Zacks Investment Research
20 Oct 2026, 13:45 UTC · 1h ago
RTX Q3 Earnings Outpace Estimates, Revenues Increase Y/Y
Impact · against what's priced in
RTX reports a significant beat on both top and bottom lines, specifically validating the margin expansion and aftermarket growth that the market had previously been skeptical of. The results challenge the prevailing assumption of structural margin suppression, suggesting the company is converting its record backlog into profit more efficiently than priced in.
- RTX+0.70
Challenges what's priced in
- The price assumes
A significant expansion in free cash flow margin above the current 9.0%
The market was not paying for margin expansion, yet adjusted segment operating margins expanded 310 basis points to 15.2%, with expenses rising only 8.8% against 11.1% revenue growth.
What RTX's price assumes · Aug 26
