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Investing.com - RTX Corp. (NYSE:RTX) received a Hold rating reiteration from Jefferies, maintaining its $160.00 price target despite the company’s second-quarter earnings exceeding expectations. According to InvestingPro data, RTX is trading near its 52-week high of $153.39, with the stock delivering an impressive 49% return over the past year.
RTX reported adjusted earnings per share of $1.56 for Q2 2025, surpassing both the estimate of $1.48 and consensus of $1.44. The company’s second-quarter revenues grew 9% organically, coming in 5% above expectations, with adjusted segment profit exceeding forecasts by $0.07, primarily driven by the Raytheon (NYSE:RTN) division.
For fiscal year 2025, RTX raised its revenue guidance by 2% to a range of $84.75-85.50 billion, compared to estimates of $84.2 billion and consensus of $84.3 billion. The company now projects organic growth of 6-7%, up from its previous forecast of 4-6%.
Despite the revenue increase, RTX lowered its adjusted earnings per share guidance by 3% to $5.80-5.95 from the previous range of $6.00-6.15. This reduction comes as commercial segment profits declined by approximately $360 million, only partially offset by a $75 million increase from the Raytheon division.
The company maintained its free cash flow guidance at $7.0-7.5 billion, in line with estimates of $7.08 billion and consensus of $6.93 billion.
In other recent news, RTX Corp. has been awarded a $74 million contract to produce RAM Guided Missile Launching Systems for the U.S. Navy. This contract represents the largest single order of U.S. RAM launchers in over two decades, including production, refurbishment, and hardware upgrades. Additionally, Raytheon, an RTX business, secured a $77 million contract from the U.S. Department of Defense for Miniaturized Airborne Global Positioning System Receiver production and sustainment. These contracts underscore the company’s ongoing involvement in defense systems and technology.
On the financial front, MTU has increased its 2025 revenue guidance to mid-teens growth, with a slight improvement in EBIT margins. Jefferies has maintained its Hold rating on RTX with a price target of $160. Meanwhile, Bernstein SocGen Group has raised its price target on RTX to $154 from $136, noting demand growth in the missile and missile defense sectors. This comes despite slower performance in space and airborne sensors. These developments reflect RTX’s strategic positioning and market dynamics.
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