News · RTX Corporation (RTX) · Industrials

RTX falls 0.9% after quarterly results as company raises full-year outlook

Session of October 21, 2026 · Published October 22, 2026 · 3 min read

What happened

RTX fell 0.9% on October 21, 2026, because quarterly results showed stronger sales and profit and management raised its outlook. The company reported adjusted sales of $25 billion and adjusted EPS of $2.26, and management cited a record $340 billion backlog while raising the full-year 2026 outlook, according to Zacks Investment Research and GuruFocus. Trading volume was 1.5 times its 20-day average, and the S&P 500 rose 0.6% on the day.

Closing price over the last 30 trading sessions. On October 21, 2026, RTX closed at $191.60, down 0.9% on the day and 3.3% lower than 30 sessions earlier.

How big was the move

The stock closed at $191.60, a decline that was 0.7 times a typical daily move for this stock. Over the last five sessions the stock rose 2.8%, while the S&P 500 over the same period rose 0.5%. The Industrials sector median on the day rose 0.9%, leaving the stock's performance 1.8 percentage points worse than the sector median. The stock typically moves less than the market, with a beta of 0.73.

Each bar is one day's price change; the outlined bar is October 21, 2026. A typical daily move over the past year was 1.6%, so the latest move equals 0.5 times that. Moves outside the dashed lines (about 3.3%) are unusual.

The technical picture

On a short-term basis the stock traded 2.5% above its 20-day moving average but remained 3.4% below its 50-day moving average and 1.8% below its 200-day moving average. The 50-day average was above the 200-day average, a sign of an established uptrend. The Relative Strength Index, over 14 days, read 52, in a neutral range, and the stock was 15.6% below its 52-week high. Change over three months fell 8.4%, while change over one year rose 19.2%, which is 4.0 percentage points ahead of the S&P 500. Volatility was 20% annualized over 60 days, lower than 73% of its own readings over five years.

Closing price over the past year. RTX ends the period 15.0% below its 52-week high, below its 50-day average ($198.26) and below its 200-day average ($195.13).

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $95.99 billion, which grew 11.6% from a year earlier. Diluted earnings per share were $6.16, which rose 26.5% from a year earlier, and gross margin was 21.1% versus 20.1% a year earlier. Operating margin improved to 11.8% from 10.3% a year earlier, and free-cash-flow margin was 9.5%. Balance-sheet metrics showed net debt of 1.8 times EBITDA, and share count over one year increased by 0.7%.

Quarterly revenue by period end. The latest quarter brought $25.0B, 11.1% more than the same quarter a year earlier.

The stock traded at 31.1 times trailing earnings and 26.4 times expected earnings, with a free-cash-flow yield of 3.5%. Its price to trailing earnings is lower than 76% of its own readings over the past five years, with a five-year median of 35.5 times earnings. PromtFinance scores ranked Growth at 76 (Positive) and Revisions at 83 (Strong), while Value was 57 (Neutral) and Stability 95 (Exceptional).

Earnings and analyst expectations

RTX reported last on October 20, 2026, with EPS of $2.26 against $1.78 expected, 27.0% above estimates, marking the fifteenth consecutive quarter beating estimates. The average surprise over the last four reports was 16.0% above estimates, and the stock's typical two-day reaction after recent reports was that it rose 0.8%. The next report is scheduled for January 26, 2027.

Diluted earnings per share by quarter. The latest quarter shows $1.89, against $1.41 in the same quarter a year earlier.

Analysts provided a consensus price target of $231.36, which is 20.8% above the closing price, based on 26 analysts with 65% rating the stock Buy or Strong Buy and a consensus rating of Buy. Management said aerospace demand remained strong, and defense production was expanding, citing the record $340 billion backlog, according to Zacks Investment Research and GuruFocus.

Also during the period, business units within RTX announced product and service updates. Collins Aerospace introduced ARINCDirect OpenAPI to let operators integrate ARINCDirect flight planning, trip and performance data into existing digital systems, and announced radio-altimeter upgrades to help operators meet new FAA operational standards, both reported by PRNewsWire. Pratt & Whitney Canada unveiled the certified PT9 centerline turboprop engine, which it said delivers 33% more power at altitude and cuts fuel consumption by 20% versus previous-generation engines, PRNewsWire reported.

Collins Aerospace also launched the Tower MicroELITE surveillance solution, a scalable digital display system designed to enhance air traffic controller situational awareness, with San Bernardino International Airport serving as the first deployment.

What to watch

Next report: January 26, 2027
Management commentary on the raised full-year 2026 outlook and backlog execution
Consensus price target of $231.36 and the split of analyst ratings from 26 analysts
Free-cash-flow margin of 9.5% and net debt of 1.8 times EBITDA
Change over three months: fell 8.4% and one year versus the S&P 500: 4.0 percentage points ahead of the S&P 500

Full RTX analysis: scores, chart and financials →