Raised Dividend and Upbeat Guidance Might Change the Case for Investing in RTX (RTX)

• RTX announced that its board declared a quarterly cash dividend of 68 cents per share, payable December 11, 2025, to shareholders of record as of November 21, 2025.
• Alongside this, RTX reported third-quarter adjusted EPS and revenue ahead of forecasts and raised its full-year guidance, reflecting broad-based demand in defense and commercial aerospace.
• We'll explore how RTX's raised guidance on the back of strong defense and aerospace demand may influence its investment outlook.

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RTX Investment Narrative Recap

To be a shareholder in RTX, you need to believe in sustained global demand for both defense and commercial aerospace, which underpins the company’s future revenue streams. The company’s raised guidance following strong Q3 results points to momentum from these sectors, but this doesn’t materially reduce the near-term risk of jet engine reliability and warranty costs, particularly at Pratt & Whitney, an area investors continue to watch closely.

The 68 cent quarterly dividend just declared is a continuation of RTX’s long dividend-paying history and demonstrates an ongoing commitment to shareholder returns. Nonetheless, while the recent payout underscores financial stability, the key catalyst remains execution on the $236 billion backlog and ongoing improvements in supply chain efficiency to unlock further profitability and margin strength.

Yet, for investors, it is important not to overlook the persistent concerns around cost overruns in aftermarket engine programs, especially as...

Read the full narrative on RTX (it's free!)

RTX's narrative projects $97.7 billion revenue and $8.9 billion earnings by 2028. This requires 5.3% yearly revenue growth and a $2.8 billion earnings increase from $6.1 billion today.

Uncover how RTX's forecasts yield a $192.06 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community currently estimate RTX’s fair value from as low as US$131.81 to as high as US$192.06. Many expect continued growth driven by order backlog and robust aerospace demand, but ongoing engine reliability risks could still affect margin expansion and long-term performance. Explore how your assessment compares to these diverse viewpoints.

Explore 8 other fair value estimates on RTX - why the stock might be worth 25% less than the current price!

Build Your Own RTX Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your RTX research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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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.

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