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Further Reading from MarketBeat Media
Why RTX Stock Is Surging in 2026—and Why It Might Not Be Done Yet
Authored by Thomas Hughes. Article Published: 1/28/2026.
What You Need to Know
- RTX’s beat-and-raise quarter reinforced confidence in commercial and defense demand across its major segments.
- A $260 billion backlog suggests strong multi-year visibility if execution stays on track.
- Shares could consolidate or retest support before a breakout, with institutional selling a potential headwind.
RTX (NYSE: RTX) shares are flying high in early 2026, supported by outperformance and strong capital returns. The defense and aerospace heavyweight could move even higher, as its 2026 guidance aligns with an ongoing upward trend.
Strength in the defense sector held through 2025 and into early 2026, reinforcing the view that the company may continue to beat expectations in upcoming quarters.
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RTX has benefited from rising defense spending, evidenced by a surge in backlog to over $260 billion — roughly three years of revenue based on 2026 guidance. If the company executes and delivers on those orders, it should outpace consensus forecasts.
RTX Improves Market Confidence With Beat-and-Raise Quarter
RTX reported a solid quarter on Jan. 27, 2026, driven by commercial demand and higher government spending. Net revenue was $24.24 billion, up 12.1% year-over-year and beating expectations by more than 670 basis points. Segment performance was led by Pratt & Whitney (+25%), followed by Raytheon (+7%) and Collins Aerospace (+3%). Organically, growth was roughly 14%; divestitures trimmed reported revenue but were intended to improve revenue quality and the margin outlook.
Margins were pressured and contracted, as expected, but the hit was smaller than feared.
Repositioning, operational improvements and revenue leverage helped sustain the balance sheet and keep capital returns to shareholders on track.
Importantly, adjusted earnings per share (EPS) topped estimates by about 540 basis points, while free cash flow — the cash available for buybacks and dividends — rose more than 100% to $3.2 billion.
Guidance was solid, but its midpoints largely matched analyst consensus, so the release offered little immediate catalyst for the stock.
Technically, RTX remains in an uptrend but could trade sideways or correct before attempting a new high. A pullback to $170–$180 would not necessarily violate the uptrend, though a break below that support could signal a deeper correction.
The Analyst Response Favors Higher Prices for RTX Stock
The initial analyst reaction to RTX’s 2026 outlook was favorable, citing effective strategy execution, a swelling backlog and momentum likely to carry through the year.
That commentary aligns with longer-term trends: firmer coverage and sentiment and a rising consensus price target. January updates point to roughly a 15% upside from the current level just under $200.
The all-time high set in early January is the key near-term resistance for traders. A decisive move to new highs would signal a continuation of the trend and imply upside of about $12 to $25 that could materialize quickly.
One key risk is institutional activity. Institutionsown roughly 85% of the stock and were net sellers in late 2025, a trend that continued into early 2026. Continued institutional selling would weigh on price action, mute upside and increase the likelihood of corrections.
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