RTX Corp's Strong Q1, Despite Stock Drop

0:00RTX Corp just dropped a killer first quarter for 2026, on April 22nd, with sales hitting $22.1 billion up. 9% organically, adjusted earnings per share jumped 21% to $1.78, operating cash flow reached $1.9 billion, and there, backlog swell to $271 billion. They even bumped up full-year guidance for sales in EPS, but the stock still tanked 4.4% that day. Investors shrugged off the beaten rays, fixating on potential headwinds in 2027, from spiking oil prices and global tensions cooling, commercial engine demand, management stayed cautious on aftermarket parts like upgrades, keeping the outlook tweaks modest despite the strong start across all segments. The reaction hit the whole sector hard, GE Aerospace plunge 5.6% on similar results, signaling a broad pullback as folks discount. Aerospace emit energy volatility and low visibility into next year.

1:02Morgan Stanley sees it differently, trimming their price target to $220 from $235, but sticking with. Overweight and calling RTX, their top aerospace pick. Its evaluation tweak based on 30x2027 free cash flow per share, trading at a 24% discount to GE with solid. Once upside, from a 109 billion backlog and budget, boosts not yet in guidance. That dip looks like a prime buying spot, with RTX's defense momentum, young engine fleet driving steady repairs, and multi-year growth levers all, holding strong despite the noise. We've been listening to Durham News today, AI-powered local news.