How to Trade RTX After Q4 2025 Earnings Performance
RTX Corporation (NYSE: RTX), formerly known as Raytheon Technologies, is one of the largest aerospace and defence companies in the world. Its history stretches back nearly a century, built from legacy businesses including Raytheon and United Technologies. In 2020, these businesses were merged to form a single company.
Today, RTX operates through three main segments: Raytheon (missile and air defence systems), Pratt & Whitney (aircraft engines), and Collins Aerospace (aviation systems and components). This structure gives the company exposure to both defence-related activities and the broader commercial aviation market.
RTX recently reported its fourth-quarter 2025 results. Here’s a closer look at its performance and what analysts are forecasting for the stock.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
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RTX’s Q4 2025 Earnings Performance Summary
Key Takeaways
- RTX reported Q4 revenue of $24.2 billion, up 12% year on year, driven by growth across all three segments. For the full year, revenue rose 10% to $88.6 billion, while adjusted EPS increased 10% to $6.29.
- Free cash flow was a highlight. RTX generated $7.9 billion in free cash flow in full-year 2025, up $3.4 billion YoY. Of that total, $3.2 billion was generated in the fourth quarter alone.
- Segment-wise performance was mixed but positive overall.
- Collins Aerospace: Revenue increased 3% YoY, but adjusted operating profit rose only 1%, as divestitures and tariffs offset volume gains.
- Pratt & Whitney: Revenue surged 25% YoY, supported by strong commercial and military engine demand, while adjusted operating profit increased 8%, making it the strongest-performing segment.
- Raytheon: Revenue rose 7% YoY, and adjusted operating profit increased 22%, driven by higher volume on land and air defence systems and favorable program mix.
- RTX ended the fourth quarter with a $268 billion backlog, including $161 billion of commercial and $107 billion of defence.
- Looking ahead, the company expects 5-6% organic sales growth in full year 2026, alongside adjusted EPS of $6.60-$6.80 and free cash flow of $8.25-$8.75 billion.
RTX’s 12-Month Analyst Stock Price Forecast
According to 12 Wall Street analysts, polled by TipRanks, offering a 12-month stock price forecast for RTX over the past 3 months:
- Buy Ratings: 8
- Hold Ratings: 4
- Sell Ratings: 0
- Average Price Target: $219.58
- High Price Target: $238.00
- Low Price Target: $170.00
Trading Strategy Example: RTX
The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions. An example trading idea for the RTX share price could be as follows:
Remember, markets are volatile, and RTX’s share price can fluctuate and may even trend lower. Rising tensions between the United States and Iran have drawn attention to defence stocks, though investor focus might change as geopolitical developments evolve.
Furthermore, RTX is not solely a defence company. Through Pratt & Whitney and Collins Aerospace, it has meaningful exposure to commercial aviation. If geopolitical conflict leads to higher oil prices, further airspace disruptions, or weaker travel demand, airlines could face margin pressure and may slow aircraft purchases or maintenance activity, which could weigh on RTX’s commercial aerospace business.
How to Buy RTX Stock in 4 Steps
- Open an account with Admirals and complete the onboarding process to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Do You See the RTX Stock Price Moving Differently?
If you believe there is a higher chance that the share price of RTX will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.
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