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

Textron (NYSE:TXT) announced its quarterly earnings data on Thursday. The aerospace company reported $1.76 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $3.77 billion. During the same quarter last year, the business earned $1.55 earnings per share. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year.

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 Trading Up 11.4%

Shares of NYSE:TXT traded up $8.93 during trading on Thursday, reaching $87.25. The stock had a trading volume of 2,673,897 shares, compared to its average volume of 1,636,590. The company has a quick ratio of 0.85, a current ratio of 1.86 and a debt-to-equity ratio of 0.43. The stock has a market cap of $15.01 billion, a P/E ratio of 16.43, a PEG ratio of 1.11 and a beta of 0.91. The business has a fifty day moving average price of $78.52 and a 200-day moving average price of $88.39. Textron has a fifty-two week low of $71.87 and a fifty-two week high of $101.57.

Textron Announces Dividend

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

Analyst Ratings Changes

TXT has been the topic of a number of research analyst reports. UBS Group reiterated a “neutral” rating and set a $95.00 target price on shares of Textron in a research report on Wednesday, July 29th. Morgan Stanley dropped their price target on Textron from $98.00 to $86.00 and set an “equal weight” rating for the company in a research report on Friday, October 16th. Wall Street Zen downgraded Textron from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. TD Cowen decreased their price objective on shares of Textron from $105.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday, October 9th. Finally, Citigroup lowered their price objective on shares of Textron from $99.00 to $86.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, Textron presently has a consensus rating of “Hold” and an average price target of $99.11.

Key Headlines Impacting Textron

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q3 earnings beat expectations: Adjusted earnings were $1.76 per share, versus the $1.43 analyst consensus and $1.55 a year earlier. Revenue rose 4.1% year over year to approximately $3.75 billion, broadly in line with estimates. Textron Q3 Earnings Beat Estimates
• Positive Sentiment: Higher full-year outlook: Textron raised its 2026 adjusted EPS forecast to $6.55–$6.65 and increased its manufacturing cash flow before pension contributions outlook to $800 million–$900 million. Textron Reports Third Quarter 2026 Results
• Positive Sentiment: Textron Aviation was a key growth driver: Segment revenue increased 14% to $1.68 billion, supported by 51 Citation jet deliveries versus 42 in the prior-year quarter. Why Textron Stock Popped
• Positive Sentiment: Defense-program visibility improved: Congressional approval related to the U.S. Army’s ATR request and the MV-75 Cheyenne program may support future defense revenue and funding progress. Textron also received additional Bell 407GXi orders for air-medical operations. Textron Q3 Earnings and MV-75 Funding
• Neutral Sentiment: Textron repurchased approximately $239 million of shares during the quarter and declared its regular $0.02 quarterly dividend. Recent insider trading was mixed, with one insider purchase and one sale, while institutional positioning was also divided.
• Negative Sentiment: Bell revenue declined 9% to $933 million, partially offsetting gains in Aviation and Textron Systems, whose revenue increased 16% to $360 million.

About Textron

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.