RTX

RTX stock has delivered a very strong 5 year run, yet current valuation checks send a mixed message, with a Discounted Cash Flow (DCF) view pointing to some undervaluation while market multiples look closer to fair. Recent contract wins in defense and aerospace add fresh context to that gap between price and intrinsic value estimates. Over the past 5 years RTX has returned 169.7%, which puts fresh focus on whether the current share price already embeds most of the good news. RTX’s recent multi year U.S. defense contracts and capacity expansions can support future cash flow expectations, while execution risks on large programs and capital intensive projects may affect how much of that translates into value for shareholders. With a value score of 3, RTX screens as a mixed picture rather than a clear bargain or clear overvaluation on the broader set of valuation checks. The issue now is whether RTX’s share price around US$200.78 already reflects its intrinsic value estimate, or whether the current 13.7% discount implied by the Discounted Cash Flow (DCF) analysis leaves meaningful upside over the coming years. Spot opportunities beyond RTX by scanning 54 high quality undervalued stocks that share a mix of strong multi year returns, active contract pipelines, and valuation signals that are not fully aligned with current market pricing. The Discounted Cash Flow (DCF) model estimates what RTX is worth today based on projected future cash the business can return to shareholders. RTX is generating latest twelve month free cash flow of about $10.6b and the model assumes these cash flows keep growing rather than shrinking, then gradually slow as the company matures. On those assumptions, the DCF model points to an intrinsic value near $233 per share, compared with the current share price around $200.78. That implies RTX screens as about 13.7% undervalued on this cash flow view. The recent $22.9b Tomahawk missile contract helps explain why the cash flow outlook used in the model is relatively supportive, even if the market is not fully reflecting that in the current price. Overall, the DCF work suggests RTX stock appears undervalued relative to the cash flows implied by its current contract base and growth plans. Our Discounted Cash Flow (DCF) analysis suggests RTX is undervalued by 13.7%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for RTX. P/E is a useful cross check for RTX because earnings remain a key anchor for how investors price mature aerospace and defense companies. RTX currently trades on a P/E of about 35.0x, compared with an Aerospace & Defense industry average of roughly 35.9x and a wider peer group average near 47.7x. The fair P/E ratio estimate for RTX is 32.9x, which reflects what investors might pay given its sector, profitability profile, size and risk. The actual 35.0x multiple sits only slightly above that mark, so the stock does not screen as especially cheap or especially expensive on earnings alone. This is consistent with the mixed picture from the broader valuation checks, where the P/E multiple is broadly aligned with what the model suggests is reasonable for RTX at this stage. On the P/E multiple, RTX appears to be priced at roughly a fair level rather than offering a clear discount or premium. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for RTX pick up where the valuation checks leave off and spell out which future paths for RTX's growth, margins and earnings would make the stock look materially higher or lower than today's price on a reasoned basis. Instead of stopping at a single output from a ratio or model, they unpack the future business conditions and milestones that figure assumes so you can watch how RTX's real world progress lines up over time. Share your own RTX Narrative in the Simply Wall St community and set out a clear, number driven view on whether contracts like the Tomahawk missile deal and recent capacity expansions really support today's price. It can be a useful way to track how your thesis holds up as new contracts, test milestones and results land. Do you think there's more to the story for RTX? Head over to our Community to see what others are saying! For RTX, the Discounted Cash Flow (DCF) work points to intrinsic value that sits above the current share price, while the P/E cross check suggests the market already prices the stock at roughly a fair level. That split reflects a cash flow view that leans on contract backed visibility, in contrast with a market view that gives more weight to where peers trade and to current sentiment. With the broader valuation checks landing in mixed territory, the key question is whether RTX converts its contract pipeline into the cash flows that would close the gap, or whether execution risks on large, capital intensive programs justify the current market stance. