RTX falls 2.0% after Raytheon unit wins $729 million counter-drone contracts

What happened

RTX fell 2.0% on October 13, 2026, after Raytheon, a business unit of RTX, received contracts totaling $729 million and said it was investing to scale production, according to PRNewsWire. The stock closed at $183.02 and trading volume ran at 1.1 times its 20-day average.

How big was the move

The stock’s one-day change was 1.3 times a typical daily move for this stock, while the S&P 500 was unchanged on the day. The Industrials sector median fell 0.1%, leaving RTX’s change 1.9 percentage points worse than the sector. Over five sessions the stock fell 0.1% as the S&P 500 fell 0.2%.

The technical picture

RTX closed 2.6% below its 20-day moving average and 9.4% below its 50-day moving average. The shares were 6.1% below their 200-day moving average and 19.3% below the 52-week high. The 50-day average is above the 200-day average, a sign of an established uptrend, and the Relative Strength Index (14 days) stood at 34, inside a neutral range between 30 and 70.

Over the near term the shares fell 6.3% in one month and 6.6% in three months. Over the past year the stock rose 16.1%, leaving it 3.1 percentage points behind the S&P 500. Volatility was 24% annualized over 60 days, a reading higher than 52% of its own readings over five years, suggesting recent price swings are modestly elevated versus history.

Fundamentals and valuation

For the four quarters through June 30, 2026, RTX reported revenue of $93.50 billion, which grew 11.8% from a year earlier. Diluted earnings per share were $5.68, up 24.8% from a year earlier. Gross margin was 20.3% versus 20.0% a year earlier and operating margin was 11.2% versus 10.0% a year earlier.

Free-cash-flow margin stood at 12.9% and return on invested capital was 7.3%. The balance sheet showed net debt of 1.9 times EBITDA and the company’s share count increased by 0.8% over one year. Valuation metrics included 32.2 times trailing earnings and 25.2 times expected forward earnings, with a free-cash-flow yield of 4.8%.

The price to trailing earnings was lower than 76% of its own readings over the past five years; the five-year median was 35.9 times earnings. At a market value of $250.64 billion, RTX combines solid recent growth in revenue and earnings with a valuation that is below its five-year median. That contrast may help explain differing analyst views and the stock’s sensitivity to company-specific news.

Earnings and analyst expectations

RTX is scheduled to report next on October 20, 2026. The last report, on July 23, 2026, showed earnings per share of $1.89 against $1.66 expected, a result 13.9% above estimates. The company has beaten estimates for 14 consecutive quarters, with an average surprise over the last four reports of 14.4% above estimates. The typical two-day reaction after recent reports was that the stock rose 0.7%.

Twenty-six analysts cover the stock, with 65% rating the stock Buy and a consensus rating of Buy. The consensus price target was $236.27, which was 29.1% above the closing price on October 13, 2026.

PromtFinance scores rank RTX strong on Growth at 84 and strong on Revisions at 85, while Value and Quality sit in the Neutral range at 63 and 58, respectively. Stability scored 93, placing the company in an exceptional position on that measure within the sector.

What to watch

• October 20, 2026: RTX next reports earnings.
• PRNewsWire: Raytheon received contracts totaling $729 million to supply components of the LIDS counter-drone system and said it is investing to scale production.
• Four quarters through June 30, 2026: revenue $93.50 billion and diluted earnings per share $5.68.
• Valuation: 32.2 times trailing earnings and 25.2 times expected forward earnings.
• Market sensitivity: trading volume 1.1 times its 20-day average and the stock’s move was 1.3 times a typical daily move for this stock.