Schaeffers Research
20 Oct 2026, 14:52 UTC · 1h ago
Defense Stock Rises on Earnings Beat, Raised Forecast
Impact · against what's priced in
RTX's earnings beat and raised guidance provide evidence that the market's skepticism regarding backlog conversion and margin suppression may be misplaced. By exceeding expectations and raising the outlook, the company is moving toward the higher growth and profitability levels the stock has previously declined to pay for.
- RTX+0.40
Challenges what's priced in
- The price assumes
A sustained acceleration in total revenue toward a 14.7% compound annual growth rate
The price had declined to pay for revenue acceleration, but a Q3 revenue beat ($24.97B vs $24.03B) and a raised full-year outlook suggest the company is performing above the baseline growth the market currently assumes.
What RTX's price assumes · Aug 26
