📊 RTX Key Takeaways
Is RTX Corp (RTX) a Good Investment?
RTX demonstrates weakened capital efficiency with critically low ROE (3.1%) and ROA (1.2%), indicating poor deployment of its substantial asset base. Dangerously low interest coverage of 1.4x combined with weak liquidity ratios (current 1.02x, quick 0.78x) creates significant financial strain, while declining net income (-4.8% YoY) despite 9.7% revenue growth signals deteriorating operational leverage.
RTX shows solid fundamental quality with strong 9.7% revenue growth, healthy 10.5% operating margin, and robust free cash flow generation of $7.94B. Financial health appears sound with manageable leverage and adequate interest coverage, though weaker net income growth and tight liquidity suggest the business is improving but not without execution risk. Overall, the company looks fundamentally strong, supported by scale, cash generation, and operating resilience.
Why Buy RTX Corp Stock? RTX Key Strengths
- Solid revenue growth of 9.7% year-over-year demonstrates market demand
- Positive free cash flow of 1.3B supports dividend and debt service
- Debt-to-equity ratio of 0.56x shows moderate leverage relative to equity base
- Strong top-line growth with revenue up 9.7% year over year
- Robust cash generation with $10.57B operating cash flow and $7.94B free cash flow
- Manageable leverage profile with 0.58x debt-to-equity and 5.0x interest coverage
RTX Stock Risks: RTX Corp Investment Risks
- Interest coverage ratio of 1.4x is critically low with minimal debt service cushion
- Return on equity of 3.1% and ROA of 1.2% reflect severe capital inefficiency
- Quick ratio of 0.78x indicates inadequate liquid assets to cover short-term obligations
- Declining net income despite revenue growth signals deteriorating operational performance
- Extremely low gross margin of 9.8% suggests limited pricing power or cost control issues
- Cash position of 6.8B inadequate relative to 37.3B long-term debt burden
- Net income declined 4.8% year over year despite revenue growth, indicating some earnings pressure
- Very low reported gross margin of 2.4% suggests limited cushion if costs rise or mix weakens
- Liquidity is somewhat tight with a 1.03x current ratio and 0.80x quick ratio
Key Metrics to Watch
- Interest coverage ratio trending; must exceed 2.5x for financial health
- ROE and ROA improvement; current levels unsustainable for capital-intensive business
- Free cash flow conversion rate and cash balance relative to debt obligations
- Gross margin expansion; current 9.8% leaves no margin for operational stress
- Operating margin and net income conversion on future revenue growth
- Free cash flow generation and liquidity ratios
RTX Corp (RTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
RTX Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
RTX Profit Margin, ROE & Profitability Analysis
RTX vs Automotive Sector: How RTX Corp Compares
How RTX Corp compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RTX Corp Stock Overvalued? RTX Valuation Analysis 2026
Based on fundamental analysis, RTX Corp has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RTX Corp Balance Sheet: RTX Debt, Cash & Liquidity
RTX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: RTX Corp's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.23 reflects profitable operations.
RTX Revenue Growth, EPS Growth & YoY Performance
RTX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $20.3B | $1.5B | $1.14 |
| Q3 2025 | $20.1B | $1.5B | $1.09 |
| Q2 2025 | $19.7B | $111.0M | $0.08 |
| Q1 2025 | $19.3B | $1.5B | $1.14 |
| Q3 2024 | $13.5B | -$984.0M | $-0.68 |
| Q2 2024 | $18.3B | $111.0M | $0.08 |
| Q1 2024 | $17.2B | $1.4B | $0.97 |
| Q3 2023 | $13.5B | -$984.0M | $-0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RTX Corp Dividends, Buybacks & Capital Allocation
RTX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for RTX Corp (CIK: 0000101829)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RTX
What is the AI rating for RTX?
RTX Corp (RTX) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RTX's key strengths?
Claude: Solid revenue growth of 9.7% year-over-year demonstrates market demand. Positive free cash flow of 1.3B supports dividend and debt service. ChatGPT: Strong top-line growth with revenue up 9.7% year over year. Robust cash generation with $10.57B operating cash flow and $7.94B free cash flow.
What are the risks of investing in RTX?
Claude: Interest coverage ratio of 1.4x is critically low with minimal debt service cushion. Return on equity of 3.1% and ROA of 1.2% reflect severe capital inefficiency. ChatGPT: Net income declined 4.8% year over year despite revenue growth, indicating some earnings pressure. Very low reported gross margin of 2.4% suggests limited cushion if costs rise or mix weakens.
What is RTX's revenue and growth?
RTX Corp reported revenue of $22.1B.
Does RTX pay dividends?
RTX Corp pays dividends, with $915.0M distributed to shareholders in the trailing twelve months.
Where can I find RTX SEC filings?
Official SEC filings for RTX Corp (CIK: 0000101829) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RTX's EPS?
RTX Corp has a diluted EPS of $1.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RTX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, RTX Corp has a HOLD rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RTX stock overvalued or undervalued?
Valuation metrics for RTX: ROE of 3.1% (sector avg: 12%), net margin of 9.3% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy RTX stock in 2026?
Our dual AI analysis gives RTX Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RTX's free cash flow?
RTX Corp's operating cash flow is $1.9B, with capital expenditures of $546.0M. FCF margin is 5.9%.
How does RTX compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 9.3% (avg: 6%), ROE 3.1% (avg: 12%), current ratio 1.02 (avg: 1.2).