Core Viewpoint - RTX stock is experiencing significant growth in early 2026, driven by strong performance and capital returns, with a positive outlook for the defense and aerospace sectors [2] Group 1: Financial Performance - RTX reported net revenue of $24.24 billion for the quarter ending January 27, 2026, reflecting a 12.1% year-over-year increase and exceeding expectations by over 670 basis points [3] - The company achieved an adjusted earnings per share (EPS) that outperformed by 540 basis points, with free cash flow improving to $3.2 billion, indicating strong capital return potential [4] Group 2: Market Position and Backlog - RTX's backlog has surged to over $260 billion, which represents nearly three years of revenue based on 2026 guidance, highlighting the company's strong order visibility [2][6] - The defense sector's strength has remained robust through 2025 and into early 2026, supporting the expectation that RTX could outperform in upcoming quarters [2] Group 3: Guidance and Market Sentiment - While guidance was positive, revenue and earnings forecasts aligned with analyst consensus, providing limited immediate market momentum post-release [5] - RTX remains in an uptrend but may experience consolidation or a correction before reaching new highs, with potential support levels between $170 and $180 [5][6]

Core Insights - TTM Technologies, Inc. and Raytheon have signed a multi-year agreement valued at $200 million to supply radio frequency assemblies, electronic hardware, and printed circuit boards for Raytheon's Lower Tier Air and Missile Defense Sensor (LTAMDS) [1][2] Group 1: Agreement Details - The agreement enhances TTM's support for LTAMDS development and production-readiness, ensuring alignment with program schedules and customer milestones [2] - The multi-year contract allows Raytheon to meet an accelerated delivery schedule while reducing costs [2] Group 2: TTM's Role and Capabilities - TTM designs, manufactures, and tests critical components such as the Beam Forming Network, printed wiring boards, and specialized assemblies for LTAMDS and GhostEye radars [3] - Multi-year commitments enable TTM to invest in capacity and improve lead-time stability, ultimately increasing value for customers and taxpayers [3] Group 3: Strategic Importance - The agreement underscores the importance of U.S.-based electronics manufacturing for integrated air and missile defense, aligning with the Department of War's focus on strengthening supply chains and accelerating delivery of essential capabilities [4]

Core Insights - TTM Technologies, Inc. and Raytheon have signed a multi-year agreement valued at $200 million to provide radio frequency assemblies, electronic hardware, and printed circuit boards for Raytheon's Lower Tier Air and Missile Defense Sensor (LTAMDS) [1][2] Group 1: Agreement Details - The agreement enhances TTM's support for LTAMDS development and production-readiness, ensuring alignment with program schedules and customer milestones [2] - The multi-year contract allows Raytheon to meet an accelerated delivery schedule while reducing costs [2] Group 2: TTM's Role and Capabilities - TTM designs, manufactures, and tests critical components such as the Beam Forming Network (BFN) and specialized assemblies for LTAMDS and GhostEye radars [3] - Multi-year commitments enable TTM to invest in capacity and improve lead-time stability, ultimately increasing value for customers and taxpayers [3] Group 3: Strategic Importance - The agreement reinforces the long-standing partnership between TTM and Raytheon, highlighting the importance of U.S.-based electronics manufacturing for integrated air and missile defense [4] - This partnership aligns with the Department of War's focus on strengthening supply chains and accelerating the delivery of essential capabilities [4]

Core Insights - RTX Corporation reported strong fourth-quarter 2025 results with sales of $24.238 billion, a 12% increase from $21.623 billion in the previous year [1] - GAAP diluted EPS was $1.19, up from $1.10 year-over-year, including various adjustments [1] - Adjusted EPS rose 1% to $1.55, exceeding analyst estimates [2] Financial Performance - Fourth-quarter sales reached $24.238 billion, surpassing analyst expectations of $22.737 billion [2] - The company guided for adjusted sales of $92.0 billion to $93.0 billion for 2026, with organic sales growth projected at 5% to 6% [2] - Expected adjusted EPS for 2026 is between $6.60 and $6.80, compared to an estimate of $6.71 [2] - Free cash flow is anticipated to be between $8.25 billion and $8.75 billion [2] Market Reaction - Following the earnings announcement, RTX shares increased by 0.1% to $201.54 [3] - Analysts adjusted their price targets for RTX, with UBS raising it from $199 to $208 and RBC Capital from $220 to $230 [4]

