Shares of RTX Corp are under renewed investor focus this week as the company posted strong first-quarter results and received multiple analyst upgrades, despite ongoing concerns over rising tariff costs.
Analysts say the defense and aerospace giant remains well-positioned for long-term growth, with strong fundamentals and strategic investments expected to outweigh short-term volatility.
RTX Redefines its limitations as it exceeds Q1 earning expectations!
RTX reported adjusted earnings of $1.47 per share for Q1 2025, beating analyst estimates of $1.35. The company also surpassed revenue expectations, generating $20.3 billion compared to the forecasted $19.82 billion.
This marks a 5% year over year increase, underlining solid performance across its commercial aerospace and defense divisions.
The company’s success in the first quarter reinforces confidence in its core business segments, especially as demand continues to rise for both original equipment and aftermarket services.
Analysts Expect RTX to rise Even Further, staying Bullish.
While RTX’s strong earnings boosted investor confidence, the announcement of potential $850 million in tariff-related costs sparked concern across the market.
These tariffs, if extended, could total up to $1.1 billion annually, creating some short-term pressure on the stock.
However, analysts remain optimistic. UBS raised its price target for RTX to $138, up from $133, and maintained its “Buy” rating. Analyst Gavin Parsons emphasized that the company is capable of absorbing the impact of tariffs through cost-cutting initiatives and moderate pricing adjustments.
