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Should You Buy, Hold or Sell RTX Stock Ahead of Q2 Earnings?
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Key Takeaways
RTX's Q2 revenue and EPS estimates point to year-over-year growth, supported by broad business momentum.
Commercial aftermarket, OEM and military engine demand may support Pratt & Whitney and Collins Aerospace.
Patriot and Standard Missile volume may lift Raytheon, though supply-chain constraints remain a headwind.
RTX Corporation (RTX - Free Report) is slated to report second-quarter 2026 results on July 23, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $22.83 billion, indicating an improvement of 5.8% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.66 per share, implying growth of 6.4% 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 12.65%.
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 General Dynamics (GD - Free Report) and L3Harris Technologies (LHX - Free Report) . GD and LHX have an Earnings ESP of +2.39% and +3.02%, respectively. General Dynamics carries a Zacks Rank of 2, while L3Harris Technologies has a Zacks Rank of 3 at present.
Key Factors to Consider for RTX’s Q2 Performance
Rising flight hours, driven by continued growth in both domestic and international air travel, are sustaining strong demand for commercial aircraft aftermarket services. This trend is likely to have supported RTX's commercial aftermarket sales in the second quarter of 2026.
Meanwhile, higher air passenger traffic continues to boost demand for commercial jet engines, which is expected to have supported RTX's commercial original equipment manufacturer (OEM) sales. Against this backdrop, the company's upcoming quarterly results are likely to reflect solid order activity, particularly for its 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 second quarter.
In addition, higher demand for RTX's integrated air and missile defense systems, supported by increased production on Patriot programs amid rising global defense spending, is expected to have boosted revenues at the Raytheon segment. Higher volume on Standard Missile programs is also likely to have contributed to the segment's top-line growth.
RTX’s Price Performance
RTX’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 30.4% in the time frame, outperforming the Zacks aerospace-defense industry’s decline of 1.5%. It has also outpaced the broader Zacks Aerospace sector’s return of 0.9% as well as the S&P 500’s gain of 21.1%.
Image Source: Zacks Investment Research
A similar stellar performance can be seen in the share price return of other industry players like General Dynamics and L3Harris Technologies, which have witnessed a surge of 24.6% and 6.1%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 26.76X, a discount to its industry’s average of 31.78X. 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 General Dynamics is 21.09X, the same for L3Harris Technologies is 22.22X.
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, persistent supply-chain constraints remain a near-term headwind, as they could continue to affect production schedules and delay revenue recognition despite strong underlying demand.
End Note
RTX appears well-positioned ahead of its second-quarter earnings, supported by solid demand across its commercial aerospace and defense businesses, a strong backlog and healthy cash flow generation. Continued strength in commercial aviation, robust defense spending and sustained order momentum should support the company's long-term growth prospects.
Considering its price performance and discounted valuation, investors might consider adding RTX stock to their portfolios right now.
View the Zacks #1 Rank List
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Should You Buy, Hold or Sell RTX Stock Ahead of Q2 Earnings?
Key Takeaways
RTX Corporation (RTX - Free Report) is slated to report second-quarter 2026 results on July 23, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $22.83 billion, indicating an improvement of 5.8% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.66 per share, implying growth of 6.4% 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 12.65%.
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 +2.02% and a Zacks Rank of 2 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 General Dynamics (GD - Free Report) and L3Harris Technologies (LHX - Free Report) . GD and LHX have an Earnings ESP of +2.39% and +3.02%, respectively. General Dynamics carries a Zacks Rank of 2, while L3Harris Technologies has a Zacks Rank of 3 at present.
Key Factors to Consider for RTX’s Q2 Performance
Rising flight hours, driven by continued growth in both domestic and international air travel, are sustaining strong demand for commercial aircraft aftermarket services. This trend is likely to have supported RTX's commercial aftermarket sales in the second quarter of 2026.
Meanwhile, higher air passenger traffic continues to boost demand for commercial jet engines, which is expected to have supported RTX's commercial original equipment manufacturer (OEM) sales. Against this backdrop, the company's upcoming quarterly results are likely to reflect solid order activity, particularly for its 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 second quarter.
In addition, higher demand for RTX's integrated air and missile defense systems, supported by increased production on Patriot programs amid rising global defense spending, is expected to have boosted revenues at the Raytheon segment. Higher volume on Standard Missile programs is also likely to have contributed to the segment's top-line growth.
RTX’s Price Performance
RTX’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 30.4% in the time frame, outperforming the Zacks aerospace-defense industry’s decline of 1.5%. It has also outpaced the broader Zacks Aerospace sector’s return of 0.9% as well as the S&P 500’s gain of 21.1%.
Image Source: Zacks Investment Research
A similar stellar performance can be seen in the share price return of other industry players like General Dynamics and L3Harris Technologies, which have witnessed a surge of 24.6% and 6.1%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 26.76X, a discount to its industry’s average of 31.78X. 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 General Dynamics is 21.09X, the same for L3Harris Technologies is 22.22X.
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, persistent supply-chain constraints remain a near-term headwind, as they could continue to affect production schedules and delay revenue recognition despite strong underlying demand.
End Note
RTX appears well-positioned ahead of its second-quarter earnings, supported by solid demand across its commercial aerospace and defense businesses, a strong backlog and healthy cash flow generation. Continued strength in commercial aviation, robust defense spending and sustained order momentum should support the company's long-term growth prospects.
Considering its price performance and discounted valuation, investors might consider adding RTX stock to their portfolios right now.