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RTX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Howmet Aerospace Inc. HWM reported better-than-expected second-quarter 2026 results on Aug. 6. Earnings per share surpassed the Zacks Consensus Estimate by 8.1% and surged 46% year over year.Total revenues of $2.55 billion surpassed the consensus estimate of $2.41 billion and increased 24% year over year. The second-quarter results benefited from persistent strength in its commercial and defense aerospace markets.HWM has been reporting strong earnings results courtesy of solid financial and operational performance from its segments. Backed by robust results and improving fundamentals, the company lifted its financial outlook. For 2026, Howmet Aerospace raised its revenue outlook to $10.00-$10.10 billion from $9.575-$9.725 billion. Adjusted EBITDA is now anticipated between $3.21 billion and $3.25 billion, higher than $3.025-$3.095 billion expected earlier. It also raised its adjusted earnings to $5.23-$5.31 per share from $4.88-$5.00. The strongest driver of Howmet Aerospace’s business at the moment is the commercial aerospace market. The strength in air travel continues, with both narrow and wide-body aircraft demand picking up, supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.In the second quarter of 2026, revenues from the commercial aerospace market surged 28% year over year, constituting 53% of the company’s business. Also, in the first quarter, revenues from the market increased 20% year over year. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Also, healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX aircraft, hold promise for HWM’s spare engine demand.Expanding the defense budget remains another growth catalyst for Howmet Aerospace. The defense aerospace industry has also been witnessing positive momentum, cushioned by steady government support. HWM has been witnessing robust orders for engine spares for the F-35 program and spares for other legacy fighters. In the second quarter, revenues from the defense aerospace market increased 11% year over year, constituting 15% of the company’s revenues.It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for GE Aerospace, which remains focused on its defense business.HWM also remains open to strengthening its business through acquisitions. In April 2026, it completed the acquisition of Stanley Black’s business unit, Consolidated Aerospace Manufacturing LLC (“CAM”), for $1.8 billion. CAM’s well-known brands, engineering expertise and strong customer relationships have strengthened its aerospace fastening solutions portfolio.The company also remains committed to increasing shareholder value through dividend payouts and share repurchases. For instance, in the first six months of the year, it paid dividends worth $97 million. In July 2026, the company hiked its dividend by 17% to 14 cents per share (annually: 56 cents). Also, year to date through July, it repurchased shares worth $800 million. Shares of the company have gained 57.3% in the past year compared with the industry’s and the S&P 500 composite’s growth of 4.7% and 22.8%, respectively. It has also outperformed other industry players like RTX Corporation RTX and Textron Inc. TXT, which have returned 44.7% and 12.9%, respectively, over the said time frame. Image Source: Zacks Investment Research Earnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.The Zacks Consensus Estimate for 2026 earnings increased 5.5% to $5.18 per share, suggesting year-over-year growth of 37.4%. The consensus mark for 2027 earnings moved up 3.4% to $6.05 per share, indicating a year-over-year increase of 16.8%. As earnings estimates increase, the stock is likely to follow suit. Image Source: Zacks Investment Research The stock trades at a forward 12-month price-to-earnings (P/E) ratio of 50.98X, higher than the industry average of 34.49X. Also, it is overvalued compared with its peers, RTX Corp. and Textron. Notably, RTX Corp. and Textron are trading at 29.69X and 12.74X, respectively. Image Source: Zacks Investment Research Solid momentum across the commercial and defense aerospace markets, supported by impressive build rates, spare demand for engines and a robust defense budget, positions Howmet Aerospace favorably for strong growth in the quarters ahead. Built on a sound liquidity position, HWM’s shareholder-friendly policies also add to its appeal. Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Embraer S.A. EMBJ reported second-quarter 2026 earnings of $1.19 per American Depository Share (“ADS”), beating the Zacks Consensus Estimate of 61 cents by 95.1%. The bottom line surged 177.4% from 43 cents per ADS a year ago.The company reported GAAP earnings of 30 cents per ADS compared with 11 cents in the second quarter of 2025. Revenues of $2.24 billion increased 22.9% year over year and topped the Zacks Consensus Estimate of $2.05 billion by 8.9%. The revenue increase reflected higher activity across Executive Aviation, Defense & Security, Commercial Aviation and Services & Support. Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote Embraer delivered 65 aircraft in the quarter, up 6.6% from 61 a year ago. Commercial Aviation deliveries rose to 20 aircraft from 19, while Executive Aviation deliveries increased to 45 from 38.The company-wide firm order backlog reached a record $34.5 billion, up 16% year over year. Commercial Aviation backlog rose 15% to $15.1 billion, Executive Aviation increased 5% to $7.8 billion, Defense & Security climbed 42% to $6.1 billion, and Services & Support advanced 12% to $5.5 billion. Executive Aviation: This segment’s revenues climbed 32% to $725 million, supported by higher volumes and product mix. Its adjusted EBIT margin expanded to 23.4% from 14.5%.Defense & Security: This segment’s revenues rose 38% to $304 million on stronger KC-390 revenue recognition tied to customer mix and product stage. Its adjusted EBIT margin improved to 11.9% from 9.2%. Commercial Aviation: Revenues increased 8% year over year to $625 million, mainly on higher volumes. Its adjusted EBIT margin declined to 2.9% from 4.3%.Services & Support: This segment’s revenues advanced 24% to $565 million, while its adjusted EBIT margin increased to 18.7% from 15.5%.Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest, the landing gear division and other businesses. Revenues for this segment declined 6% to $15 million, primarily reflecting lower deliveries in agricultural aviation during the quarter. Embraer’s operating income amounted to $285.8 million compared with $179.5 million in the second quarter of 2025.The company posted adjusted EBITDA of $355.6 million compared with $245.5 million a year ago. As of June 30, 2026, EMBJ’s cash and cash equivalents amounted to $1.39 billion compared with $1.95 billion as of Dec. 31, 2025.Its adjusted free cash flow (without Eve) for the second quarter of 2026 totaled $401 million against the adjusted free cash outflow of $161.6 million in the prior-year period.The net cash provided by operating activities during the first six months of 2026 amounted to $204.4 million against the net cash outflow from operating activities of $134.1 million during the first six months of 2025. Embraer continues to expect 80-85 Commercial Aviation deliveries and 160-170 Executive Aviation deliveries in 2026. The company also maintained its revenue outlook of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, which is higher than the company’s guided range.EMBJ raised its adjusted EBIT margin guidance to 10-10.6% from 8.7-9.3%. It also lifted its adjusted free cash flow outlook excluding Eve to at least $400 million from at least $200 million. Embraer currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (EMBJ) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kratos Defense & Security Solutions, Inc. KTOS reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents. Kratos Defense reported GAAP earnings of 2 cents per share, which came in line with the year-ago quarter. Revenues of $458.8 million beat the consensus estimate of $412 million by 11.4% and increased 30.5% year over year. Kratos Government Solutions led the growth, while total organic revenues advanced 19.1%. Product sales climbed 33.5% year over year to $289.1 million. Service revenues increased 25.8% to $169.7 million. Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote Selling, general and administrative expenses jumped 35.5% to $73.3 million. Research and development expenses rose 33.3% to $13.6 million.Amortization of intangible assets increased to $10.1 million from $2.8 million, while depreciation rose to $3.9 million from $3 million. Kratos recorded an operating loss of $1.6 million against the operating income of $3.7 million a year earlier. Unmanned Systems: Revenues from this segment totaled $79.1 million compared with $73.2 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.Kratos Government Solutions: Revenues from this segment amounted to $379.7 million compared with $278.3 million in the year-ago quarter. This rise was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2%, 43.3%, 29.5% and 8.7%, respectively, year over year. As of June 28, 2026, cash and cash equivalents totaled $1.44 billion, up from $0.56 billion as of Dec. 28, 2025.The company reported other current liabilities