• In the past week, RTX Corporation reported second-quarter 2026 results showing revenue of US$24.71 billion and net income of US$2.14 billion, with both basic and diluted earnings per share from continuing operations rising compared with a year earlier.
• The company also lifted its 2026 sales and profit outlook and highlighted an expanded backlog supported by strong commercial aftermarket demand and defense orders, reinforcing revenue visibility despite ongoing supply chain and tariff-related risks.
• Next, we’ll examine how RTX’s stronger outlook and enlarged backlog could influence its existing investment narrative around backlog execution.

Find 49 companies with promising cash flow potential yet trading below their fair value.

RTX Investment Narrative Recap

To own RTX, you need to believe in its ability to turn a large, long-duration defense and commercial aerospace backlog into consistent cash flows while controlling costs. The latest quarter’s stronger earnings and raised 2026 outlook support that execution story in the near term, but recurring risks around tariffs and engine-related costs remain central to the short term thesis.

Among recent announcements, the U.S. Navy’s US$1.1 billion AIM-9X Block II missile contract stands out alongside Q2 results, as it directly adds to RTX’s already expanded backlog. This combination of fresh orders and improved guidance ties closely to the main catalyst investors are watching: whether RTX can efficiently convert its record backlog into profitable revenue without margin slippage from supply chain or tariff pressures.

Yet behind the stronger outlook, investors still need to watch how rising and unpredictable tariff costs could...

RTX’s narrative projects $111.7 billion in revenue and $10.8 billion in earnings by 2029.

Uncover how RTX's forecasts yield a $226.82 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates cluster tightly between US$226.82 and US$231.74, underscoring how close current pricing is to their models. You should weigh these views against RTX’s bigger question of whether supply chain and tariff risks will eat into the earnings power implied by its expanding backlog and higher guidance.

Explore 3 other fair value estimates on RTX - why the stock might be worth just $226.82!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your RTX research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.