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Should You Buy, Hold or Sell RTX Stock Ahead of Q3 Earnings?
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Key Takeaways
RTX's Q3 revenues are expected to rise 6.8% to $24.01 billion, while EPS is projected to grow 4.7% to $1.76.
Strong aftermarket demand, aircraft production and defense orders are expected to boost RTX's Q3 growth.
RTX shares surged 18.4% in a year, while its forward P/E of 24.44X remains below the industry's 27.36X.
RTX Corporation (RTX - Free Report) is slated to report third-quarter 2026 results on Oct. 20, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $24.01 billion, indicating an improvement of 6.8% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.78 per share, implying growth of 4.7% 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 14.21%.
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 Lockheed Martin (LMT - Free Report) . GD and LMT have an Earnings ESP of +2.36% and +0.27%, respectively. Both General Dynamics and Lockheed Martin carry a Zacks Rank of 3 at present.
Key Factors to Consider for RTX’s Q3 Performance
Rising flight hours, driven by continued growth in 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 third quarter of 2026.
Meanwhile, continued aircraft production ramp-ups across narrowbody and widebody platforms are expected to have supported demand for commercial original equipment manufacturer (OEM) products. Higher GTF engine installations and strong maintenance, repair and overhaul (MRO) activity are also likely to have supported Pratt & Whitney’s performance. Against this backdrop, continued demand for GTF engines and aftermarket services is expected to have contributed to revenue growth across Pratt & Whitney and Collins Aerospace.
For the third quarter, Pratt & Whitney is expected to have faced particularly challenging comparisons because the prior-year quarter benefited from the timing of the F135 engine production contract award and related sales. A shift in large commercial engine sales toward installed engines and away from spare parts is also likely to have weighed on revenues, even as aftermarket maintenance demand remains strong.
In addition, higher demand for RTX's integrated air and missile defense systems, supported by rising global defense spending and strong international orders, is expected to have boosted revenues at the Raytheon segment. Continued production growth across Patriot, Standard Missile and AMRAAM 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 19.1% in the time frame, outperforming the Zacks aerospace-defense industry’s decline of 17.9%. It has also outpaced the broader Zacks Aerospace sector’s decline of 16.1% as well as the S&P 500’s gain of 17.4%.
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 Lockheed Martin, which have witnessed a surge of 1.8% and 7.6%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 24.44X, a discount to its industry’s average of 27.36X. 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 18.45X, the same for Lockheed Martin is 16.40X.
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 looks well-positioned ahead of its third-quarter earnings, backed by healthy demand across its commercial aerospace and defense businesses, a record backlog and strong cash flow generation. Resilient air travel, increased defense spending and continued order growth are expected to support its long-term business prospects.
Given its recent share price performance and attractive valuation, investors may consider adding RTX stock to their portfolios at current levels.
View the Zacks #1 Rank List
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Should You Buy, Hold or Sell RTX Stock Ahead of Q3 Earnings?
Key Takeaways
RTX Corporation (RTX - Free Report) is slated to report third-quarter 2026 results on Oct. 20, 2026, before market open.
The Zacks Consensus Estimate for revenues is pegged at $24.01 billion, indicating an improvement of 6.8% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at $1.78 per share, implying growth of 4.7% 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 14.21%.
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 +0.70% 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 Lockheed Martin (LMT - Free Report) . GD and LMT have an Earnings ESP of +2.36% and +0.27%, respectively. Both General Dynamics and Lockheed Martin carry a Zacks Rank of 3 at present.
Key Factors to Consider for RTX’s Q3 Performance
Rising flight hours, driven by continued growth in 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 third quarter of 2026.
Meanwhile, continued aircraft production ramp-ups across narrowbody and widebody platforms are expected to have supported demand for commercial original equipment manufacturer (OEM) products. Higher GTF engine installations and strong maintenance, repair and overhaul (MRO) activity are also likely to have supported Pratt & Whitney’s performance. Against this backdrop, continued demand for GTF engines and aftermarket services is expected to have contributed to revenue growth across Pratt & Whitney and Collins Aerospace.
For the third quarter, Pratt & Whitney is expected to have faced particularly challenging comparisons because the prior-year quarter benefited from the timing of the F135 engine production contract award and related sales. A shift in large commercial engine sales toward installed engines and away from spare parts is also likely to have weighed on revenues, even as aftermarket maintenance demand remains strong.
In addition, higher demand for RTX's integrated air and missile defense systems, supported by rising global defense spending and strong international orders, is expected to have boosted revenues at the Raytheon segment. Continued production growth across Patriot, Standard Missile and AMRAAM 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 19.1% in the time frame, outperforming the Zacks aerospace-defense industry’s decline of 17.9%. It has also outpaced the broader Zacks Aerospace sector’s decline of 16.1% as well as the S&P 500’s gain of 17.4%.
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 Lockheed Martin, which have witnessed a surge of 1.8% and 7.6%, respectively, in the past year.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 24.44X, a discount to its industry’s average of 27.36X. 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 18.45X, the same for Lockheed Martin is 16.40X.
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 looks well-positioned ahead of its third-quarter earnings, backed by healthy demand across its commercial aerospace and defense businesses, a record backlog and strong cash flow generation. Resilient air travel, increased defense spending and continued order growth are expected to support its long-term business prospects.
Given its recent share price performance and attractive valuation, investors may consider adding RTX stock to their portfolios at current levels.