of $19.9 million as of June 28, 2026 compared with $9 million recorded as of Dec. 28, 2025.The net cash used in operating activities amounted to $38.4 million during the first six months of 2026 compared with $40.9 million in the same period of 2025. Consolidated bookings totaled $492.2 million in the second quarter, resulting in a book-to-bill ratio of 1.1. The last-12-month book-to-bill ratio was 1.3, with bookings of $1.99 billion.Backlog increased to $2.08 billion as of June 28, 2026 from $2.05 billion at the end of the first quarter. Funded backlog was $1.57 billion, while unfunded backlog totaled $512.7 million. The bid and proposal pipeline expanded to $15 billion from $14.3 billion. KTOS projects second-quarter 2026 revenues to be in the range of $460-$480 million. The Zacks Consensus Estimate for revenues is pegged at $460.3 million, which is at the lower end of the company’s guided range.Kratos raised its full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion. The Zacks Consensus Estimate for revenues is pegged at $1.75 billion, which is at the lower end of the company’s guided range.Kratos Defense now expects operating cash flows to be in the range of $30-$50 million and free cash flow to be in the band of $85-$105 million for 2026. Kratos Defense currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Howmet Aerospace Inc. HWM is scheduled to release second-quarter 2026 results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.23 per share on revenues of $2.41 billion.The company’s second-quarter earnings estimates have decreased a penny over the past 30 days. However, the bottom-line projection indicates an increase of 35.2% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 17.5%. Image Source: Zacks Investment Research The company has surpassed the Zacks Consensus Estimate thrice and missed once in the preceding four quarters, the average surprise being -1.3%. In the last reported quarter, it reported earnings of 86 cents per share, which missed the consensus estimate by 22.5%. Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote Our proven model does not conclusively predict an earnings beat for HWM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below. Earnings ESP: HWM has an Earnings ESP of -0.83% as the Zacks Consensus Estimate is pegged at $1.23 per share, which is higher than the Most Accurate Estimate of $1.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: HWM currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here. Howmet Aerospace’s second-quarter results are expected to gain from persistent strength in its commercial aerospace market. Solid demand in the air transport market has been driving demand for wide-body aircraft, thereby supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.Increasing popularity for new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines are expected to have proven promising for HWM in the second quarter. The Zacks Consensus Estimate for revenues from the commercial aerospace market is pegged at $1.29 billion, indicating a 21.7% rise from the year-ago quarter number.Also, the company's defense aerospace market remains a key growth driver, backed by stable government funding. HWM is continuing to experience robust orders for engine spares for legacy fighters like the F-15 and the F-16. This is expected to have augmented its revenues in the to-be-reported quarter. The consensus estimate for revenues from the defense aerospace market is pegged at $388 million, indicating 10.2% growth from the year-ago quarter’s number.However, Howmet Aerospace has been facing weakness in the commercial transportation market served by the Forged Wheels segment, due to lower OEM builds and tariff-related impacts in North America. This is likely to have affected its second-quarter performance.Howmet Aerospace is dependent on a global supply chain, and in recent years, it has experienced supply-chain disruptions in the aerospace sector that resulted in delays and increased costs. Despite moderation, the persistence of supply-chain issues in the aerospace sector is likely to have affected its operations and performance. HWM shares have gained 29.1% in the past six months compared with the Zacks Aerospace - Defense industry and the S&P 500’s decline of 2.3% and growth of 11.8%, respectively. In comparison, the company’s peers, Textron Inc. TXT and RTX Corporation RTX have decreased 6.6% and gained 9.7%, respectively, in the same period. Image Source: Zacks Investment Research HWM is trading at a forward 12-month price-to-earnings (P/E) ratio of 51.67X, much higher than the industry average of 34.53X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. Notably, Textron and RTX Corp. are