Is RTX Corporation a Strong Buy in 2026? Analyzing 2025 Analyst Price Targets, Earnings Momentum, and Strategic Business Drivers

As the calendar flips to 2026, investors are increasingly scrutinizing RTX Corporation (NYSE: RTX) for its potential as a long-term growth opportunity. With a robust 2025 performance already under its belt, the aerospace and defense giant has attracted significant analyst attention, with price targets and strategic initiatives painting a compelling picture for the future. This article evaluates whether RTX merits a "Strong Buy" designation in 2026 by analyzing 2025 analyst price targets, earnings momentum, and strategic business drivers.

Analyst Price Targets: A Consensus of Optimism

As of November 2025, 23 analysts cover RTX, assigning it a "Moderate Buy" consensus rating with an average 12-month price target of $180.44 according to tipranks.com. However, recent upgrades suggest growing confidence in the stock. Bank of America raised its target to $215, while BNP Paribas set a $210 target, both reflecting bullish sentiment about RTX's long-term prospects according to tipranks.com. Jefferies also increased its price target from $175 to $190, maintaining a "Hold" rating but signaling improved fundamentals according to Yahoo Finance. Meanwhile, Bernstein's October 2025 target of $181.0 underscores a measured but positive outlook according to Benzinga.

These price targets, particularly those exceeding $200, indicate that analysts are factoring in RTX's strong earnings performance and strategic momentum. With the stock trading below the highest targets, the gap between current valuation and expectations suggests room for appreciation in 2026.

Earnings Momentum: Sustained Growth Across Segments

RTX's 2025 earnings trajectory has been nothing short of impressive. Q2 results showed a 9% year-over-year sales increase. This momentum carried into Q3, where adjusted sales surged 12% year-over-year to $22.5 billion, driven by 13% organic growth according to Investing.com. GAAP EPS jumped 29% to $1.41, while adjusted EPS rose 17% to $1.70 according to Investing.com. Q4 results showed sales of $21.6 billion (up 9% YoY) and adjusted EPS of $1.54 (up 19% YoY).

The company's full-year 2025 guidance-adjusted sales of $86.5–$87.0 billion and adjusted EPS of $6.10–$6.20-was raised multiple times according to RTX's 2025 results. RTX's $251 billion backlog, including $37 billion in new Q3 awards, provides a clear runway for sustained revenue growth. With free cash flow projected at $7.0–$7.5 billion for 2025, the company is also well-positioned to fund dividends, share buybacks, or strategic investments according to RTX's 2024 results.

Strategic Business Drivers: Innovation and Partnerships

RTX's long-term success hinges on its ability to innovate and adapt to evolving market demands. In 2025, the company prioritized capacity expansion at Raytheon to meet growing defense and aerospace demand. Innovation projects, such as a hybrid-electric propulsion demonstrator for regional aircraft and next-generation braking systems for the A321 XLR, highlight its focus on future technologies.

A pivotal strategic move was the collaboration with Amazon Web Services (AWS) to enhance satellite data processing and mission control operations. By leveraging AWS's cloud-based tools and AI/ML platforms, RTX aims to reduce mission costs, accelerate delivery, and improve flexibility for defense and space customers. This partnership aligns with RTX's broader digital transformation strategy, which includes scalable serverless technologies and AI-driven software development according to Yahoo Finance.

Additionally, RTX's divestiture of non-core businesses, such as Collins' actuation and flight control units, has streamlined operations and sharpened focus on high-margin segments according to Investing.com. The company is also investing in workforce development through partnerships with organizations like FIRST and Girls Who Code, ensuring a pipeline of STEM talent to support future innovation according to RTX's corporate responsibility page.

Conclusion: A Strong Buy Case for 2026

RTX Corporation's 2025 performance and strategic initiatives present a compelling case for a "Strong Buy" in 2026. Analysts' elevated price targets, driven by robust earnings growth and a $251 billion backlog, suggest confidence in the company's ability to deliver shareholder value. Meanwhile, strategic partnerships like the AWS collaboration and R&D investments in cutting-edge technologies position RTX to capitalize on long-term industry trends.

While risks such as macroeconomic volatility or supply chain disruptions exist, RTX's diversified business model, strong cash flow generation, and leadership in critical sectors like defense and aerospace mitigate these concerns. For investors seeking exposure to a company with both near-term momentum and long-term innovation, RTX appears well-positioned to reward patience in 2026.