Textron (NYSE:TXT) Announces Earnings Results

Textron (NYSE:TXT) issued its earnings results on Tuesday. The aerospace company reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.55 by $0.07, FiscalAI reports. Textron had a return on equity of 14.56% and a net margin of 6.15%.During the same period last year, the firm earned $1.55 EPS. The business’s quarterly revenue was up 3.0% on a year-over-year basis. 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 Up 0.6%

Shares of TXT stock opened at $96.09 on Tuesday. The stock has a market capitalization of $16.71 billion, a PE ratio of 18.37, a P/E/G ratio of 1.43 and a beta of 0.90. Textron has a 1-year low of $75.80 and a 1-year high of $101.57. The business has a 50-day moving average of $91.19 and a 200 day moving average of $92.11. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.84 and a quick ratio of 0.87.

Textron Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th were paid a $0.02 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $0.08 annualized dividend and a yield of 0.1%. Textron’s payout ratio is currently 1.53%.

Wall Street Analyst Weigh In

TXT has been the subject of a number of recent analyst reports. Citigroup lifted their target price on Textron from $97.00 to $99.00 and gave the company a “neutral” rating in a report on Thursday, April 2nd. Wall Street Zen raised shares of Textron from a “hold” rating to a “buy” rating in a report on Monday, July 20th. Jefferies Financial Group reaffirmed a “buy” rating on shares of Textron in a research note on Sunday, May 3rd. TD Cowen decreased their target price on shares of Textron from $115.00 to $105.00 and set a “hold” rating on the stock in a report on Monday, July 13th. Finally, Morgan Stanley set a $97.00 target price on shares of Textron in a research note on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $103.10.

Key Textron News

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Textron reported adjusted earnings of $1.62 per share, above the $1.52–$1.55 analyst consensus and up from $1.55 a year earlier. Revenue increased 3% to $3.83 billion, also surpassing estimates. Textron Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Higher aircraft pricing helped drive the earnings beat, while Bell revenue rose 6% to $1.1 billion and commercial helicopter deliveries increased to 36 from 32. Textron Aviation delivered 40 jets and 44 commercial turboprops. Textron tops quarterly results estimates on higher aircraft pricing
• Positive Sentiment: The company returned $209 million to shareholders through share repurchases, providing additional support for per-share results and signaling confidence in cash generation. First-half revenue was up 7% year over year.
• Positive Sentiment: Textron Systems’ Cottonmouth reconnaissance vehicle program received manufacturing support, reflecting potential longer-term defense activity tied to a U.S. Marine Corps award. Cottonmouth vehicle development support
• Neutral Sentiment: Textron reaffirmed its 2026 adjusted EPS outlook of $6.40–$6.60. The midpoint is slightly below the $6.53 consensus estimate, limiting the potential upside from the quarterly beat.
• Neutral Sentiment: The company initiated a sale process for its Industrial segment. This could sharpen focus on aerospace and defense, but proceeds, timing and strategic impact remain uncertain.

Insider Buying and Selling at Textron

In other Textron news, Director Thomas A. Kennedy acquired 10,300 shares of the company’s stock in a transaction on Friday, May 1st. The stock was acquired at an average price of $95.98 per share, for a total transaction of $988,594.00. Following the acquisition, the director owned 20,162 shares in the company, valued at $1,935,148.76. This represents a 104.44% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director R Kerry Clark sold 2,517 shares of Textron stock in a transaction that occurred 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 completion of the sale, the director owned 8,611 shares in the company, valued at approximately $801,597.99. This represents a 22.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.90% of the stock is owned by insiders.

Institutional Trading of Textron

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its stake in shares of Textron by 51.1% during the 4th quarter. AQR Capital Management LLC now owns 5,357,182 shares of the aerospace company’s stock valued at $466,986,000 after purchasing an additional 1,811,787 shares in the last quarter. Adage Capital Partners GP L.L.C. lifted its holdings in Textron by 270.7% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,005,843 shares of the aerospace company’s stock worth $80,759,000 after buying an additional 734,478 shares during the period. Balyasny Asset Management L.P. purchased a new stake in Textron in the third quarter worth about $56,255,000. Dimensional Fund Advisors LP boosted its position in Textron by 18.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,551,781 shares of the aerospace company’s stock valued at $222,455,000 after acquiring an additional 405,314 shares in the last quarter. Finally, Millennium Management LLC boosted its position in Textron by 56.2% during the 3rd quarter. Millennium Management LLC now owns 926,237 shares of the aerospace company’s stock valued at $78,258,000 after acquiring an additional 333,421 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.