RTXNEUTRAL

RTX Gross Margin Analysis

20.8%

Higher than 35% of Industrials sector peers

Updated 393h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps as profit after covering direct production costs, and RTX’s 20.8% means it retains about $0.21 per dollar of sales before other expenses.

Sector Performance

35th percentile

RTX

20.8%

Sector Median

28.9%

Sector Avg

846.3%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps as profit after covering direct production costs, and RTX’s 20.8% means it retains about $0.21 per dollar of sales before other expenses.

That figure sits below the sector median of 29.3%, placing RTX at the 32nd percentile among industrials peers, so the company is less efficient at controlling production costs than most competitors. Trend data are unavailable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, with the last eight quarters showing no direction. Because the margin is low relative to peers and no improvement appears in the record, the investment risk is elevated from a cost-structure perspective, while any opportunity would depend on future margin expansion that is not currently evidenced. This metric supports the overall NEUTRAL verdict, as the below-average level undercuts bullishness but does not alone signal a deterioration or outright loss.

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 28.9%, placing it in the 35th percentile.

Who are RTX's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (29.6%), BLDR (28.1%), SAVE (31.3%), AAL (26.0%), JOBY (22.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.