Company Overview - RTX Corporation (RTX) has a market cap of $269.9 billion and operates in the aerospace and defense sector, serving commercial, military, and government customers through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon [1] Stock Performance - RTX shares have significantly outperformed the broader market over the past 52 weeks, with a 56.5% increase compared to a 16.1% rise in the S&P 500 Index [2] - Year-to-date, RTX stock is up 9.5%, while the S&P 500 has only risen by 1.9% [2] - The stock has also outpaced the State Street Industrial Select Sector SPDR ETF (XLI), which returned 18.8% over the same period [3] Financial Performance - On January 27, RTX reported Q4 2025 adjusted EPS of $1.55 and revenue of $24.24 billion, both exceeding forecasts [4] - The company generated free cash flow of $3.2 billion for Q4 and $7.9 billion for the full year 2025, marking a $3.4 billion increase year-over-year [4] - For 2026, RTX projects adjusted EPS guidance of $6.60 - $6.80 and free cash flow of $8.25 billion - $8.75 billion [4] Analyst Expectations - Analysts expect RTX's adjusted EPS to grow 6% year-over-year to $6.67 for the fiscal year ending in December 2026 [5] - RTX has a strong earnings surprise history, having topped consensus estimates in the last four quarters [5] - Among 22 analysts covering the stock, the consensus rating is a "Moderate Buy," with 13 "Strong Buy" ratings, one "Moderate Buy," and eight "Holds" [5] Price Target - UBS analyst Gavin Parsons raised RTX's price target to $208 while maintaining a "Neutral" rating [6] - The stock is currently trading above the mean price target of $201.86, with a Street-high price target of $230 suggesting a 12.4% potential upside [7]

Group 1 - RTX Corporation has been awarded a $380.8 million contract for work on Tomahawk missiles, contributing to its growth in the defense and aerospace sector due to rising geopolitical spending [1] - The contract includes recertification and modernization of Tomahawk missiles, depot operations, and spares, with significant work to be performed in Tucson, Arizona; Boulder, Colorado; and Pontiac, Michigan [2] - RTX has also secured a $1.7 billion contract to supply Spain with four Patriot Air and missile defense systems, which includes radars, launchers, and command-and-control stations [3] Group 2 - NASA's Pandora mission, launched aboard a Saturn‑200 minisatellite built by Blue Canyon Technologies (a subsidiary of RTX), highlights RTX's expanding role in space innovation [4] - The company has delivered its largest telescope payload to date and has 87 spacecraft in orbit, showcasing its strength in the aerospace and defense industry [4] - RTX focuses on advanced systems, engines, and solutions for defense, commercial, and government customers, emphasizing innovations in missiles, aircraft engines, sensors, cybersecurity, and space technology [5]

Financial Performance - Elevance Health reported an adjusted EPS of $3.33 for Q4 2025, exceeding estimates of $3.10, but operating revenue was $49.31 billion, slightly below the estimated $49.81 billion, and medical membership was 45.23 million, short of the estimated 45.36 million [2] - Danaher Corporation achieved total sales of $6.84 billion in Q4 2025, surpassing the estimated $6.79 billion, with an adjusted EPS of $2.23, outperforming the $2.16 estimate [3] - ASML noted a normalization in sales to China, with expectations for China's sales share to decrease to approximately 20% in 2026 from 33% in 2025 due to export restrictions, despite recording record orders in Q4 2025 [5] Guidance and Outlook - Elevance Health's guidance for 2026 adjusted EPS is projected to be at least $25.50, which is below the analyst consensus of $26.99 [2] - Danaher's 2026 adjusted EPS guidance is set between $8.35 and $8.50, aligning with the analyst estimate of $8.46 [3] - ASML raised its 2026 revenue guidance driven by strong global demand for AI-related chips [5] Analyst Ratings and Market Sentiment - Morgan Stanley upgraded RTX to a top pick and raised its price target from $215 to $235, indicating increased analyst optimism regarding the company's future performance [4]

Group 1 - UBS has raised the target price for Raytheon Technologies (RTX.US) from $199 to $208 [1]