currently trading at 12.76X and 28.9X, respectively. Image Source: Zacks Investment Research Howmet Aerospace is well-positioned for long-term growth, supported by its diversified portfolio and strong demand across the commercial aerospace and defense markets. The House of Representatives passed the fiscal year 2026 Defense Appropriations Act in July 2025, providing a total discretionary allocation of $831.5 billion. The expanded defense budget is expected to create additional contract opportunities for Howmet Aerospace, supporting growth in its defense aerospace business and boosting its top line.However, persistent weakness in the commercial transportation market is likely to remain a near-term headwind. Additionally, Howmet Aerospace's premium valuation may limit further upside and warrants a cautious stance from investors. Strength across the commercial and defense aerospace markets, supported by solid aircraft build rates, strong engine spares demand and elevated defense spending, is expected to drive Howmet Aerospace's growth. Despite its premium valuation, strong growth prospects make the stock worth considering. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

L3Harris Technologies, Inc. LHX reported second-quarter 2026 earnings (from continuing operations) of $3.13 per share, which outpaced the Zacks Consensus Estimate of $2.80 by 11.8%. The bottom line also increased 12.6% from the year-ago quarter’s $2.78. L3Harris’ revenues totaled $5.88 billion, which topped the Zacks Consensus Estimate of $5.79 billion by 1.5%. The top line also improved 8.4% from the year-ago quarter’s $5.43 billion.The year-over-year increase in the top line was driven by growth across all segments, reflecting new program ramp-up and strong execution against a record backlog. L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote Space & Mission Systems revenues increased 7% to $2.97 billion. The segment’s operating income edged up to $290 million from $289 million.The operating margin declined 60 basis points to 9.8%. Improved program execution and a $23 million net gain from segment investments were outweighed by the absence of a $75 million asset-sale gain recognized in the prior-year quarter.Communications & Spectrum Dominance revenues advanced 4% to $1.94 billion. Segment operating income climbed 14% to $522 million.The operating margin expanded 230 basis points to 26.9%. Higher international volumes and a $16 million net segment investment gain supported profitability. Missile Solutions revenues rose 14% to $1.05 billion. Operating income increased to $130 million from $116 million. However, the operating margin contracted 20 basis points to 12.3% because the year-ago quarter included a favorable contract resolution. As of July 3, 2026, L3Harris had $1.52 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026.The long-term debt as of the same date was $9.18 billion compared with $10.44 billion as of Jan. 2, 2026.The net cash provided by operating activities was $784 million during the first six months of 2026 compared with $598 million in the prior-year period. L3Harris raised its 2026 revenue outlook to $23.2-$23.7 billion from $23-$23.5 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.55 billion, which is higher than the midpoint of the company’s guided range.LHX now expects earnings of $11.80-$12 per share, up from its previous projection of $11.40-$11.60. The Zacks Consensus for 2026 earnings is pegged at $11.54 per share, which is lower than the company’s guided range.It continues to anticipate adjusted free cash flow of $3 billion and $3.6 billion in operating cash flow.Space & Mission Systems revenues are projected at nearly $11.7 billion, above the prior estimate of $11.5 billion. Communications & Spectrum Dominance revenues are expected to be about $8 billion, while Missile Solutions revenues are forecast at roughly $4.1 billion. L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Besides this second quarter, I had the chance to cover Morgan Stanley's note on RTX in April after their impressive Q1. Morgan Stanley cut RTX's price target to $220 but maintained an Overweight rating, viewing the post-earnings dip as a "buying opportunity."Fast forward to this Q2 coverage: RTX Corp. (RTX) remains one of the most durable demand backdrops in aerospace and defense, executing well enough to continue raising its guidance. July 23 delivered the same script. In fact, bigger. RTX reported Q2 2026 results on July 23, sending shares up 7.3% while the S&P 500 fell 1.2%, marking one of the sharpest single-day outperformances for a company of this scale. Morgan Stanley reviewed the results in a note shared with me at TheStreet, raised its price target to $240 