RTX Corporation (RTX)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

RTX is a large aerospace and defense enterprise with Collins, Pratt & Whitney, and Raytheon, selling systems and aftermarket services across commercial and government markets. That mix can create switching costs and long program lives, but I want evidence in the numbers. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $25.0B, net income $2.6B, and diluted EPS $1.89, up from $22.5B, $1.9B, and $1.41 in fiscal Q3 2025, the quarter ended 2025-09-30. Full-year fiscal 2025, ended 2025-12-31, revenue was $88.6B with net income $6.7B and diluted EPS $4.96, versus $80.7B, $4.8B, and $3.55 in fiscal 2024 and $68.9B, $3.2B, and $2.23 in fiscal 2023. The trajectory is real. Financial health is decent: trailing free cash flow is $9.1B, Piotroski is 8/9, D/E is 0.57, and ROE is 12.27%, all FairStock calculations from the data. But ROCE of 4.21% is thin, and Altman Z at 2.17 warrants watching. Valuation is the rub. At the $197.48 close on 2026-10-26, FairStock shows P/E 34.77, P/B 4.01, FCF yield 3.4%, EV/EBITDA 17.06, and PEG 0.97. The Graham Number is $81.03, leaving a negative 135.73% margin of safety by that old yardstick. FairStock calls it a STALWART, citing 14.9% annual profit growth over four years and 8.3% revenue growth. I see an improving business, but the price already discounts much of that improvement; this is not a Graham bargain.

In plain English: RTX makes aerospace and defense systems and services for airlines, militaries, and governments. Sales and profits are rising, cash flow is solid, and the balance sheet looks generally healthy. But at $197.48 on 2026-10-26, the stock looks expensive compared with what the company earns and owns.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer