56.9% in the time frame, outperforming the Zacks aerospace-defense industry’s growth of 30.2%. It has also outpaced the broader Zacks Aerospace sector’s return of 32.7% as well as the S&P 500’s gain of 34.5%.
Image Source: Zacks Investment Research
A similar stellar performance can be seen in the share price return of other industry players like Huntington and Northrop Grumman, which have witnessed a surge of 84.6% and 26.5%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 29.00X, a discount to its industry’s average of 32.50X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry’s P/E ratio.
Image Source: Zacks Investment Research
However, its industry peers are currently trading at a discount compared with RTX. While the forward 12-month price/earnings multiple for Huntington is 22.04, the same for Northrop Grumman is 23.66.
Investment Thesis
RTX is well-positioned to benefit from long-term growth in both commercial aerospace and defense markets. The recovery in global air travel and strong defense spending from the United States and its allies should support steady revenue growth and provide good visibility through a strong order backlog. Its diversified business and solid free cash flow also help it invest in growth while returning value to shareholders.
However, some near-term challenges remain. Supply-chain issues, tariff-related costs and possible operational disruptions could affect margins and delay revenues, despite strong demand. While the company is working to manage these challenges, how well it handles them will be important for its performance in the coming quarters.
End Note
RTX looks well-positioned ahead of its first-quarter earnings, supported by strong demand in both its commercial aerospace and defense segments, a solid backlog and healthy cash flow.
However, after a strong run in the stock over the past year and with near-term challenges like tariffs, supply-chain issues and cost pressures still present, it may be better to take a cautious view. The stock appears more suitable for holding rather than adding new positions at this point.