Textron (NYSE:TXT) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Textron (NYSE:TXT) issued its earnings results on Wednesday. The aerospace company reported $1.73 earnings per share for the quarter, missing analysts’ consensus estimates of $1.74 by ($0.01), FiscalAI reports. The firm had revenue of $4.18 billion for the quarter, compared to analyst estimates of $4.11 billion. Textron had a return on equity of 14.16% and a net margin of 5.81%.Textron’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.34 earnings per share. Textron updated its FY 2026 guidance to 6.400-6.600 EPS.

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

• Textron closed 2025 with strong results — Q4 revenue +16% and segment profit +34% (adjusted EPS $1.73), and full‑year revenue $14.8B (+8%) with adjusted EPS $6.10, reflecting recovery after the 2024 disruptions.
• Bell has materially accelerated the MV‑75 program (90%+ drawings complete, ~2,000 suppliers contracted, 45,000 POs, first components in production), which management says pulls production forward ~2–3 years but could trigger an LRIP catch‑up charge of $60M–$110M when awarded.
• 2026 guidance calls for revenue of about $15.5B, adjusted EPS $6.40–$6.60 and manufacturing cash flow $700M–$800M, while flagging incremental MV‑75 investment (about $350M of higher CapEx/long‑lead in 2026; total CapEx ~ $650M).
• Textron Aviation momentum — 171 jets and 146 turboprops delivered in 2025, aftermarket revenue +6%, several FAA certifications (Citation Ascend, CJ3 Gen2, M2 Gen2) and a strong aviation backlog of about $7.7B.
• Capital allocation remains shareholder‑friendly and disciplined — the company repurchased ~10.7M shares in 2025 (~$822M) and plans to continue buybacks alongside targeted R&D and strategic investments while maintaining a mid‑BBB balance sheet.

Textron Trading Up 1.0%

TXT stock opened at $87.64 on Thursday. The firm’s 50-day moving average is $88.42 and its 200 day moving average is $83.96. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.84 and a quick ratio of 0.86. Textron has a 12 month low of $57.70 and a 12 month high of $96.98. The company has a market capitalization of $15.44 billion, a PE ratio of 19.30, a P/E/G ratio of 1.41 and a beta of 1.00.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. UBS Group raised their target price on shares of Textron from $89.00 to $99.00 and gave the company a “neutral” rating in a research note on Thursday, January 15th. Citigroup boosted their price objective on Textron from $91.00 to $107.00 and gave the company a “neutral” rating in a research report on Tuesday, January 13th. Freedom Capital upgraded shares of Textron to a “strong-buy” rating in a report on Friday, January 16th. Susquehanna reaffirmed a “positive” rating and issued a $110.00 target price on shares of Textron in a research report on Thursday, January 15th. Finally, JPMorgan Chase & Co. reduced their price target on Textron from $90.00 to $88.00 and set a “neutral” rating on the stock in a research note on Monday, October 27th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, Textron currently has a consensus rating of “Hold” and a consensus price target of $97.90.

More Textron News

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q4 revenue and aviation strength: revenue rose ~15.6% Y/Y and the aviation segment delivered record revenue and strong aftermarket/service growth, showing demand resilience. Textron Q4 2025 Earnings Call Highlights
• Positive Sentiment: Solid operating improvement vs. prior year: adjusted EPS rose vs. Q4 2024 and overall revenue topped Street sales estimates, supporting the company’s earnings power longer term. Textron Q4 Press Release
• Neutral Sentiment: Analysts largely unchanged: several firms (UBS, BofA, TD Cowen) maintained Hold ratings with price targets in the $90–$99 range, signaling limited near-term upside despite the mixed results. UBS: Hold on Textron
• Negative Sentiment: Below-consensus profit outlook: management set FY2026 EPS guidance at $6.40–$6.60, below the ~$6.77 consensus — the conservative guide is the primary driver of the stock decline as it reduces near-term earnings visibility. Textron FY2026 Outlook
• Negative Sentiment: Near-term cash and margin headwinds flagged: analysts and the company pointed to MV-75 program headwinds, a step-up in capex and portfolio uncertainties that could pressure margins and cash flow in 2026. TD Cowen: MV-75 headwinds
• Negative Sentiment: Slight EPS miss and market reaction: Q4 adjusted EPS missed consensus by $0.01, and the soft guidance prompted a sharp intraday selloff as investors re-priced near-term earnings risk. Zacks: Q4 EPS lag
• Negative Sentiment: Investor sentiment: coverage pieces note the guidance disappointment drove an ~8% intraday decline as investors reacted to lower near-term profitability despite the strong revenue print. Fool: Why TXT wilted

Institutional Trading of Textron

Hedge funds have recently bought and sold shares of the stock. Lazard Asset Management LLC purchased a new position in Textron in the second quarter worth $62,000. Geneos Wealth Management Inc. grew its stake in Textron by 18.8% during the 2nd quarter. Geneos Wealth Management Inc. now owns 998 shares of the aerospace company’s stock worth $80,000 after buying an additional 158 shares during the last quarter. Advisory Services Network LLC acquired a new position in Textron during the 3rd quarter valued at about $96,000. Johnson Financial Group Inc. boosted its holdings in Textron by 820.0% in the third quarter. Johnson Financial Group Inc. now owns 1,334 shares of the aerospace company’s stock worth $113,000 after acquiring an additional 1,189 shares in the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in shares of Textron by 25.7% during the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,760 shares of the aerospace company’s stock valued at $149,000 after acquiring an additional 360 shares in the last quarter. Hedge funds and other institutional investors own 86.03% of the company’s stock.

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.