RTX Stock Today: F‑35 Engine Deal, Canada Weapons Sale and AWS Space Alliance Power 2026 Outlook

December 5, 2025

RTX Corporation (NYSE: RTX), the aerospace and defense giant formerly known as Raytheon Technologies, is ending the week with its share price just below record highs as a wave of new defense and space contracts reshapes the stock’s 2026 outlook.

As of Friday’s session, RTX is trading around $170 per share, slightly below Thursday’s close of $171.31 and roughly 5–6% under its 52‑week high of $181.31 set on October 28. ^[1] Over the past year, the stock has delivered an impressive rally of about 48%, with year‑to‑date gains north of 50%, outpacing both the broader market and many aerospace peers. ^[2]

Behind that move is not just macro‑driven defense spending, but a string of high‑visibility wins: a $1.6 billion F‑35 engine sustainment contract, a $1.25 billion Iron Dome missile order, a $2.68 billion potential weapons sale to Canada where RTX is a prime contractor, and a new cloud and AI‑driven space partnership with Amazon Web Services (AWS). ^[3]

Below is a deep dive into what all of this means for RTX stock right now, and how analysts and algorithms see its trajectory into 2026 and beyond.

RTX stock snapshot on 5 December 2025

Current price: about $170 intraday, down roughly 0.7% on Friday after Thursday’s strong move. ^[4]
Thursday close (Dec 4): $171.31, up 1.7% on the day, with volume of 7.0 million shares vs. a 50‑day average of 4.7 million. ^[5]
52‑week range: ~$112.27 low to $181.31 high. ^[6]
Market cap: roughly $230 billion. ^[7]
Valuation: trailing P/E in the mid‑30s, forward P/E in the mid‑20s and a PEG ratio around 2.6, implying investors are paying a premium for expected growth. ^[8]
Dividend: quarterly dividend of $0.68 per share (annualized $2.72), for a yield around 1.6%, with a payout ratio near 56%. ^[9]

Institutional investors remain heavily involved: about 86.5% of RTX shares are held by hedge funds and other institutions, and SCS Capital Management recently boosted its position by 283%, buying an additional 149,536 shares in Q2 and bringing its stake to over 202,000 shares worth roughly $29.5 million. ^[10]

New December catalysts: engines, missiles, cloud and Canada

1. $1.6 billion F‑35 F135 engine sustainment contract

On December 2, Pratt & Whitney, an RTX business, announced a $1.6 billion undefinitized contract action to sustain F135 engines, which power all three variants of the F‑35 Lightning II. ^[11]

The contract funds:

Depot‑level maintenance and repair
Spare‑parts replenishment and material management
Engineering support and software sustainment
Propulsion system integration for U.S. and international F‑35 operators

Why it matters for the stock:

The F‑35 is a multi‑decade program, and engine sustainment is recurring, high‑visibility revenue, reinforcing RTX’s long‑cycle cash‑flow story.
The award underscores that, despite past issues with engine components, Pratt & Whitney remains central to the F‑35 ecosystem, supporting confidence in long‑term earnings power from this franchise. ^[12]

2. $1.25 billion Iron Dome Tamir missile deal and U.S. production ramp

In late November, RTX said its Raytheon‑Rafael Protection Systems (R2S) joint venture won a $1.25 billion contract to supply Tamir surface‑to‑air missiles for Israel’s Iron Dome system. ^[13]

Key details:

The deal covers Tamir missiles, missile kits and test equipment.
Production will occur at a new facility in Camden, Arkansas, built through a $33 million capital investment and now the first U.S. “all‑up‑round” production site for Tamir and its U.S. variant, SkyHunter, which supports the U.S. Marine Corps’ Medium‑Range Intercept Capability (MRIC) program. ^[14]

For RTX, this:

Deepens its role in Israel’s air defense network and U.S. Marine Corps air defense.
Expands U.S.-based production capacity at a time when missile inventories are under pressure globally. ^[15]

3. U.S.–Canada $2.68 billion air‑strike weapons sale

On December 4, the U.S. State Department approved a possible $2.68 billion Foreign Military Sale of air‑strike weapons and related equipment to Canada. ^[16]

Highlights:

The package includes thousands of precision munitions like GBU‑39 Small Diameter Bombs, BLU‑111 and BLU‑117 bombs, JDAM guidance kits, penetrator warheads and associated support equipment. ^[17]
Boeing and RTX are listed as the principal contractors for the proposed sale. ^[18]

The deal still requires Congressional notification and final negotiations, but if completed it would:

Add to RTX’s international backlog in precision strike and weapons integration.
Strengthen RTX’s role in modernizing NATO air forces, especially within NORAD and allied deterrence posture.