Market Overview - U.S. stock markets are experiencing a pivotal moment with anticipation surrounding the Federal Reserve's interest rate decision and earnings reports from major technology companies [1] - Premarket trading shows a mixed but generally upward trend, with S&P 500 Futures up 0.3% to 7,028.75 points and Nasdaq 100 Futures up 0.6% to 26,228.75 points, while Dow Jones Futures remain flat at 49,159.0 points [2] Semiconductor Industry - U.S. chip stocks are seeing notable gains, with Nvidia increasing by 1.7%, AMD rising by 1.4%, and Intel climbing 4.6%, reflecting strong investor confidence in AI and advanced computing [3] Major Market Indexes - The S&P 500 Index closed at a record high of 6,978.60 points, a 0.41% increase, driven by strength in chipmakers and AI infrastructure stocks, particularly Micron Technology, which announced a $24 billion investment in Singapore [4] - The Dow Jones Industrial Average closed at 49,003.41 points, down 0.83%, primarily due to weakness in the healthcare sector, with UnitedHealth Group forecasting a revenue decline for 2026 [5] - The Nasdaq Composite Index closed up 0.91% at 23,817.10 points, reaching a 2.75-month high, with nearly 30% year-over-year growth attributed to AI advancements [6] Upcoming Market Events - The Federal Reserve is expected to hold its key interest rate steady within the 3.5%-3.75% target range, following three consecutive rate cuts in late 2025, with a focus on the labor market and consumer spending [7] - Major earnings reports are anticipated from tech giants Meta Platforms and Microsoft, which will provide insights into the technology sector's health and AI investments [13] Company News - Infosys announced a strategic AI-focused collaboration, indicating ongoing investment in AI solutions [14] - Boeing's CEO outlined a turnaround plan after six consecutive annual losses, addressing operational challenges [14] - HSBC is scaling back its M&A and equities businesses in Europe, the UK, and the Americas to focus on Asian operations [14] - JetBlue Airways reported a significant Q4 loss and provided weaker-than-expected revenue guidance, raising concerns about profitability [14] - RTX Corporation delivered higher-than-expected Q4 results, showcasing strong growth across its business segments [14]

Core Insights - RTX reported strong financial performance in Q4 and full-year 2025, with adjusted sales of $24.2 billion in Q4 and $88.6 billion for the full year, reflecting a year-over-year increase of 12% and 11% respectively on an organic basis [1][2] - The company highlighted durable demand in commercial aerospace and defense sectors, with a record backlog of $268 billion, up 23% year-over-year, indicating strong future growth potential [3][6] Q4 Performance - Adjusted segment operating profit for Q4 rose 9% to $2.9 billion, while adjusted EPS was $1.55, up 1% despite higher corporate expenses and tax rates [1] - Free cash flow for Q4 was reported at $3.2 billion, contributing to a total of $7.9 billion for the full year, which was an increase of $3.4 billion from 2024 [5][2] Full-Year 2025 Results - Full-year adjusted EPS was $6.29, up 10% year-over-year, with significant contributions from commercial OE (10% growth), commercial aftermarket (18% growth), and defense (8% growth) [2] - The company achieved a book-to-bill ratio of 1.56 for the year, with commercial orders accounting for approximately $161 billion and defense awards totaling $107 billion [6] 2026 Guidance - RTX provided guidance for 2026, projecting adjusted sales between $92 billion and $93 billion, representing 5% to 6% organic growth [10] - Adjusted EPS is expected to be in the range of $6.60 to $6.80, with operational performance anticipated to contribute positively despite headwinds from lower pension income and a higher share count [11] Segment Performance - Collins Aerospace reported Q4 sales of $7.7 billion, up 3% adjusted and 8% organically, driven by commercial OE and aftermarket strength [14] - Pratt & Whitney's Q4 sales increased 25% to $9.5 billion, with significant growth across all channels, including a 30% rise in military engine sales [14] - Raytheon experienced a 7% increase in Q4 sales to $7.7 billion, supported by higher volume in defense systems [14] Investment and Capacity Expansion - RTX plans to invest $10.5 billion in combined CapEx and R&D for 2026, including $3.1 billion in CapEx, to support capacity and technology advancements [4][14] - The company noted progress in its GTF fleet management plan, with a significant reduction in aircraft-on-ground levels and increased MRO output [13]