Textron (NYSE:TXT) Upgraded at TD Cowen

Key Points

• TD Cowen upgraded Textron from a "hold" to a "buy," reflecting growing analyst interest even as consensus ratings and price targets remain mixed.
• Q1 results beat expectations with adjusted EPS of $1.45 (vs. $1.30 consensus) and revenue of $3.70B (up 11.8% YoY), and management set FY2026 guidance of $6.40–$6.60 EPS.
• Textron announced an intent to separate its Industrial segment to become a purer aerospace and defense company, a strategic move that could unlock value but carries execution and timing risk.

Textron (NYSE:TXT - Get Free Report) was upgraded by equities research analysts at TD Cowen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Thursday.

Other equities research analysts have also issued reports about the company. UBS Group boosted their price objective on shares of Textron from $89.00 to $99.00 and gave the company a "neutral" rating in a research report on Thursday, January 15th. Wells Fargo & Company assumed coverage on shares of Textron in a research note on Wednesday, April 1st. They set an "equal weight" rating and a $92.00 price target for the company. Sanford C. Bernstein increased their price objective on shares of Textron from $94.00 to $108.00 and gave the stock a "market perform" rating in a research report on Thursday, February 19th. Morgan Stanley set a $92.00 price objective on shares of Textron in a research note on Thursday, January 29th. Finally, Wall Street Zen cut Textron from a "strong-buy" rating to a "buy" rating in a research note on Friday, January 23rd. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Textron has an average rating of "Hold" and a consensus price target of $98.18.

Textron Price Performance

Shares of NYSE TXT traded up $6.05 during midday trading on Thursday, reaching $95.83. 2,839,498 shares of the stock traded hands, compared to its average volume of 1,660,949. The company's 50 day moving average is $92.07 and its 200 day moving average is $88.89. Textron has a one year low of $69.46 and a one year high of $101.57. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.97 and a quick ratio of 0.99. The stock has a market capitalization of $16.68 billion, a PE ratio of 18.75, a P/E/G ratio of 1.33 and a beta of 0.97.

Textron (NYSE:TXT - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The aerospace company reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.15. The company had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.50 billion. Textron had a net margin of 6.22% and a return on equity of 14.63%. Textron's quarterly revenue was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.28 earnings per share. Textron has set its FY 2026 guidance at 6.400-6.600 EPS. On average, equities research analysts anticipate that Textron will post 6.55 earnings per share for the current year.

Insiders Place Their Bets

In other news, EVP Julie G. Duffy sold 19,857 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $98.70, for a total transaction of $1,959,885.90. Following the completion of the sale, the executive vice president owned 37,039 shares in the company, valued at approximately $3,655,749.30. This represents a 34.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Lisa M. Atherton sold 7,600 shares of the business's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $98.68, for a total value of $749,968.00. Following the transaction, the chief executive officer owned 29,473 shares in the company, valued at approximately $2,908,395.64. This trade represents a 20.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 304,473 shares of company stock valued at $29,976,723. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Textron

A number of large investors have recently made changes to their positions in TXT. Envestnet Asset Management Inc. increased its stake in shares of Textron by 10.3% in the third quarter. Envestnet Asset Management Inc. now owns 166,532 shares of the aerospace company's stock worth $14,070,000 after acquiring an additional 15,550 shares during the period. CWA Asset Management Group LLC acquired a new position in Textron during the fourth quarter valued at $1,988,000. Robeco Institutional Asset Management B.V. boosted its holdings in Textron by 6.0% in the third quarter. Robeco Institutional Asset Management B.V. now owns 695,962 shares of the aerospace company's stock valued at $58,802,000 after purchasing an additional 39,389 shares during the last quarter. Rakuten Investment Management Inc. acquired a new stake in Textron during the 3rd quarter worth about $5,018,000. Finally, National Pension Service grew its position in Textron by 28.8% during the 3rd quarter. National Pension Service now owns 83,955 shares of the aerospace company's stock worth $7,093,000 after purchasing an additional 18,782 shares during the period. 86.03% of the stock is owned by hedge funds and other 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 (~$3.69–3.70B) above estimates; revenue rose ~11.8% year-over-year, highlighting stronger top- and bottom-line momentum. Textron Reports First Quarter 2026 Results; Announces Intent to Separate its Industrial Segment
• Positive Sentiment: Company announced intent to separate its Industrial segment (sale or tax‑free spinoff), positioning Textron as a purer aerospace & defense play — investors often reward such simplification if execution is credible. Textron Announces Intent to Separate its Industrial Segment, Enhancing Strategic Focus as a Pure-Play Aerospace and Defense Company
• Positive Sentiment: FY‑2026 EPS guidance set to $6.40–$6.60, roughly in line with or slightly above consensus — gives investors a clear forward framework for valuation. Why Textron Stock Just Popped
• Neutral Sentiment: Analyst/coverage notes and call transcripts are available — the market will parse management’s comments on segment separation, margins, and defense backlog on the conference call. Textron Inc. (TXT) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Small quarterly dividend declared ($0.02/share) — signal of continued shareholder returns but immaterial to valuation on its own. Textron Declares Quarterly Dividend
• Negative Sentiment: Separation carries execution and timing risk (sale vs. tax‑free spinoff, tax/structural considerations and integration/cost issues) — value realization depends on transaction execution and market reception. Textron to Separate Industrial Arm in Shift to Aerospace Focus

About Textron

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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