Research
Research Alert: Rtx Corporation: Q1 Beat And Raise, All Three Segments Post Strong Growth
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:RTX Corporation reported Q1 2026 sales of $22.1B (+9% Y/Y, 10% organic), beating consensus by $604M, with adjusted EPS of $1.78 (+21% Y/Y) exceeding expectations by $0.26. All segments contributed to growth, led by Pratt & Whitney (+11%) and Raytheon (+10%), while free cash flow of $1.3B improved 65% Y/Y. The record $271B backlog and eighth consecutive quarter of margin expansion support the investment thesis, with defense momentum accelerating from international demand. Management raised full-year guidance to $92.5B-$93.5B sales and $6.70-$6.90 EPS, incorporating Q1 outperformance. We believe operational momentum is building with positive trends in volume growth and cash generation, though we note Pratt margins remain constrained by OE mix headwinds until aftermarket improves. In our view, while fundamentals are improving, valuation appears to reflect significant optimism around GTF normalization, leaving limited margin for error if execution challenges emerge.
$RTX