RTX Corporation, listed on the New York Stock Exchange under the ticker RTX, announced its financial outcomes for the fourth quarter of 2025 on Tuesday, delivering results that surpassed analyst projections. The company recorded total sales amounting to $24.238 billion during this period, marking a 12% increase compared to the $21.623 billion posted in the equivalent quarter the previous year.
On the earnings front, RTX reported generally accepted accounting principles (GAAP) diluted earnings per share (EPS) of $1.19, an improvement from $1.10 per share recorded over the same timeframe a year earlier. It is important to note that this GAAP EPS figure incorporated acquisition accounting adjustments totaling $0.31, restructuring charges of $0.02, and other net significant and/or non-recurring items amounting to $0.03.
When adjusting for these special items, RTX's EPS increased by 1% to reach $1.55 per share. Both this adjusted EPS and the reported revenue exceeded Wall Street estimates, which predicted $1.47 in EPS and $22.737 billion in revenue. This performance indicates an operational execution above the anticipated levels.
Looking ahead to fiscal 2026, RTX has provided guidance that points to adjusted sales ranging between $92.0 billion and $93.0 billion, closely aligned with the consensus estimate of $92.461 billion. The company forecasts organic sales growth in the range of 5% to 6%, indicating an expected moderate expansion driven by existing business lines.
In terms of profitability, the adjusted earnings per share are projected to be between $6.60 and $6.80 for 2026, slightly diverging around the analyst consensus of $6.71. Additionally, RTX anticipates generating free cash flow in the range of $8.25 billion to $8.75 billion, reinforcing its capacity for cash generation and financial flexibility.
RTX’s Chairman and Chief Executive Officer, Chris Calio, commented on the results, stating, "RTX delivered strong sales, adjusted EPS and free cash flow in 2025, enabled by our continued focus on operational performance and execution." This statement highlights the company’s emphasis on operational efficiency as a key driver for its recent success.
Following the earnings release, RTX’s shares experienced a marginal increase, rising 0.1% to trade at $201.54 on the day after the announcement. Market analysts responded by updating their outlooks on the company’s stock.
UBS analyst Gavin Parsons maintained a Neutral rating on RTX but raised the price target from $199 to $208. Meanwhile, Ken Herbert from RBC Capital upheld an Outperform rating for RTX and increased his price target from $220 to $230. These adjustments suggest growing confidence in the company’s near-term prospects amid its demonstrated financial resilience.
The recent updates signal that while RTX is expected to continue delivering solid financial results, market participants remain attentive to the dynamics influencing future growth and profitability. The incremental increases in price targets reflect tempered optimism anchored in the company's performance trends, as well as the inherent uncertainties facing large industrial firms in a competitive environment.