4. Strategic AWS collaboration for space missions

On December 4, Raytheon (an RTX business) announced a strategic collaboration with Amazon Web Services aimed at transforming how it delivers space services. ^[19]

The partnership focuses on:

Cloud‑based satellite data processing
AI/ML‑enabled mission control
More flexible, scalable operations for national security space customers

By leveraging AWS’s cloud, AI and serverless tools, RTX aims to:

Cut mission costs and deployment times
Offer more responsive, software‑driven capabilities to defense and intelligence clients

Analysts see this as strengthening RTX’s positioning in high‑margin, data‑driven space and C4ISR markets, not just hardware. ^[20]

5. $53 million expansion for next‑generation missile defence radars

RTX is also investing $53 million to expand its Lower Tier Air and Missile Defense Sensor (LTAMDS) production facility in Andover, Massachusetts. ^[21]

The project adds 23,000 square feet of space to boost production capacity.
LTAMDS radars are designed to counter advanced threats, including hypersonic weapons, and are key to the U.S. Army’s future air-and-missile defense architecture.

This expansion not only supports RTX’s growing backlog but also positions the company to benefit from U.S. and allied missile defense build‑ups over the next decade. ^[22]

Financial performance: double‑digit growth and a raised 2025 outlook

RTX’s stock story is increasingly backed by fundamental results rather than just headlines.

In its Q3 2025 earnings, RTX reported: ^[23]

Sales: $22.5 billion, up 12% year‑over‑year (13% organic).
GAAP EPS: $1.41, up ~29% vs. the prior‑year quarter.
Adjusted EPS: $1.70, up 17% year‑over‑year.
Free cash flow: $4.0 billion, more than doubling from $2.0 billion a year ago.
Backlog: a record $251 billion (about $148 billion commercial, $103 billion defense).

Segment performance was strong across the board: ^[24]

Collins Aerospace: sales up 8%, with strong commercial OE and aftermarket growth and improved margins.
Pratt & Whitney: sales up 16%, driven by commercial aftermarket, large commercial engines and military volumes (including F‑35 work).
Raytheon: sales up 10%, with robust demand in land and air defense, naval systems and international Patriot programs.

Given this momentum, RTX raised its full‑year 2025 guidance to: ^[25]

Adjusted sales: $86.5–$87.0 billion (up from $84.75–$85.5 billion)
Organic sales growth: 8–9% (up from 6–7%)
Adjusted EPS: $6.10–$6.20 (up from $5.80–$5.95)
Free cash flow: reaffirmed at $7.0–$7.5 billion

AInvest notes that 2025 earnings growth has been broad‑based, with double‑digit EPS expansion and a backlog that gives “a clear runway for sustained revenue growth” into the second half of the decade. ^[26]

How Wall Street views RTX now: Moderate Buy with room to run

Consensus rating and price targets

According to MarketBeat, 23 Wall Street analysts covering RTX currently assign a “Moderate Buy” consensus rating:

3 Strong Buy
15 Buy
5 Hold
0 Sell ^[27]

Their average 12‑month price target is $181, implying roughly 6–7% upside from around $170 today. The target range is wide:

High target: $215
Low target: $129 ^[28]

Recent notable calls include: ^[29]

Bank of America: raised its target from $175 to $215 and rates RTX a Buy.
BNP Paribas: initiated/raised to Outperform with a $210 target.
Jefferies: lifted its target to $190 while keeping a Hold rating.
UBS, Morgan Stanley, Baird, Susquehanna: all boosted targets in the $197–$215 range following Q3 results.

TipRanks and AInvest broadly echo this picture: a Moderate Buy consensus with average targets around $180–$181, and several houses now projecting RTX above $200 in 2026 if execution stays on track. ^[30]

Growth and style scores

Zacks currently assigns RTX: ^[31]

A Zacks Rank #3 (Hold)
A Growth Style Score of B and an overall VGM (Value‑Growth‑Momentum) score of B

Zacks highlights:

A forecast of mid‑single‑digit to high‑single‑digit EPS growth for the current year
A history of positive earnings surprises (average beat close to 10%)
Strong demand across both commercial aerospace and defense, supported by long‑term contracts and robust liquidity

Another Zacks/Nasdaq analysis on geopolitics and defense spending notes that RTX shares had gained roughly 54% year‑to‑date as of November 28, driven by heightened missile, shipbuilding and space demand alongside peers General Dynamics and Northrop Grumman. ^[32]

Longer‑term forecasts: models see upside, but with caveats

Beyond traditional analyst targets, several platforms publish quantitative or valuation‑based forecasts.

Valuation and fair‑value estimates

Simply Wall St’s latest narrative on RTX estimates: ^[33]

Projected 2028 revenue: about $97.7 billion
Projected 2028 earnings: around $8.9 billion
Fair value estimate:$193.79 per share, roughly 13% above current levels

Community fair‑value estimates on the platform range from $131.81 to $193.79, highlighting that opinions differ sharply depending on assumptions about defense budgets and program risk.

Algorithmic price projections

Benzinga, citing CoinCodex’s algorithmic model, reports the following scenario‑based forecasts: ^[34]

2025 average prediction: ~$171.67 (very close to today’s price), with a bullish scenario near $175.87 and a bearish one around $165.57
2026 average prediction: ~$195.65, with bullish $219.71 and bearish $170.02
2030 average prediction: ~$377.74, with a bullish case above $400

These models rely heavily on historical price behavior and volatility rather than fundamentals, so they should be treated as technical reference points, not guarantees.

