RTX Corporation ($RTX) Stock: Q3 2025 Earnings Beat with Raised Outlook and Strong Segment Growth

TLDR

• Q3 2025 sales rose 12% to $22.5B, beating expectations of $21.27B.
• Adjusted EPS grew 17% to $1.70, topping the $1.41 estimate.
• RTX raised full-year revenue and EPS outlooks for 2025.
• Backlog reached $251B, including $148B commercial and $103B defense.
• Stock surged to $174.33 after strong segment performance across all divisions.

RTX Corporation (NYSE: RTX), trading at $174.33 as of October 21, 2025, posted robust third-quarter earnings that surpassed Wall Street expectations.

RTX Corporation, RTX

The aerospace and defense leader reported sales of $22.5 billion, marking a 12% year-over-year increase and a 13% organic rise excluding divestitures.

Earnings per share came in at $1.41 on a GAAP basis, including adjustments for acquisition accounting and restructuring, while adjusted EPS was $1.70, a 17% increase from last year and $0.29 above analyst estimates.

Operating cash flow reached $4.6 billion, with free cash flow of $4.0 billion, highlighting strong operational efficiency and financial discipline.

RTX Corporation, $RTX, Q3-25. Results:

📊 Adj. EPS: $1.70 🟢
💰 Revenue: $22.5B 🟢
📈 Net Income: $1.9B
🔎 RTX delivered strong double-digit growth across all segments and raised its FY25 outlook for adjusted sales and EPS. pic.twitter.com/i7ukzL8xqV

— EarningsTime (@Earnings_Time) October 21, 2025

Segment Highlights

All three business segments contributed to RTX’s growth momentum.

• Collins Aerospace posted $7.6 billion in sales, up 8% year-over-year, supported by a 16% rise in commercial original equipment (OE), 13% growth in aftermarket, and a 6% increase in defense.
• Pratt & Whitney achieved $8.4 billion in revenue, a 16% year-over-year increase, benefiting from a 23% jump in commercial aftermarket and 15% growth in military sales.
• Raytheon reported $7.0 billion in sales, a 10% rise, fueled by strong demand in land and air defense systems, Patriot programs, and naval systems.

The company’s backlog reached $251 billion, split between $148 billion commercial and $103 billion defense, indicating healthy long-term demand across both sectors.

Strategic and Financial Initiatives

RTX continued to strengthen its balance sheet by returning $0.9 billion to shareholders and reducing debt by $2.9 billion during the quarter. The company also completed the divestiture of Collins’ actuation and flight control business, optimizing its portfolio for core growth areas.

CEO Chris Calio emphasized the company’s focus on execution and innovation, stating that RTX’s performance reflected “double-digit organic growth across all three segments” and “six consecutive quarters of margin expansion.” He added that RTX secured $37 billion in new awards, reinforcing its position as a key supplier in both commercial and defense markets.

Upgraded 2025 Outlook

Buoyed by strong Q3 results, RTX raised its full-year 2025 guidance. The company now expects:

• Adjusted sales between $86.5 billion and $87.0 billion, up from $84.75–$85.5 billion.
• Adjusted EPS of $6.10–$6.20, up from $5.80–$5.95.
• Free cash flow guidance reaffirmed at $7.0–$7.5 billion.

Market and Performance Overview

RTX stock has climbed 3.54% in the past three months and 28.03% over the last year, far outpacing the broader market. Year-to-date, RTX boasts a 53.06% return, outperforming the S&P 500’s 14.71%.

With record backlog, strong free cash flow, and improving segment margins, RTX remains well-positioned to deliver sustained growth through 2025 and beyond.

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