RTX Corporation (NYSE: RTX) has become one of 2025’s standout defense names. After a powerful rally and a string of fresh contract wins, investors are asking whether the stock still has room to run – or if expectations are starting to run ahead of fundamentals.
As of early December, RTX trades around the low‑$170s per share, near the middle of its 52‑week range of roughly $112–$181, with a market value in the mid‑$220 billion range and a trailing price‑to‑earnings multiple in the mid‑30s. [1] The share price is up around 45–50% year to date and has delivered strong multi‑year returns, outpacing many broader indices. [2]
At the same time, RTX has just secured a $1.6 billion F‑35 engine sustainment deal, announced a strategic cloud partnership with Amazon Web Services (AWS), and is in line to supply weapons under a $2.68 billion air‑strike system sale to Canada – all within the past week. [3]
Here’s a detailed look at the latest news, forecasts and analysis around RTX stock as of December 6, 2025.
RTX stock today: price, performance and setup
Recent data from analyst platforms shows RTX:
- Trading around $171–$172 per share
- With a 52‑week low near $112 and high near $181
- A market cap around $226–$229 billion
- A P/E ratio in the mid‑30s, and a dividend yield just over 1.5% based on a quarterly dividend of $0.68 per share (about $2.72 annualized) [4]
Simply Wall St’s performance analysis highlights a roughly 44.8% year‑to‑date return and about 150%+ total return over five years, underscoring how strongly the stock has compounded for long‑term holders. [5]
In other words, RTX is no longer a “cheap turnaround” after its 2023 engine‑related troubles; it’s now priced more like a high‑quality compounder whose future growth needs to justify premium multiples.
Latest December headlines moving RTX
1. $1.6 billion F135 sustainment contract reinforces the F‑35 engine franchise
On December 2, 2025, RTX announced that Pratt & Whitney, its engine unit, has been awarded a $1.6 billion undefinitized contract action from the U.S. Department of Defense to sustain F135 engines, which power all three variants of Lockheed Martin’s F‑35 fighter jet. [6]
The contract funds:
- Depot‑level maintenance and repair
- Spare‑parts replenishment and material management
- Engineering and software support for U.S. and international F‑35 operators
RTX notes that over 1,300 F135 engines have been delivered to the U.S. and 20 allied nations, and this sustainment award leans into the long‑cycle aftermarket economics of the F‑35 program – a key pillar of RTX’s investment case. [7]
Why it matters for the stock:
- Sustainment contracts typically offer higher‑margin, recurring revenue.
- The F‑35 program runs over decades, adding visibility to RTX’s defense cash flows.
- It signals continued confidence from the Pentagon in Pratt & Whitney’s engine roadmap after prior reliability issues in earlier programs.
2. Canada’s planned $2.68 billion air‑strike weapons purchase adds to the pipeline
TipRanks reports that the Government of Canada is planning to purchase an air‑strike weapons system in a deal valued at $2.68 billion, with RTX as a principal contractor alongside Boeing. [8]
The U.S. State Department has approved the potential sale, framing it as a major arms transfer between two NATO partners. [9] The deal is part of Canada’s push to move defense spending toward 2% of GDP, which implies billions in incremental spending on equipment such as RTX’s weapons systems over the coming years. [10]
Takeaway: this kind of multi‑billion‑dollar foreign military sale:
- Supports RTX’s missiles and munitions backlog
- Reinforces its role in NATO modernization
- Adds to the narrative that rising geopolitical tensions are structurally good for high‑end defense contractors
3. Raytheon–AWS cloud partnership pushes RTX deeper into space and AI
On December 4, Raytheon, RTX’s defense and space business, announced a strategic collaboration agreement with Amazon Web Services (AWS). The goal: transform satellite data processing and mission control operations using AWS’s cloud, artificial intelligence and machine‑learning technologies. [11]
Key elements of the collaboration include:
- Moving satellite data processing and mission control workloads into scalable cloud‑based architectures
- Using AWS AI/ML services (including tools such as Amazon SageMaker and Amazon Bedrock) plus Outposts and serverless technologies to accelerate mission software development and deployment [12]
- Targeting improved national‑security space capabilities, reduced mission costs and faster delivery of new space capabilities for government customers [13]
For investors, this matters because:
- It tilts RTX more toward software‑defined, cloud‑native architectures, an area where valuation multiples can be higher than for pure hardware.
- It complements RTX’s traditional strengths in sensors and missiles with a “digital brain” layer in orbit and on the ground.
