Textron (NYSE:TXT) Posts Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Key Points

• Textron beat Q1 expectations with $1.45 EPS (vs. $1.30 consensus) and revenue of $3.7 billion, up ~12% year‑over‑year, and updated FY‑2026 guidance to a $6.40–$6.60 EPS range.
• The company announced plans to separate its Industrial segment (sale or tax‑free spinoff) within 12–18 months to form a focused aerospace & defense "New Textron" with roughly $12 billion in revenue.
• Management flagged near‑term operational pressures—manufacturing cash flow used $228 million pre‑pension and Bell segment profit fell $18 million YoY—creating execution risk that could temper upside from the strategic split and guidance.

Textron (NYSE:TXT - Get Free Report) announced its quarterly earnings results on Thursday. The aerospace company reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.15, FiscalAI reports. The business had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.50 billion. Textron had a return on equity of 14.63% and a net margin of 6.22%.The business's revenue was up 11.8% on a year-over-year basis. During the same quarter last year, the business posted $1.28 EPS. Textron updated its FY 2026 guidance to 6.400-6.600 EPS.

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

• Textron reported a strong Q1 with $3.7 billion revenue (+12%), segment profit of $320 million (+10%) and adjusted EPS of $1.45 (+13%), driven by higher deliveries, 10% aftermarket growth and a company backlog supporting continued demand.
• The company announced plans to separate the industrial segment from its A&D businesses—targeting completion in 12–18 months and exploring sale or a tax-free spin-off—positioning "New Textron" as a pure‑play A&D with ~ $12B revenue and improved growth and margin profile.
• Bell’s MV-75 Cheyenne program is advancing toward prototype deliveries (all CDRs done except weapon-system CDR), supported by a defense FYDP showing escalating RDT&E and procurement funding and a potential multi‑decade production run.
• Manufacturing cash flow before pension contributions used $228 million in Q1 (worse than prior year), and Bell segment profit fell $18 million YoY—pressures management attributes to program mix, lower commercial helicopter volume and near‑term supply/efficiency headwinds.
• Industrial (Kautex and Textron Specialized Vehicles) is a $3B business with growth initiatives (EV battery enclosures, hybrid fuel tanks, Allegro) and is being evaluated as a combined or separated asset; company says stranded costs would be minimal but the final path remains undecided.

Textron Price Performance

Shares of TXT stock traded up $6.05 during mid-day trading on Thursday, hitting $95.83. 3,708,555 shares of the stock traded hands, compared to its average volume of 1,678,587. Textron has a twelve month low of $69.46 and a twelve month high of $101.57. The firm has a market cap of $16.68 billion, a price-to-earnings ratio of 18.75, a price-to-earnings-growth ratio of 1.33 and a beta of 0.97. The company's 50-day simple moving average is $92.07 and its 200-day simple moving average is $88.89. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.99 and a current ratio of 1.97.

Textron Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $0.02 per share. The ex-dividend date is Friday, June 12th. This represents a $0.08 annualized dividend and a dividend yield of 0.1%. Textron's dividend payout ratio (DPR) is 1.57%.

Insider Activity at Textron

In other news, Chairman Scott C. Donnelly sold 219,619 shares of the firm's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $98.41, for a total transaction of $21,612,705.79. Following the completion of the sale, the chairman directly owned 742,418 shares of the company's stock, valued at $73,061,355.38. This trade represents a 22.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Mark S. Bamford sold 19,808 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $97.96, for a total value of $1,940,391.68. Following the sale, the vice president directly owned 7,872 shares of the company's stock, valued at approximately $771,141.12. This represents a 71.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 304,473 shares of company stock worth $29,976,723 in the last quarter. Company insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Textron

