Textron (NYSE:TXT) Issues Quarterly Earnings Results

Key Points

• Textron beat quarterly earnings expectations: Adjusted EPS was $1.76 versus the $1.43 consensus, while revenue rose 4.1% year over year to $3.75 billion, broadly matching estimates.
• Management raised its full-year outlook for adjusted EPS to $6.55–$6.65 and manufacturing cash flow to $800–$900 million, citing lower capital expenditures and strong Aviation customer deposits.
• Textron Aviation and Textron Systems delivered strong growth, but Bell revenue fell 9% and its MV-75 program faces funding and timing risks; analysts maintain a consensus “Hold” rating.

Textron (NYSE:TXT - Get Free Report) announced its quarterly earnings results on Thursday. The aerospace company reported $1.76 EPS for the quarter, beating the consensus estimate of $1.43 by $0.33, FiscalAI reports. Textron had a net margin of 6.12% and a return on equity of 14.30%. The company had revenue of $3.75 billion for the quarter, compared to analyst estimates of $3.77 billion. During the same period in the prior year, the firm posted $1.55 earnings per share. The firm's revenue was up 4.1% on a year-over-year basis.

Here are the key takeaways from Textron's conference call:

• Textron raised its full-year outlook, increasing adjusted EPS guidance to $6.55–$6.65 from $6.40–$6.60 and manufacturing cash flow guidance to $800–$900 million from $700–$800 million. The cash-flow increase is primarily driven by approximately $100 million in lower expected capital expenditures and strong Aviation customer deposits.
• Textron Aviation revenue grew 14% year over year to $1.7 billion, supported by higher jet deliveries, aftermarket revenue growth of 10%, and the strongest third-quarter order activity since 2023. Management said demand remains broad-based and is investing in tooling, automation, capacity, and supplier diversification to improve production and pursue roughly 200 annual deliveries across jets, turboprops, and helicopters.
• Textron Systems delivered 16% revenue growth and a $230 million contract modification for two additional Ship-to-Shore Connector craft, which has reached full-rate production. Growth is also supported by Ukraine-bound MSFV vehicles, the ARV and XM30 programs, and continued strength at ATAC.
• Bell made operational progress on the MV-75 program after Congress approved a $350 million fiscal 2026 funding request, with approximately $300 million obligated during the quarter. However, the program remains exposed to continuing-resolution and appropriations timing, and the expected LRIP award could be delayed into 2027, potentially increasing the anticipated negative accounting impact to $110–$150 million.
• Textron remains on track for the previously announced 12-to-18-month separation or spin of its Industrial segment, although management provided no new milestone dates. The company also indicated it is evaluating acquisitions, including potentially transformational aerospace and defense opportunities, but stressed that valuation and strategic fit remain important constraints.

Textron Stock Performance

Shares of NYSE:TXT traded up $8.93 during trading on Thursday, reaching $87.25. The company had a trading volume of 2,673,897 shares, compared to its average volume of 1,636,590. Textron has a fifty-two week low of $71.87 and a fifty-two week high of $101.57. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.86 and a quick ratio of 0.85. The stock's fifty day moving average price is $78.52 and its 200 day moving average price is $88.39. The firm has a market capitalization of $15.01 billion, a price-to-earnings ratio of 16.43, a price-to-earnings-growth ratio of 1.11 and a beta of 0.91.

Textron Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 1st. Shareholders of record on Friday, December 11th will be paid a $0.02 dividend. This represents a $0.08 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Friday, December 11th. Textron's dividend payout ratio (DPR) is 1.51%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on TXT. UBS Group reaffirmed a "neutral" rating and set a $95.00 price objective on shares of Textron in a report on Wednesday, July 29th. Weiss Ratings cut Textron from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday. Wall Street Zen downgraded Textron from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Citigroup decreased their target price on Textron from $99.00 to $86.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Finally, Morgan Stanley decreased their target price on Textron from $98.00 to $86.00 and set an "equal weight" rating for the company in a research report on Friday, October 16th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Textron has a consensus rating of "Hold" and an average target price of $99.11.

Textron News Summary

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q3 earnings beat expectations: Adjusted earnings were $1.76 per share, versus the $1.43 analyst consensus and $1.55 a year earlier. Revenue rose 4.1% year over year to approximately $3.75 billion, broadly in line with estimates. Textron Q3 Earnings Beat Estimates
• Positive Sentiment: Higher full-year outlook: Textron raised its 2026 adjusted EPS forecast to $6.55–$6.65 and increased its manufacturing cash flow before pension contributions outlook to $800 million–$900 million. Textron Reports Third Quarter 2026 Results
• Positive Sentiment: Textron Aviation was a key growth driver: Segment revenue increased 14% to $1.68 billion, supported by 51 Citation jet deliveries versus 42 in the prior-year quarter. Why Textron Stock Popped
• Positive Sentiment: Defense-program visibility improved: Congressional approval related to the U.S. Army’s ATR request and the MV-75 Cheyenne program may support future defense revenue and funding progress. Textron also received additional Bell 407GXi orders for air-medical operations. Textron Q3 Earnings and MV-75 Funding
• Neutral Sentiment: Textron repurchased approximately $239 million of shares during the quarter and declared its regular $0.02 quarterly dividend. Recent insider trading was mixed, with one insider purchase and one sale, while institutional positioning was also divided.
• Negative Sentiment: Bell revenue declined 9% to $933 million, partially offsetting gains in Aviation and Textron Systems, whose revenue increased 16% to $360 million.

Textron Company Profile

Textron Inc NYSE: TXT is a diversified industrial company that develops and manufactures aircraft, helicopters, specialized vehicles, defense systems and other industrial products. Founded in 1923 by Royal Little, the company has grown through the development and acquisition of businesses serving commercial, government and consumer markets.

Textron Aviation produces business jets, turboprop aircraft and general aviation aircraft under the Cessna and Beechcraft brands. Bell designs and manufactures military and commercial helicopters, tiltrotor aircraft and related support services.

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