RTX Corporation (NYSE:RTX) shares plunged 9.81% to $113.75 on April 22

RTX Corporation (NYSE:RTX) shares plunged 9.81% to $113.75 on April 22, following the release of first-quarter 2025 results.

RTX Corporation (NYSE:RTX) shares slumped 9.81% on Saturday, April 22, following first-quarter 2025 results that came in better than expected. The drop came despite strong earnings and sales performance, as investors focused on growing concerns about tariffs and global trade pressures.

RTX is set to report its next earnings between July 21 and July 25, 2025.

What Happened: RTX adjusted sales for the quarter came in at $20.3 billion, marking a 5% year-over-year increase and 8% organic growth. Segment margins also saw an improvement of 120 bps, and segment operating profit reached $2.5 billion, up 18% from last year.

Adjusted earnings per share reached $1.47, showing a 10% increase. GAAP EPS from continuing operations came in at $1.14.

Commercial aftermarket sales soared by 21%, while commercial OE and defense sales rose by 3% and 4%, respectively.

The company reported $792 million in free cash flow during the quarter and returned $890 million to shareholders, primarily via dividends. RTX also holds a $217 billion backlog, up 8% year-over-year, highlighting long-term demand visibility.

Segment Highlights: Collins Aerospace reported $7.2 billion in sales, showing a 9% increase organically. Pratt & Whitney delivered $7.4 billion in revenue, indicating a 14% rise both adjusted and organically.

Raytheon segment sales were affected by the divestiture of the Cybersecurity business, leading to a 5% drop in adjusted sales. However, organic growth in the segment stood at 2%. The book-to-bill ratio for the quarter was 0.70, and the rolling 12-month figure was 1.35, indicating a healthy pipeline.

Key Insight: While RTX exceeded earnings expectations and reported strength in sales and segment performance, investors reacted negatively to warnings about potential tariff impacts.

RTX estimated that up to $850 million in sales could be affected by tariffs, an aspect that has not been baked into the company’s outlook for 2025. This lack of specificity from RTX sparked concerns among investors regarding future margins and earnings consistency.

Moreover, management highlighted risks to the company’s operations and delivery schedules due to supply chain disruptions linked to global trade instability. These headwinds could pressure the company’s performance in the coming quarters.

Stock Performance: In the year to date, RTX shares have declined by 1.20%, still outperforming the S&P 500’s 10.10% drop. Over the past year, RTX has returned 14.46%, and over five years, the stock has delivered a strong 103.10% gain, outpacing the broader index.

With solid free cash flow of $5.37 billion over the trailing 12 months and moderate debt levels, RTX remains financially sound. However, the stock’s near-term trajectory could remain volatile as investors weigh trade uncertainties against long-term growth potential.

RTX’s performance reflects a solid business with strong execution, but global macroeconomic headwinds could pressure margins and limit upside in the coming quarters.