Large investors have recently modified their holdings of the stock. Wilkerson Advisory Group LLC bought a new stake in shares of Textron during the 4th quarter worth $26,000. Strive Financial Group LLC bought a new stake in shares of Textron during the 4th quarter worth $31,000. Parkside Financial Bank & Trust boosted its stake in shares of Textron by 22.3% during the 4th quarter. Parkside Financial Bank & Trust now owns 653 shares of the aerospace company's stock worth $57,000 after acquiring an additional 119 shares in the last quarter. Lazard Asset Management LLC bought a new stake in shares of Textron during the 2nd quarter worth $62,000. Finally, Transamerica Financial Advisors LLC boosted its stake in shares of Textron by 167.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 913 shares of the aerospace company's stock worth $80,000 after acquiring an additional 571 shares in the last quarter. 86.03% of the stock is owned by institutional investors.

More Textron News

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q1 results beat expectations — Textron reported adjusted EPS of $1.45 vs. consensus ~$1.30 and revenue of ~$3.7B (up ~12% y/y), driven by aviation demand and strong jet deliveries; this underpins improved profitability and topline momentum. Textron Reports First Quarter 2026 Results
• Positive Sentiment: FY-2026 EPS guidance of $6.40–$6.60 (consensus ~6.49) confirms management’s outlook and supports multiple-quarters of earnings power, reducing near-term forecast uncertainty. Textron Reports First Quarter 2026 Results
• Positive Sentiment: Strategic move to separate the Industrial segment — management announced intent to explore sale or tax-free spinoff to create a pure-play aerospace & defense company, a change investors often reward because it can unlock valuation and focus capital allocation. Textron Announces Intent to Separate its Industrial Segment
• Positive Sentiment: Analyst upgrade — TD Cowen moved Textron from “hold” to “buy,” likely amplifying demand from institutional and retail investors. (Upgrade reported 4/30)
• Positive Sentiment: Defense / program news — Bell (a Textron company) was selected by Near Earth Autonomy to provide the Bell 505 airframe for the U.S. Marine Corps MARV‑EL program, highlighting contract wins and non‑commercial growth avenues. Bell Selected by Near Earth Autonomy to Provide Bell 505 Airframe
• Neutral Sentiment: Quarterly dividend declared ($0.02/share) — a token return of capital but too small to materially change investor income profiles. Textron Declares Quarterly Dividend
• Neutral Sentiment: Separation execution risk & timing — while the strategic split is viewed positively, the process (sale vs. tax-free spinoff) carries execution uncertainty, potential one-time costs and a timetable that could introduce volatility. Coverage of the move is in the WSJ. Textron to Separate Industrial Arm
• Negative Sentiment: Guidance in-line with consensus — the FY range essentially matches Street expectations, meaning upside from guidance alone is limited; further stock gains will likely depend on execution, segment separation details, and continued delivery momentum. Textron Q1 Earnings: Key Metrics Versus Estimates

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on TXT. Citigroup raised their price target on Textron from $97.00 to $99.00 and gave the stock a "neutral" rating in a report on Thursday, April 2nd. TD Cowen raised Textron from a "hold" rating to a "buy" rating in a report on Thursday. Susquehanna restated a "positive" rating and issued a $110.00 target price on shares of Textron in a research report on Thursday, January 15th. JPMorgan Chase & Co. raised their target price on Textron from $88.00 to $90.00 and gave the company a "neutral" rating in a research report on Thursday, January 29th. Finally, UBS Group raised their target price on Textron from $89.00 to $99.00 and gave the company a "neutral" rating in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $98.18.

Textron Company Profile

Textron Inc is a global, multi-industry manufacturing company headquartered in Providence, Rhode Island. The company designs, manufactures and services a diverse range of products for the aerospace, defense and industrial markets. Textron operates through four primary business segments—Textron Aviation, Bell, Textron Systems and Industrial—each of which serves customers around the world.

Textron Aviation is known for its Cessna and Beechcraft branded business jets and turboprop aircraft, offering models that range from light jets and turboprops to larger cabin aircraft designed for corporate and charter use.

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