from $220, and reiterated its Overweight rating. RTX trades at $215 as of this report, according to Yahoo Finance. Meaning the $240 target implies roughly 12% upside from current levels. Morgan Stanley’s note's framing was: "Stronger for Longer Across Commercial Aerospace and Defense." Also Read: Raytheon Technologies Corporation (RTX) Latest News and Stories The headline numbers from RTX's July 23 earnings release were broadly strong across all three segments. Sales reached $24.7 billion, up 14% year-over-year (YOY) and 16% organically. Adjusted EPS was $1.89, up 21% year over year. Free cash flow of $2.9 billion. Company backlog of $289 billion, up 22% year over year, including $170 billion commercial and $119 billion defense. Source: RTX Q2 2026 Results Full-year 2026 guidance was also raised across every meaningful metric. Adjusted sales guidance was raised to $ 95 to $ 96 billion, up from $92.5 to $93.5 billion. Organic sales growth guidance was raised to 8% to 9% from 5% to 6%. Adjusted EPS guidance was lifted to $7.10 to $7.25, up from $6.70 to $6.90. Free cash flow guidance was raised to $8.50 to $8.75 billion, up from $8.25 to $8.75 billion Source: RTX Q2 2026 Results "Our backlog is up 22% year-over-year," said RTX Chairman and CEO Chris Calio in the earnings release. "RTX is exceptionally well positioned to drive continued growth." In both notes shared with me at TheStreet (Q1 and Q2 notes), Morgan Stanley identifies Raytheon as the largest source of incremental earnings upside. The numbers behind that conclusion are specific. Raytheon's backlog grew approximately 16% sequentially in Q2 to $86 billion, producing a 2.4x book-to-bill ratio. International awards more than doubled in the first half of 2026 to over $10 billion. International customers now represent approximately 48% of Raytheon's backlog, according to the note. More Wall Street: Wall Street sends strong 4-word verdict on the stock market Wall Street’s $200 billion IPO wave threatens sell-off Wall Street flees software plays for triple-digit chipmaker boom Critically, RTX's five missile defense framework agreements are not yet included in that backlog figure, according to Morgan Stanley's note. When those agreements convert to definitive contracts, they represent a meaningful source of incremental multi-year revenue and margin upside that is not currently visible in consensus estimates. Related: Morgan Stanley adjusts RTX price target after earnings The firm described this as demand concentrated in mature programs with improving material receipts and favorable international economics. This is also a story that extends well beyond 2026. Approximately 75% of Raytheon's portfolio is in air and missile defense products, according to Morgan Stanley's analysis. In the current geopolitical environment, that is precisely the product mix that drives the sustained international demand the firm expects. Beyond the Raytheon defense story, two operational improvements give Morgan Stanley confidence that the RTX earnings trajectory is durable into 2027 and 2028. At Pratt & Whitney, the Geared Turbofan engine issue that has been the program's most persistent operational challenge is improving measurably. PW1100 aircraft on the ground levels declined 25% year-to-date. Maintenance, repair, and overhaul (MRO) output increased by more than 40%. Turnaround times improved by 23%. Commercial aftermarket sales grew 25%, according to the Q2 earnings release and Morgan Stanley's analysis. Related: Morgan Stanley sees a troubling S&P 500 repeat The aircraft-on-ground (AOG) improvement is the single most important data point for Pratt's medium-term earnings power. At Collins Aerospace, structural cost-reduction initiatives are expected to drive margin expansion toward 19% to 20% over time from the current approximately 17% range.  Higher OE production volume combined with those cost actions creates a clear earnings bridge without requiring any additional demand assumption. Morgan Stanley raised its 2026 adjusted EPS estimate to $7.25 from $6.90, and its 2027 and 2028 estimates to $7.85 and $8.50, respectively, according to the note. The $240 price target is based on approximately 32 times 2027 free cash flow per share, in line with large-cap commercial aerospace peers and representing a modest discount to GE Aerospace (GE). RTX is up 18.25% year-to-date and 39.18% over the past year, according to Yahoo Finance. For a company generating $2.9 billion in quarterly free cash flow with a $289 billion backlog, a record Raytheon order environment, and improving execution across all three segments, Morgan Stanley's 4.3x risk-reward ratio makes the case for staying long. Related: Morgan Stanley sends strong verdict on memory stocks This story was originally published by TheStreet on Jul 30, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

