Textron (NYSE:TXT) Shares Gap Up After Earnings Beat

Textron Inc. (NYSE:TXT) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $78.32, but opened at $85.28. Textron shares last traded at $87.5270, with a volume of 353,362 shares traded.

The aerospace company reported $1.76 earnings per share for the quarter, topping the consensus estimate of $1.43 by $0.33. Textron had a net margin of 6.12% and a return on equity of 14.30%. Textron’s revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the company posted $1.55 earnings per share.

Textron Announces Dividend

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

Textron News Roundup

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Earnings exceeded expectations: Textron reported adjusted third-quarter EPS of $1.76 versus the $1.43 analyst consensus. GAAP diluted EPS was $1.56, compared with $1.31 in the prior-year period. Textron Q3 Earnings Beat Estimates
• Positive Sentiment: Full-year guidance increased: Textron raised its 2026 GAAP EPS outlook to $5.64–$5.74 from its previous forecast and lifted manufacturing cash flow before pension contributions to $800 million–$900 million. The higher guidance signals improved confidence in profitability and cash generation. Textron Raises 2026 Outlook
• Positive Sentiment: Aviation and defense-related businesses performed well: Textron Aviation revenue increased 14% to $1.68 billion, with jet deliveries rising to 51 from 42. Textron Systems revenue climbed 16% to $360 million, helping offset weakness elsewhere.
• Positive Sentiment: Capital returns and new orders add support: The company repurchased $239 million of stock during the quarter. Bell also received orders for additional Bell 407GXi helicopters from air-medical operators, including HALO-Flight and Global Medical Response, supporting future demand. HALO-Flight Bell 407GXi Purchase Order
• Neutral Sentiment: Textron declared its regular $0.02 quarterly dividend, equivalent to $0.08 annually and a yield of approximately 0.1%, making it a modest factor for income-focused investors. Textron Declares Quarterly Dividend
• Negative Sentiment: Segment weakness remains: Bell revenue declined 9% to $933 million, while Industrial revenue increased only 1% to $765 million. Investors may also monitor whether rising costs could limit the benefit of stronger deliveries and defense sales.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on TXT shares. UBS Group reissued a “neutral” rating and set a $95.00 target price on shares of Textron in a research report on Wednesday, July 29th. Citigroup dropped their target price on shares of Textron from $99.00 to $86.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Wall Street Zen downgraded shares of Textron from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Weiss Ratings cut shares of Textron from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday. Finally, TD Cowen decreased their price target on Textron from $105.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $99.11.

Institutional Investors Weigh In On Textron

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Textron during the third quarter valued at $3,389,000. ProShare Advisors LLC lifted its position in shares of Textron by 8.6% during the third quarter. ProShare Advisors LLC now owns 48,549 shares of the aerospace company’s stock worth $3,699,000 after acquiring an additional 3,851 shares in the last quarter. MGO One Seven LLC increased its stake in Textron by 13.2% in the 3rd quarter. MGO One Seven LLC now owns 3,981 shares of the aerospace company’s stock worth $303,000 after acquiring an additional 463 shares during the last quarter. International Assets Investment Management LLC purchased a new position in shares of Textron during the 3rd quarter valued at about $3,810,000. Finally, Soltis Investment Advisors LLC lifted its position in Textron by 337.4% in the third quarter. Soltis Investment Advisors LLC now owns 15,580 shares of the aerospace company’s stock valued at $1,187,000 after purchasing an additional 12,018 shares during the last quarter. 86.03% of the stock is currently owned by institutional investors.

Textron Stock Performance

The company has a market cap of $15.16 billion, a P/E ratio of 16.63, a P/E/G ratio of 1.11 and a beta of 0.91. The business has a fifty day moving average of $78.52 and a 200 day moving average of $88.39. The company has a quick ratio of 0.85, a current ratio of 1.86 and a debt-to-equity ratio of 0.43.

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.