Raytheon Corp (RTX) reported strong free cash flow (FCF) for Q4 and 2025, projecting even stronger FCF for 2026. The stock is up over 2%, currently at $198.17. The company exceeded analysts’ revenue expectations and provided a positive FCF outlook. Raytheon’s FCF increase of 75% from last year and projections for 2026 indicate potential upside. If FCF reaches $8.75 billion, representing 9.4% of projected sales, the stock could rise by 32%. Long-dated in-the-money call options could offer significant returns. Analysts’ average target price is $202.83, but this may increase after reviewing Raytheon’s results.

Read more at Barchart: Raytheon’s Strong Free Cash Flow and FCF Margin Could Push RTX Stock Higher