RTXNEUTRAL

Gross Margin

20.8%

Higher than 30% of Industrials sector peers

Updated 125h ago

Sector Performance

30th percentile

RTX

20.8%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the direct costs of making a product, is 20.8% for RTX.

That is below the sector median of 29.0%, placing RTX in the 30th percentile among its Industrials peers — meaning 70% of peers have a higher gross margin. Trend data is not available: the year-over-year change, quarter-over-quarter change, and last-eight-quarter trend are all marked N/A. Without any directional trend, the low level of gross margin alone signals a structural cost disadvantage relative to the sector, posing a risk if input costs rise or pricing power weakens. The absence of trend also removes any sign of improvement, making the margin story purely static. This metric directly contradicts the NEUTRAL verdict, as a bottom-third gross margin typically indicates weaker profitability and competitive positioning, which would normally warrant a more cautious stance.

Frequently Asked Questions

What does the Gross Margin tell investors about RTX?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RTX's Gross Margin compare to its sector?

RTX's Gross Margin of 20.8% compares to a Industrials sector median of 29.0%, placing it in the 30th percentile.

Who are RTX's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), CARR (23.3%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.