Simply Wall St frames the AWS deal, together with F135 sustainment funding and new Iron Dome missile orders, as deepening RTX’s role in long‑term, high‑tech defense infrastructure rather than changing the story outright – more of a reinforcement than a radical pivot. [14]
Earnings momentum: Q3 2025 beat and raised outlook
RTX’s fundamental story in late 2025 is anchored by a strong Q3 2025 earnings beat and upgraded guidance:
- Q3 2025 sales: about $22.5 billion, up 12% year over year, beating expectations around $21.3 billion
- Adjusted EPS:$1.70, up 17% YoY and roughly $0.29 above consensus
- Free cash flow: about $4.0 billion for the quarter
- Backlog: roughly $251 billion, split between $148 billion commercial and $103 billion defense [15]
Following these results, RTX raised its full‑year 2025 guidance to:
- Adjusted sales: $86.5–$87.0 billion (up from about $84.75–$85.5 billion)
- Adjusted EPS:$6.10–$6.20 (up from approximately $5.80–$5.95)
- Free cash flow: reaffirmed at $7.0–$7.5 billion [16]
This strong execution is echoed in MarketBeat’s and TipRanks’ summaries, which note RTX’s consistent earnings beats, margin expansion, and debt reduction, as well as a steady return of cash to shareholders via dividends and buybacks. [17]
Bottom line on fundamentals: RTX is currently delivering double‑digit revenue growth across all three segments (Collins Aerospace, Pratt & Whitney, and Raytheon), expanding margins, and converting that growth into solid free cash flow while growing a record backlog. [18]
What Wall Street is saying about RTX stock
Consensus ratings and price targets
Several data providers show a broadly constructive analyst view:
- MarketBeat: about three Strong Buy, fifteen Buy, and five Hold ratings, for an overall “Moderate Buy” consensus and an average target near $181. [19]
- TipRanks: 14 analysts over the last three months rate RTX a Moderate Buy, with 10 Buys and 4 Holds and a 12‑month average price target of $195.29, implying roughly 14% upside from current levels. [20]
High‑profile houses include:
- Morgan Stanley: “Overweight,” with a $215 price target, citing strong fundamentals and a relative valuation discount versus peers; RTX is flagged as the firm’s top pick in the aerospace industry in a recent “best defense stocks” list. [21]
- Bank of America: “Buy,” with a target also raised toward $215, reflecting confidence in multi‑year growth drivers. [22]
- Jefferies: “Hold,” but with a target lifted from $175 to $190, signaling that even neutral analysts see some residual upside from current levels. [23]
TipRanks also reports that RTX carries a Smart Score of 9/10 (“Outperform”), a composite metric reflecting analyst sentiment, earnings trends, insider and hedge‑fund activity, and technical indicators. [24]
Street forecasts for 2025 and beyond
Looking at the consensus numbers:
- 2025 EPS forecast: around $6.21
- 2025 revenue forecast: about $86.96 billion [25]
Those are in line with – and slightly above – RTX’s own raised guidance, implying the Street expects the company to deliver at the upper end of its range.
Simply Wall St’s longer‑term narrative model projects RTX reaching roughly $97.7 billion in revenue and $8.9 billion in earnings by 2028, which would correspond to mid‑single‑digit annual revenue growth and higher earnings growth as margins expand. [26]
Is RTX overvalued after a ~50% rally?
This is where analyst opinions begin to diverge.
A premium price for a premium business…
TipRanks’ analyst target of around $195 and Morgan Stanley’s $215 target both suggest RTX is undervalued relative to their DCF and comparable‑company work, with mid‑teens to mid‑20s upside from today’s quote. [27]
Given RTX’s:
- Double‑digit top‑line growth
- Expanding margins
- Record backlog
- Exposure to defense and aerospace spending up‑cycles
many bulls argue that a mid‑30s P/E and PEG ratio below 1 (on some forecasts) is justified for a business of this quality and duration. [28]
…but not everyone agrees
A recent deep‑dive by Simply Wall St, titled “Is RTX Fairly Priced After Strong 44.8% Year‑To‑Date Return?”, reaches a more cautious conclusion. Their discounted cash flow (DCF) model:
- Estimates fair value at $144.75 per share
- Suggests RTX is trading at a 16.1% premium to intrinsic value, implying the stock may be overvalued at current levels
- Notes that RTX’s P/E of ~34x is broadly in line with peers and the sector average, meaning the stock is “about right” on earnings multiples, even if DCF implies some overvaluation [29]
In short, valuation is not obviously cheap: bullish analysts see more upside from sustained growth and contract flow, while some fundamental models say the market already prices in much of that optimism.
Technical picture: strong long‑term trend, choppy near‑term signals
A December 6 technical report from StockTradersDaily highlights the tug‑of‑war in RTX’s chart:
- Near‑term sentiment (1–5 days) is labeled “weak”, with resistance in the low‑$170s
- Mid‑term (5–20 days) looks neutral
- Long‑term (20+ days) remains “strong”, with resistance levels mapped closer to the stock’s prior high around $180–$181 [30]
The service outlines both long and short tactical setups around current levels, but the overarching takeaway is that RTX’s primary up‑trend is intact, even as shorter‑term traders may face choppy price action after such a big year‑to‑date move. [31]
Sector context: defense screens and institutional flows
RTX also features prominently in sector screens and institutional activity:
- MarketBeat’s “Best Defense Stocks To Watch Today – December 6th” list includes RTX among the highest dollar‑volume defense names, alongside GE Aerospace, Boeing, Parsons, Rocket Lab, Lockheed Martin and Howmet Aerospace – a sign that RTX is central to the current defense trade. [32]
- MarketBeat’s filings coverage on December 6 notes new positions from Clear Street LLC and adjustments from long‑time holders like Hendershot Investments, with overall institutional ownership around 86.5% of shares outstanding. [33]
High institutional ownership and heavy trading volume typically support liquidity and can dampen volatility – part of the appeal for investors looking for defensive exposure that’s still relatively easy to trade.
