Geopolitical developments continued to shape the defence sector backdrop in the period surrounding this report. A Red Sea pipeline attack earlier in the week disrupted Saudi Aramco's export network, with Bloomberg reporting that at least two European refining customers were informed of supply shortfalls [Brief - 2026-09-18]. Prior briefings noted the Strait of Hormuz closure remained active, with Iran's Supreme National Security Council maintaining that the waterway would stay closed pending unresolved conditions — a development that formed a persistent theme across defence and energy markets in the weeks prior [Brief - 2026-09-11].
RTX Corporation's trailing twelve-month revenue as of 30 June 2026 stood at $93.5 billion, representing year-over-year growth of 14.5%. Net income for the same period was $7.74 billion, producing a net margin of 8.28%. Operating margin was recorded at 11.21% and gross margin at 9.12%. Earnings per share grew 28.69% year-over-year. The company held $8.31 billion in cash against total debt of $41.31 billion. The price-to-earnings ratio stood at 34.15, with a reported market capitalisation of approximately $268 million at the filing date [SEC 10-Q - RTX - 2026-06-30].
Institutional ownership activity reflected notable divergence in the most recent 13F reporting period. AQR Capital added 44% to its existing RTX position, while Bridgewater opened a new position in the stock [SEC 13F - AQR Capital - Q2 2026] [SEC 13F - Bridgewater - Q2 2026]. Conversely, Citadel reduced its position by 14% and Millennium reduced its holding by 12% [SEC 13F - Citadel - Q2 2026] [SEC 13F - Millennium - Q2 2026]. These material changes across multiple large institutional filers were the primary trigger for this report.
The prevailing macro environment featured a 10-year US Treasury yield of 4.94% and a 2-year yield of 4.67%, producing a normal yield curve spread of 27 basis points [FRED DGS10] [FRED DGS2]. This rate configuration affects RTX's cost of carrying its $41.31 billion debt load and provides context for equity valuation multiples across the defence sector more broadly.