Valuation, dividend and balance sheet check

From a fundamentals standpoint, RTX today looks like a premium‑valued, cash‑generating defense and aerospace blue chip:

Trailing P/E: roughly 35x
Forward P/E: mid‑20s
PEG ratio: about 2.6
Dividend yield: ~1.6%, with a $0.68 quarterly dividend and payout ratio near 56% ^[35]

Balance sheet and liquidity metrics: ^[36]

Debt‑to‑equity: ~0.58
Current ratio: ~1.07
Quick ratio: ~0.81

RTX also continues to prioritize capital returns:

It returned $0.9 billion to shareholders in Q3 alone and paid down about $2.9 billion of debt. ^[37]
MarketBeat expects full‑year 2025 EPS around $6.11, broadly in line with RTX’s own 6.10–6.20 guidance, suggesting the dividend remains well covered. ^[38]

Overall, RTX does not look “cheap” on simple multiples, but given its backlog, contract visibility and cash‑flow profile, many analysts view the stock as a growth‑at‑a‑reasonable‑price (GARP) candidate rather than a deep value play. ^[39]

Key risks: engines, tariffs, budgets and valuation

Despite strong momentum, RTX is not risk‑free. Investors focused on RTX stock today should keep several pressure points in mind.

Pratt & Whitney GTF engine issues

The powder metal defect affecting Pratt & Whitney’s geared turbofan (GTF) engine fleet has been a multi‑year overhang, triggering large charges, accelerated inspections and compensation for airline customers. ^[40]

RTX is rolling out the GTF “Hot Section Plus” (HS+) upgrade, intended to improve durability and extend time‑on‑wing for affected engines. ^[41]
The success and speed of that remediation will influence both cash flows and reputation in the commercial engine market.

Even as defense contracts grow, a re‑escalation of GTF‑related costs or delays could weigh on margins.

Tariffs and trade policy

RTX has highlighted that tariffs on steel, aluminum and other trade actions could cost it roughly $500–$600 million in 2025, pressuring segment margins. ^[42]

If trade tensions escalate further, these costs could rise or extend beyond current guidance.

Dependence on defense budgets and geopolitics

RTX’s upside is tightly linked to global defense spending, which is currently rising amid conflicts in Ukraine and the Middle East and renewed great‑power competition. ^[43]

But:

A future shift in U.S. or allied budget priorities
Program cancellations or restructurings
Political scrutiny over large‑scale missile defense projects

could slow order growth or reduce visibility.

Valuation and interest‑rate sensitivity

At mid‑30s trailing P/E, RTX trades at a premium to many industrial names and roughly in line with other high‑quality defense peers that have also re‑rated during the 2025 defense boom. ^[44]

If interest rates stay higher for longer or growth expectations cool, multiples could compress, even if earnings continue to rise.
The wide spread between bullish and bearish long‑term scenarios in algorithmic and valuation models reflects the uncertainty around how far this re‑rating can go. ^[45]

What to watch next for RTX stock

For investors tracking RTX into 2026, several catalysts and checkpoints stand out:

Execution on major contracts
- Progress and margin profile on the F135 sustainment award.
- Ramp‑up at the Camden Tamir missile facility and delivery cadence under the $1.25 billion Iron Dome deal. ^[46]
Canada weapons package timeline
- Congressional approval and contract finalization for the $2.68 billion Canada air‑strike weapons sale, and how much of that value flows to RTX vs. Boeing. ^[47]
AWS collaboration milestones
- Concrete space‑program wins that explicitly leverage the AWS cloud and AI stack, and any disclosure of cost or schedule advantages versus legacy architectures. ^[48]
Backlog growth and book‑to‑bill
- Whether RTX can continue to grow its $251 billion backlog while expanding segment margins as supply chains normalize. ^[49]
Engine remediation & commercial aerospace cycle
- Updates on GTF inspections, HS+ upgrades and compensation costs, and how that interacts with airline fleet plans and aftermarket demand. ^[50]
Capital allocation
- The pace of share repurchases, dividend growth and debt reduction, especially as free cash flow lands in the $7–$7.5 billion range. ^[51]

Bottom line

RTX stock today sits near all‑time highs after a banner 2025, underpinned by:

Double‑digit sales and earnings growth
A swelling $251 billion backlog
Major new contracts in F‑35 engines, Iron Dome missiles, missile defense radars and Canadian air‑strike weapons
A forward‑looking cloud and AI alliance with AWS in the space domain

Wall Street broadly sees moderate upside from current levels, with average targets around $181 and several bullish houses projecting $200+ over the next 12–18 months, assuming continued contract wins and clean execution. ^[52]

That said, RTX remains a premium‑priced defense and aerospace leader with real risks—especially around engine remediation, tariffs and future budget priorities. For investors, the stock increasingly represents a long‑term, cash‑flow‑driven growth story rather than a short‑term bargain.

Disclosure & disclaimer:
This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or a prediction of future performance. Always do your own research or consult a licensed financial advisor before making investment decisions.