Textron (NYSE:TXT) Announces Earnings Results, Beats Estimates By $0.33 EPS

Posted by on Oct 29th, 2026

Textron (NYSE:TXT – Get Free Report) posted its quarterly earnings data on Thursday. The aerospace company reported $1.76 earnings per share for the quarter, beating analysts’ consensus estimates of $1.43 by $0.33, FiscalAI reports. Textron had a net margin of 6.12% and a return on equity of 14.30%. The firm had revenue of $3.75 billion for the quarter, compared to analyst estimates of $3.77 billion. During the same period last year, the firm posted $1.55 EPS. Textron’s quarterly revenue was up 4.1% on a year-over-year basis.

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

  • Textron raised its full-year outlook, increasing adjusted EPS guidance to $6.55–$6.65 from $6.40–$6.60 and manufacturing cash flow guidance to $800–$900 million from $700–$800 million. The cash-flow increase is primarily driven by approximately $100 million in lower expected capital expenditures and strong Aviation customer deposits.
  • Textron Aviation revenue grew 14% year over year to $1.7 billion, supported by higher jet deliveries, aftermarket revenue growth of 10%, and the strongest third-quarter order activity since 2023. Management said demand remains broad-based and is investing in tooling, automation, capacity, and supplier diversification to improve production and pursue roughly 200 annual deliveries across jets, turboprops, and helicopters.
  • Textron Systems delivered 16% revenue growth and a $230 million contract modification for two additional Ship-to-Shore Connector craft, which has reached full-rate production. Growth is also supported by Ukraine-bound MSFV vehicles, the ARV and XM30 programs, and continued strength at ATAC.
  • Bell made operational progress on the MV-75 program after Congress approved a $350 million fiscal 2026 funding request, with approximately $300 million obligated during the quarter. However, the program remains exposed to continuing-resolution and appropriations timing, and the expected LRIP award could be delayed into 2027, potentially increasing the anticipated negative accounting impact to $110–$150 million.
  • Textron remains on track for the previously announced 12-to-18-month separation or spin of its Industrial segment, although management provided no new milestone dates. The company also indicated it is evaluating acquisitions, including potentially transformational aerospace and defense opportunities, but stressed that valuation and strategic fit remain important constraints.

Textron Price Performance

NYSE:TXT traded up $9.51 during trading hours on Thursday, reaching $87.83. 4,282,373 shares of the company traded hands, compared to its average volume of 1,645,673. The firm’s 50-day moving average is $78.52 and its 200-day moving average is $88.39. The stock has a market cap of $15.11 billion, a P/E ratio of 16.57, a P/E/G ratio of 1.11 and a beta of 0.91. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.86 and a quick ratio of 0.85. Textron has a 1-year low of $71.87 and a 1-year high of $101.57.

Textron Announces Dividend

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

Textron News Roundup

Here are the key news stories impacting Textron this week:

  • Positive Sentiment: Adjusted EPS beat estimates: Textron reported adjusted earnings of $1.76 per share, versus the $1.43 analyst consensus and $1.55 in the year-ago quarter. Revenue rose 4.1% year over year to approximately $3.75 billion, slightly below expectations but supported by improved profitability. Textron Q3 Earnings Beat Estimates
  • Positive Sentiment: Higher 2026 guidance: Management raised its adjusted EPS outlook to $6.55-$6.65 and increased its manufacturing cash-flow forecast before pension contributions to $800 million-$900 million. The improved outlook gives investors greater confidence in earnings and cash generation. Textron Reports Third Quarter Results and Raises Outlook
  • Positive Sentiment: Aviation momentum: Textron Aviation revenue climbed 14% to $1.68 billion, while Citation jet deliveries increased to 51 from 42 a year earlier. Investors also responded positively to progress related to congressional approval and contract modifications for the U.S. Army’s MV-75 Cheyenne program, which could support future defense revenue.
  • Positive Sentiment: Free cash flow reportedly surged 51% year over year, and Textron repurchased approximately $239 million of stock during the quarter, adding to shareholder-supportive capital allocation. Why Textron Stock Popped
  • Neutral Sentiment: Bell revenue declined 9% to $933 million, partially offsetting gains in Aviation and Textron Systems. Separately, Bell received an order for additional 407GXi helicopters from Global Medical Response, a positive commercial win but not a disclosed material financial catalyst. Global Medical Response Expands Bell Fleet
  • Neutral Sentiment: Textron declared its regular $0.02 quarterly dividend, equivalent to $0.08 annually and a roughly 0.1% yield, which is unlikely to be a major driver of the stock’s move.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on TXT shares. TD Cowen dropped their price target on shares of Textron from $105.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, October 9th. Morgan Stanley decreased their price objective on shares of Textron from $98.00 to $86.00 and set an “equal weight” rating on the stock in a report on Friday, October 16th. Weiss Ratings lowered Textron from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday. Wall Street Zen downgraded Textron from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, UBS Group reissued a “neutral” rating and issued a $95.00 target price on shares of Textron in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $99.11.

Get Our Latest Stock Report on TXT

About Textron

(Get Free Report)

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.

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Earnings History for Textron (NYSE:TXT)

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