RTX Corporation Stock: Shares Soar 7.67% After Better-Than-Expected Quarterly Results
The aerospace and defense group's stock had an exceptional session on Tuesday, October 21, bringing its weekly performance to over 8.5%. This significant increase occurred while the S&P 500 index modestly rose by 0.36%, indicating a momentum specific to the stock rather than a generalized market movement.
Impressive Single Session Surge
RTX Corporation closed at $173.04 on October 21, marking a rise of 7.67% for the session. Trading was vigorous with 12.27 million shares exchanged, representing 0.92% of the company's market capitalization. This capital turnover reflects a marked interest from market participants in the stock during this session. Over a week, the stock now shows a gain of 8.56%, a performance largely concentrated on the day of October 21. In the longer term, the stock has appreciated by 37.44% over the past year, significantly outperforming the S&P 500 index, which has risen by 18.33% over the same period. This annual outperformance positions RTX among the best-performing American industrial stocks since October 2024.
Third Quarter 2025 Results Drive Momentum
The release of the third-quarter 2025 results on Tuesday morning explains the magnitude of the movement. The group unveiled a 12% year-on-year increase in sales to $22.48 billion, surpassing estimates that had projected $21.31 billion. Adjusted earnings per share stood at $1.70, significantly above the consensus of $1.41. Free cash flow reached $4.03 billion for the quarter. The order book now stands at $251 billion, split between $148 billion for commercial and $103 billion for defense. The company recorded $37 billion in new orders during the past three months, fueling visibility for upcoming fiscal years. Management highlighted strong global demand for its Pratt & Whitney aircraft engines and defense products.
Upward Revision of Annual Forecasts
Based on these performances, RTX has raised its annual forecasts. The group now anticipates adjusted earnings per share between $6.10 and $6.20 for 2025, up from a previous range of $5.80 to $5.95. Adjusted sales are expected to be between $86.5 and $87 billion, an increase from the earlier forecast of $84.75 to $85.5 billion. These upward revisions reflect the business momentum of the group across its two main activity segments. The forecasts for free cash flow, ranging between $7 and $7.5 billion, have been maintained. During the quarter, RTX returned $900 million to its shareholders and repaid $2.9 billion in debt, while finalizing the divestiture of Collins' flight activation and control activity.
