RTX Positioned for 2027 Growth as Missile Agreements, Pratt Margins Improve, RBC Says, RBC Says

11:40 AM EDT, 10/21/2026 (MT Newswires) -- RTX (RTX) is well positioned heading into 2027, supported by framework missile agreements, free cash flow potential, and improving margins at Pratt & Whitney, RBC Capital Markets said Tuesday in a report. RTX has about $74 billion in framework agreement bookings, which could carry better-than-expected margins and support future segment profitability, with a more pronounced benefit expected in 2028, the report said. Progress on Pratt & Whitney's GTF-A and HS+ engine upgrades is expected to support margins, while improvements at Collins Aerospace may provide further upside, the report said. RTX's Q3 margins were strong across its businesses, even excluding a $250 million tariff-related benefit, RBC said. RTX raised its 2026 adjusted sales outlook to $97 billion to $97.5 billion, implying 10% to 11% organic growth, and increased its adjusted EPS forecast to $7.65 to $7.75 from $7.18. Free cash flow guidance rose to $9 billion to $9.2 billion from $8.5 billion, driven primarily by tariff-related cash receipts. RBC maintained its outperform rating on RTX stock with a $235 price target. Price: 191.77, Change: -1.57, Percent Change: -0.81