Textron (NYSE:TXT – Get Free Report) released its quarterly earnings data on Tuesday. The aerospace company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.55 by $0.07, FiscalAI reports. Textron had a net margin of 6.15% and a return on equity of 14.56%. The business had revenue of $3.83 billion during the quarter, compared to analyst estimates of $3.81 billion. During the same quarter last year, the business earned $1.55 earnings per share. Textron’s quarterly revenue was up 3.0% compared to the same quarter last year. 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 Trading Down 6.2%
TXT opened at $90.16 on Wednesday. The stock has a market cap of $15.68 billion, a price-to-earnings ratio of 17.24, a P/E/G ratio of 1.44 and a beta of 0.90. The stock’s 50 day moving average price is $91.23 and its 200-day moving average price is $92.12. Textron has a one year low of $75.80 and a one year high of $101.57. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.87 and a current ratio of 1.84.
Insiders Place Their Bets
Hedge Funds Weigh In On Textron
A number of hedge funds have recently added to or reduced their stakes in TXT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Textron by 13.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,522 shares of the aerospace company’s stock valued at $1,049,000 after purchasing an additional 1,709 shares during the period. Empowered Funds LLC raised its position in Textron by 6.3% during the 1st quarter. Empowered Funds LLC now owns 21,397 shares of the aerospace company’s stock valued at $1,546,000 after purchasing an additional 1,265 shares in the last quarter. Focus Partners Wealth lifted its holdings in shares of Textron by 18.0% in the 1st quarter. Focus Partners Wealth now owns 4,814 shares of the aerospace company’s stock worth $348,000 after buying an additional 735 shares during the period. Sivia Capital Partners LLC bought a new position in shares of Textron during the 2nd quarter worth $453,000. Finally, Baird Financial Group Inc. lifted its stake in Textron by 15.3% in the second quarter. Baird Financial Group Inc. now owns 19,171 shares of the aerospace company’s stock worth $1,539,000 after acquiring an additional 2,548 shares during the period. 86.03% of the stock is currently owned by institutional investors.
Key Textron News
Here are the key news stories impacting Textron this week:
- Positive Sentiment: Textron reported second-quarter adjusted 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 demand for Bell helicopters supported the results. Reuters article
- Positive Sentiment: Bell revenue rose 6%, commercial helicopter deliveries increased, and Textron returned $209 million to shareholders through share repurchases. The company also announced a process to sell or otherwise separate its Industrial segment, which could sharpen its focus on aerospace and defense and potentially unlock value. Textron Q2 revenue article
- Positive Sentiment: A Textron unit won a $300 million U.S. Navy contract to modernize H-1 aircraft, adding support for the company’s defense backlog and government-business prospects. U.S. Navy contract article
- Neutral Sentiment: Management reiterated 2026 adjusted EPS guidance of $6.40 to $6.60, broadly consistent with expectations. Investors received no forecast increase despite the quarterly beat.
- Negative Sentiment: Textron Aviation profit declined 3% as lower aircraft volume and mix, along with manufacturing inefficiencies, outweighed pricing gains. Manufacturing cash flow before pension contributions fell to $154 million from $336 million a year earlier. Why Textron stock tumbled article
- Negative Sentiment: The 2026 outlook assumes additional funding for the MV-75 Cheyenne program. If that funding does not arrive, Textron warned adjusted EPS could be reduced by $0.20 to $0.30 and cash flow could decline by $150 million to $250 million.
- Negative Sentiment: Textron disclosed that the Middle East conflict creates material operational and cybersecurity risks for its defense and aviation businesses, adding a new geopolitical risk for investors. Middle East conflict risk article
Wall Street Analysts Forecast Growth
A number of research analysts recently commented on TXT shares. Wall Street Zen raised shares of Textron from a “hold” rating to a “buy” rating in a report on Monday, July 20th. TD Cowen decreased their price objective on Textron from $115.00 to $105.00 and set a “hold” rating on the stock in a research report on Monday, July 13th. JPMorgan Chase & Co. lifted their target price on Textron from $90.00 to $105.00 and gave the stock a “neutral” rating in a report on Monday, May 4th. Citigroup boosted their target price on Textron from $97.00 to $99.00 and gave the company a “neutral” rating in a research report on Thursday, April 2nd. Finally, Morgan Stanley set a $97.00 price target on Textron in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $102.89.
Get Our Latest Analysis on TXT
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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