General Dynamics Corporation GD reported second-quarter 2026 earnings of $4.24 per share, beating the Zacks Consensus Estimate of $3.95 by 7.3%. The bottom line increased 13.4% from $3.74 in the year-ago quarter, reflecting higher operating earnings and lower net interest expense. Total Revenues of GD Revenues of $14.09 billion surpassed the consensus mark of $13.49 billion by 4.5% and rose 8.1% year over year. Growth across all four segments, led by Aerospace and Marine Systems, supported the top line. General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote Aerospace revenues increased 15.1% year over year to $3.53 billion. Operating earnings surged 26.6% to $510 million. The operating margin expanded 130 basis points to 14.5%.Marine Systems revenues advanced 10.4% to $4.66 billion. Operating earnings increased 17.5% to $342 million. The segment’s operating margin improved 40 basis points to 7.3%.Combat Systems revenues were $2.29 billion, up 0.3% from the prior-year quarter. However, operating earnings declined 1.9% to $318 million, while the operating margin contracted 30 basis points to 13.9%.Technologies revenues increased 4.1% year over year to $3.62 billion. Operating earnings improved 2.1% to $339 million. The operating margin declined 20 basis points to 9.4%. Operating earnings totaled $1.46 billion, up 11.9% from the year-ago quarter’s $1.31 billion.Operating costs and expenses increased 7.7% year over year to $12.63 billion.Interest expenses decreased 44.3% year over year to $49 million. General Dynamics recorded a total backlog of $186.9 billion. This includes a backlog of $136.5 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options of $50.4 billion. As of July 5, 2026, cash and cash equivalents totaled $4.33 billion compared with $2.33 billion as of Dec. 31, 2025.The long-term debt as of the same date was $6.26 billion compared with the 2025-end debt level of $7.01 billion.During the first six months of 2026, cash generated by operating activities totaled $4.04 billion compared with $1.45 billion in the year-ago period. GD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported GAAP earnings of $1.42 per share compared with $1.35 a year ago. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Textron Inc. Price, Consensus and EPS Surprise Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote Textron Aviation: Revenues from this segment increased 1% year over year to $1.5 billion. This was primarily due to higher pricing, partially offset by lower volume and mix.The segment delivered 40 jets, down from 49 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 34 in the first quarter of 2025.Order backlog at the end of the reported quarter totaled $8 billion.Bell: Revenues from this segment amounted to $1.1 billion, up 6% from the year-ago quarter’s registered number. This was driven by a $47 million increase in military revenues, primarily reflecting higher production volumes for the H-1 program and the MV-75 program.Bell delivered 36 commercial helicopters compared with 32 in the prior-year first quarter.Its order backlog at the end of the quarter totaled $7.5 billion.Textron Systems: This segment’s revenues amounted to $347 million, up $23 million from the prior-year level.Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.Industrial: Revenues from this segment increased $9 million to $848 million.Finance: This segment’s revenues amounted to $14 compared with $15 million in the year-ago quarter. During the quarter, the company initiated a sale process for the Industrial segment. As of July 4, 2026, cash and cash equivalents totaled $1.44 billion compared with $1.94 billion as of Jan. 3, 2026.Net cash used in operating activities during the first six months of 2026 amounted to $128 million compared with $281 million in the year-ago period.Capital expenditures amounted to $95 million in the second quarter compared with $78 million in the year-ago quarter.The long-term debt totaled $3.11 billion as of July 4, 2026, compared with $3.53 billion as of Jan. 3, 2026. The company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.60 per share, which is the high end of the company’s guided range. Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56. RTX’s revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Backlog climbed 22% to $289 billion.Lockheed Martin Corporation LMT reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.LMT’s net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line improved 10.5% from $18.16 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s second-quarter sales of $10.88 billion beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Textron Inc. (TXT) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. RTX stock has moved sharply higher over the past few years, yet current checks suggest it now trades close to what a Discounted Cash Flow (DCF) based intrinsic value estimate and market multiples would consider a fair price rather than an obvious bargain. The share price has returned 181.5% over 5 years, which means anyone looking at RTX today is evaluating a company that has already seen a strong re rating. Recent contract wins and a record order backlog can support expectations for future cash flows, while issues around tariffs and engine related litigation risk may affect how much investors are willing to pay for that growth. The company scores 4 out of 6 on valuation checks, which points to a mixed picture rather than pricing that is clearly cheap or clearly expensive. For investors, the debate is whether RTX's recent performance and backlog justify paying a fair price today or whether patience is warranted for a better entry point. RTX delivered 42.2% returns over the last year. See how this stacks up to the rest of the Aerospace & Defense industry. The Discounted Cash Flow (DCF) model values RTX based on the cash the business is expected to generate for shareholders. RTX is currently producing about $10.6b of free cash flow over the latest twelve months, and the DCF assumes these cash flows continue to grow rather than shrink over time. On those assumptions, the DCF points to an estimated intrinsic value of about $232 per share. That is close to the current price, with only a 5.8% implied discount, so RTX screens as roughly fairly valued on cash flows instead of clearly cheap or expensive. The recent guidance raise after a strong second quarter helps explain why the market is already pricing RTX near what its projected cash flows support. Putting it together, RTX currently appears roughly fairly valued based on this DCF assessment. RTX is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for RTX. The P/E ratio is usually a useful way to judge RTX because it is a mature, profitable business where earnings matter to most investors. RTX trades on a P/E of 38.0x, which is slightly below the aerospace and defense industry average of about 40.0x and well below the peer group average of 54.0x. That puts RTX at a discount to many large peers on earnings, even after a strong run in the share price. The fair P/E for RTX, based on a model that factors in its size, margins, industry and risk profile, is 38.3x. The current multiple sits very close to that level, which suggests the market is already pricing in the company’s current earnings power and order backlog without a clear premium or discount. For you as an investor, the P/E analysis broadly aligns with the DCF work, indicating RTX stock that is neither obviously cheap nor stretched on earnings today. On the P/E multiple, RTX appears roughly fairly valued, with its current pricing sitting close to what the earnings-based model implies. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for RTX pick up where this valuation puzzle leaves off and explain which potential future paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than today’s price. Each narrative links its number to a specific view of how RTX's growth prospects, profitability and risks could change over time, which you can revisit as new information on the company emerges on the Community page. If you have a clear, number driven view on whether RTX's stronger guidance and record backlog really support today's valuation, this is a chance to put that thesis into a Narrative and see how it plays out as new results and contracts arrive. Share your Narrative on RTX stock so other investors can see your case, compare it with their own, and watch how it holds up as fresh data on orders, margins and cash flows comes through. Do you think there's more to the story for RTX? Head over to our Community to see what others are saying! RTX now screens as about right on both the Discounted Cash Flow (DCF) intrinsic value estimate and its P/E multiple, so the easy value case has largely played out for now. The valuation checks lean toward a mixed but reasonable picture rather than a clear bargain or obvious excess. What really drives the debate from here is whether RTX can keep turning its order backlog into durable cash flows while managing tariffs and engine related litigation risk. That execution question, more than the current valuation markers, is likely to separate bullish and cautious views on RTX stock. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RTX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]