Key catalysts and risks to watch into 2026
Major catalysts
- Defense budgets and geopolitics
Rising defense budgets – exemplified by the U.S. fiscal 2026 National Defense Authorization Act and Canada’s push toward NATO’s 2% GDP target – underpin multi‑year demand for RTX’s missiles, sensors and command‑and‑control systems. [34] - F‑35 and engine franchise growth
The F135 sustainment contract, plus prior production awards, reinforce Pratt & Whitney’s role at the center of the F‑35 program, one of the most important long‑term defense platforms globally. [35] - Space and cloud‑enabled defense
The AWS collaboration positions Raytheon to capture a growing slice of software, AI and cloud spending in space and national‑security missions, a segment that could carry higher margins and sticky, software‑like revenue. [36] - Backlog conversion and margin expansion
RTX’s $251 billion backlog gives it a long runway; the story over the next few years is about converting that backlog into revenue while expanding margins through mix, scale and operational efficiency. [37] - Upcoming earnings
The next earnings report, currently expected around late January 2026, will be a key checkpoint on whether RTX can keep beating a now‑higher bar of expectations. [38]
Key risks
- Valuation risk
If defense spending expectations cool or execution stumbles, a mid‑30s P/E multiple could compress materially, especially if investors rotate out of “defensive growth” into other sectors. - Budget and program risk
RTX remains highly dependent on U.S. and allied defense budgets. Any cuts, program delays or changes in priorities (for example, shifts away from certain missile systems or aircraft platforms) could weigh on growth. - Execution in complex programs
Large engine and missile programs carry technical and regulatory risk. Cost overruns, quality issues, or schedule slips could pressure margins and sentiment. - Macroeconomic and commercial aerospace cycles
While defense is relatively resilient, RTX also has meaningful commercial exposure through Collins Aerospace and parts of Pratt & Whitney, which can be affected by airline health and global travel cycles.
So, is RTX stock a buy after December’s news?
From a news and fundamentals standpoint, RTX enters December 2025 with:
- Strong execution (earnings beats, raised guidance, record backlog) [39]
- Fresh contract momentum (F135 sustainment, Canada weapons sale, ongoing international missile and avionics wins) [40]
- A strategic shift deeper into cloud‑ and AI‑enabled space missions via the AWS deal [41]
- Generally bullish but not euphoric Wall Street sentiment, with moderate‑buy ratings and price targets suggesting mid‑teens upside rather than a moonshot [42]
At the same time, the stock:
- Has already delivered a big 2025 rally
- Trades on premium multiples compared with the broader market [43]
- Faces valuation debate between DCF‑based skeptics and growth‑focused bulls [44]
For long‑term investors who believe in:
- Persistent geopolitical tensions
- Continued F‑35 and missile demand
- The strategic importance of cloud‑enabled, AI‑driven defense and space systems
RTX remains a compelling large‑cap way to gain exposure to those themes, backed by a sizable dividend and robust balance sheet.
For new entrants worried about buying after a big run, it may make sense to:
- Pay attention to upcoming earnings and any pullbacks toward lower support levels highlighted by technical analysts
- Compare RTX’s valuation and growth profile with peers like Lockheed Martin, Northrop Grumman and GE Aerospace before committing fresh capital [45]
Either way, the story around RTX stock on December 6, 2025 is one of a defense and aerospace giant firing on multiple cylinders – engines, missiles, and now cloud‑powered space infrastructure – with the main open question being how much of that strength is already reflected in today’s price.
This article is for informational purposes only and does not constitute financial or investment advice. Always consider your own objectives and risk tolerance, and, if needed, consult a qualified financial adviser before making investment decisions.
References
1. www.marketbeat.com, 2. simplywall.st, 3. www.rtx.com, 4. www.marketbeat.com, 5. simplywall.st, 6. www.rtx.com, 7. www.rtx.com, 8. www.tipranks.com, 9. www.tipranks.com, 10. www.tipranks.com, 11. www.rtx.com, 12. www.stocktitan.net, 13. investingnews.com, 14. simplywall.st, 15. coincentral.com, 16. coincentral.com, 17. www.marketbeat.com, 18. coincentral.com, 19. www.marketbeat.com, 20. www.tipranks.com, 21. wtop.com, 22. www.marketbeat.com, 23. www.tipranks.com, 24. www.tipranks.com, 25. www.tipranks.com, 26. simplywall.st, 27. www.tipranks.com, 28. www.tipranks.com, 29. simplywall.st, 30. news.stocktradersdaily.com, 31. news.stocktradersdaily.com, 32. www.marketbeat.com, 33. www.marketbeat.com, 34. wtop.com, 35. www.reuters.com, 36. www.rtx.com, 37. coincentral.com, 38. www.tipranks.com, 39. coincentral.com, 40. www.rtx.com, 41. www.rtx.com, 42. www.tipranks.com, 43. simplywall.st, 44. simplywall.st, 45. www.marketbeat.com
