Textron (NYSE:TXT) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Textron (NYSE:TXT) issued its quarterly earnings data on Tuesday. The aerospace company reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.55 by $0.07, FiscalAI reports. The firm had revenue of $3.83 billion for the quarter, compared to analyst estimates of $3.81 billion. Textron had a net margin of 6.12% and a return on equity of 14.30%. The company’s revenue was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.55 EPS. Textron updated its FY 2026 guidance to 6.400-6.600 EPS.

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

• Strong demand supported growth: Second-quarter revenue rose 3% to $3.8 billion, with growth across all manufacturing segments, while aviation and Bell backlogs reached $8.0 billion and $7.5 billion, respectively. Adjusted EPS increased to $1.62 from $1.55 a year ago.
• Aviation execution remains the key operational focus. Textron Aviation revenue increased 1%, but profit fell 3% due to manufacturing inefficiencies and lower aircraft volume/mix; management expects third-quarter revenue to track near the second quarter, with margin improvement not expected until the fourth quarter.
• Management is investing in workforce training, factory capacity, engineering support, and dual sourcing to improve Aviation productivity, estimating an eventual opportunity of approximately $150 million in incremental profit. Productivity gains are expected to become more visible in 2027, with aircraft delivery improvements targeted for the middle or latter part of that year.
• Bell faces near-term funding uncertainty for the MV-75 Cheyenne program and is proceeding on a self-funded basis while awaiting congressional approval of $350 million in FY2026 reprogrammed funds. If the funding is not received, adjusted EPS could be reduced by $0.20–$0.30 and cash flow by $150 million–$250 million, although management expects the impact to be a one-time event.
• Full-year guidance was reiterated at adjusted EPS of $6.40–$6.60 and manufacturing cash flow before pension contributions of $700 million–$800 million. Textron also launched the sale process for its Industrial segment while retaining a potential separation or spin-off path to become a pure-play aerospace and defense company.

Textron Price Performance

TXT opened at $85.76 on Thursday. The company has a fifty day moving average price of $91.15 and a two-hundred day moving average price of $92.07. The firm has a market capitalization of $14.91 billion, a PE ratio of 16.18, a P/E/G ratio of 1.35 and a beta of 0.90. Textron has a 52 week low of $75.80 and a 52 week high of $101.57. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.87 and a current ratio of 1.71.

Insider Buying and Selling at Textron

In related news, Director Thomas A. Kennedy purchased 10,300 shares of Textron stock in a transaction dated Friday, May 1st. The shares were acquired at an average cost of $95.98 per share, for a total transaction of $988,594.00. Following the transaction, the director directly owned 20,162 shares of the company’s stock, valued at approximately $1,935,148.76. This trade represents a 104.44% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director R Kerry Clark sold 2,517 shares of Textron stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $93.09, for a total value of $234,307.53. Following the sale, the director directly owned 8,611 shares of the company’s stock, valued at approximately $801,597.99. This trade represents a 22.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.90% of the stock is owned by company insiders.

Institutional Trading of Textron

A number of institutional investors and hedge funds have recently modified their holdings of TXT. State Street Corp boosted its stake in Textron by 2.6% during the 4th quarter. State Street Corp now owns 9,464,324 shares of the aerospace company’s stock worth $825,193,000 after acquiring an additional 244,017 shares during the last quarter. Invesco Ltd. raised its holdings in Textron by 1.7% in the third quarter. Invesco Ltd. now owns 8,270,901 shares of the aerospace company’s stock worth $698,808,000 after purchasing an additional 140,713 shares during the period. Boston Partners raised its holdings in Textron by 0.9% in the third quarter. Boston Partners now owns 7,257,533 shares of the aerospace company’s stock worth $613,327,000 after purchasing an additional 66,747 shares during the period. AQR Capital Management LLC boosted its position in shares of Textron by 51.1% during the fourth quarter. AQR Capital Management LLC now owns 5,357,182 shares of the aerospace company’s stock worth $466,986,000 after purchasing an additional 1,811,787 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Textron by 18.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,551,781 shares of the aerospace company’s stock worth $222,455,000 after purchasing an additional 405,314 shares in the last quarter. 86.03% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

TXT has been the subject of a number of research analyst reports. UBS Group reaffirmed a “neutral” rating and issued a $95.00 target price on shares of Textron in a research note on Wednesday. Citigroup raised their price target on shares of Textron from $97.00 to $99.00 and gave the company a “neutral” rating in a report on Thursday, April 2nd. TD Cowen dropped their price objective on shares of Textron from $115.00 to $105.00 and set a “hold” rating for the company in a research report on Monday, July 13th. Jefferies Financial Group reiterated a “buy” rating on shares of Textron in a research report on Sunday, May 3rd. Finally, Morgan Stanley set a $98.00 target price on Textron in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $102.44.

Textron News Summary

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Textron reported adjusted second-quarter EPS of $1.62, above the $1.55 analyst consensus, while revenue increased 3% year over year to $3.83 billion. Higher aircraft pricing and sustained Bell helicopter demand supported the results. Reuters earnings report
• Positive Sentiment: Bell revenue rose 6%, with commercial helicopter deliveries increasing to 36 from 32 a year earlier. Textron also returned $209 million to shareholders through share repurchases. Textron revenue and shareholder returns
• Positive Sentiment: Textron Aviation’s Cessna Citation CJ3 Gen3 completed its first flight, moving the next-generation light jet closer to certification. All three Citation Gen3 light jets are now in flight testing. Cessna Citation CJ3 Gen3 first flight
• Neutral Sentiment: The company began a sale process for its Industrial segment. A divestiture could sharpen Textron’s focus and unlock value, but it also introduces execution and timing uncertainty. Textron Industrial segment sale
• Negative Sentiment: Textron reiterated—not increased—its 2026 adjusted EPS outlook of $6.40 to $6.60, which was viewed as insufficient after the quarterly beat and roughly brackets consensus expectations.
• Negative Sentiment: Textron Aviation profit fell 3% as manufacturing inefficiencies, lower aircraft volume and an unfavorable mix offset pricing gains. Manufacturing cash flow before pension contributions dropped to $154 million from $336 million a year earlier.
• Negative Sentiment: The outlook assumes additional fiscal 2026 funding for the MV-75 Cheyenne program. Without it, adjusted EPS could be reduced by $0.20–$0.30 and cash flow by $150 million–$250 million. Supply-chain challenges and broader Middle East-related operational and cyber risks add further uncertainty. Textron Q2 earnings call highlights

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.