RTX Is a Defensive Stock With Room to Grow

Core Insights - RTX is recognized as a defensive stock due to the recession-resistant nature of its defense business, providing stability to earnings and dividends [1] - The stock has surged by 38% over the past year, driven by strong growth in the commercial aerospace segment [1] - Future growth may be led by RTX's core defense business, contrasting with the previous quarter where commercial business was the primary growth driver [2] Financial Performance - In Q2 2025, RTX reported revenue of $21.6 billion, a 9% increase from $19.7 billion in Q2 2024 [6] - Adjusted net income for Q2 2025 was $2.1 billion, up 12% from $1.9 billion in Q2 2024 [6] - Adjusted earnings per share rose to $1.56, an 11% increase from $1.41 in the same quarter last year [6] Market Performance - RTX has outperformed major indices like the S&P 500 and larger tech stocks, with a year-to-date stock price increase of almost 45% [4][8] - The stock's rally was influenced by rising geopolitical tensions and a strong quarterly report, with sales and earnings growth accelerating [8] - The company's contract backlog is growing even faster, indicating potential for continued growth [8]