New York, April 27, 2026, 12:03 EDT
- RTX hovered around $174 in late-morning New York trading, following a downgrade to “hold” from “buy” by Erste Group.
- RTX snapped a five-day slide, despite topping first-quarter estimates and bumping up its 2026 outlook.
- Shares remain under pressure, weighed down by tariff costs, valuation concerns, and a wider pullback across defense stocks.
RTX didn’t recover much ground Monday, staying under pressure after Erste Group Bank cut its rating to “hold” from “buy.” That move followed last week’s steep drop. Shares hovered near $174.16, barely budging, trading between $173.10 and $176.95 during the session. Finviz
The timing of the downgrade is notable—coming just days after RTX posted results that typically reassure defense investors: sales and profits up, and management lifting its full-year outlook. But the market isn’t buying it this time. There’s fresh skepticism about whether stronger demand for missiles, jet engines and maintenance will be enough to counter higher tariffs and a stock price that had already sprinted ahead until the recent retreat.
RTX dropped 11.3% in just five sessions, according to Trefis, erasing roughly $30 billion in market cap. The S&P 500, meanwhile, edged up 0.5%. That puts RTX’s valuation close to $235 billion. The market, for now, isn’t rewarding a beat-and-raise quarter.
Erste downgraded RTX to “hold,” according to MarketBeat, after having only started coverage at “buy” back on March 24, Finviz data showed Monday. Despite the shift, MarketBeat’s tally still reflects a “Moderate Buy” consensus overall: 13 analysts rate it buy, with seven holds, one strong buy, and just one sell recommendation. MarketBeat
RTX posted first-quarter sales of $22.1 billion, climbing 9% from last year. Adjusted earnings per share came in at $1.78, marking a 21% increase. That adjusted EPS figure strips out some acquisition and accounting impacts. For 2026, the company bumped up its adjusted sales target to a range of $92.5 billion to $93.5 billion and sees adjusted EPS landing between $6.70 and $6.90.
Chris Calio, chairman and CEO, described the quarter as a “very strong start” to 2026, highlighting “strength … in our defense business” after RTX lifted its outlook. The company’s backlog landed at $271 billion: $162 billion in commercial, $109 billion in defense. RTX
Portfolio results landed in positive territory this quarter. Raytheon’s top line climbed 10%, bolstered by solid demand for its land and air defense platforms like Patriot and GEM-T missiles. Pratt & Whitney posted an 11% revenue increase, driven in part by a 19% jump in commercial aftermarket sales—mainly parts and repair after aircraft are in operation. Collins Aerospace turned in 5% sales growth.
Tariffs are still a pressing concern. Chief Financial Officer Neil Mitchill told analysts there’s “no change today” regarding RTX’s tariff stance. So far, the company has paid around $500 million in tariffs under the International Emergency Economic Powers Act. Mitchill said they’ll pursue refunds as the process comes into focus. RTX hasn’t recognized any income tied to potential reversals, and those possible refunds aren’t reflected in current guidance. Investing.com
RTX’s numbers and outlook continue to back the fundamentals, according to Traders Union’s Viktoras Karapetjanc, but short-term momentum hasn’t turned around. Karapetjanc previously pointed to $177.60 as a key support—if shares held there, a “stabilize and potentially rebound” scenario was possible. By late Monday morning, though, the stock had dipped under that mark. Traders Union
It’s not just RTX feeling the squeeze. Northrop Grumman dropped 5% last week, despite posting stronger first-quarter revenue. The company left its 2026 sales outlook untouched, a contrast to RTX, which had just bumped its own forecast, as Reuters pointed out.
Despite surging weapons demand, defense names haven’t kept up. Lockheed Martin, Northrop, RTX, General Dynamics, and L3Harris are all trading well below highs reached in the aftermath of the Iran-war headlines, Barron’s notes. The issue: much of the anticipated boost from increased defense spending may already be reflected in the shares.
RTX doesn’t have to prove demand—it’s there. The bigger concern: Can it actually convert that backlog into cash quickly and without hiccups? With tariffs, pricier engines, and rotation across the sector making buyers think twice, that’s what will test the valuation.
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