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JPMorgan Sees Clearer Growth Path for RTX Heading into 2026

RTX Corporation (NYSE:RTX) is included among the 20 Best Performing Dividend Stocks in 2025.

On December 19, JPMorgan analyst Seth Seifman raised the firm’s price target on RTX Corporation (NYSE:RTX) to $200 from $195 and kept an Overweight rating on the shares as part of its aerospace and defense outlook for 2026. The outlook for the sector remains mostly positive into 2026, the analyst said in a research note. In aerospace, JPMorgan expects strong demand and a gradual increase in supply to support “visible growth.” The defense picture is “more nuanced,” the firm added.

Operational momentum continues to show up in contracts. On December 2, RTX said it secured a $1.6 billion sustainment contract tied to its F135 engines, which power multiple variants of Lockheed Martin’s F-35 fighter jets. The work includes depot-level maintenance and repair, engineering support, and the replenishment of spare parts for US and international customers. Pratt & Whitney, RTX’s engine business, has now delivered more than 1,300 F135 engines to the U.S. and 20 allied nations. In August, the company also landed a separate $2.8 billion contract for F135 engine production, reinforcing the long runway tied to the program.

Financial performance has followed the same direction. In the third quarter of 2025, RTX Corporation (NYSE:RTX) raised its full-year adjusted earnings outlook to a range of $6.10 to $6.20, up from its prior guidance of $5.80 to $5.95. Adjusted sales expectations moved higher as well. The company lifted its forecast to $86.5 billion to $87 billion, compared with an earlier range of $84.75 billion to $85.5 billion.

Management pointed to its ability to manage tariff impacts and broader macro uncertainty as a positive signal for the business. Earlier in July, RTX had estimated a $500 million hit from tariff-related costs and reduced its outlook at the time, making the later revisions stand out.

RTX Corporation (NYSE:RTX) operates across aerospace and defense, supplying advanced systems and services to commercial, military, and government customers around the world.

While we acknowledge the potential of RTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RTX and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 14 Best Pharma Dividend Stocks to Buy in 2026 and 14 Best Dividend Aristocrats to Invest in Heading into 2026.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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