Textron (NYSE:TXT) Shares Gap Down After Earnings Miss

Textron Inc. (NYSE:TXT)’s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $94.23, but opened at $90.53. Textron shares last traded at $85.9350, with a volume of 2,854,860 shares traded.

The aerospace company reported $1.73 EPS for the quarter, missing the consensus estimate of $1.74 by ($0.01). Textron had a net margin of 5.81% and a return on equity of 14.16%. The business had revenue of $4.18 billion during the quarter, compared to analysts’ expectations of $4.11 billion. During the same quarter in the previous year, the firm earned $1.34 earnings per share. Textron’s revenue was up 15.6% on a year-over-year basis. Textron has set its FY 2026 guidance at 6.400-6.600 EPS.

Key Textron News

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Revenue and segment strength — Textron reported Q4 revenue of about $4.17B (+~15.6% y/y), driven by Aviation aftermarket services and higher aircraft deliveries, which underpin cash flow and backlog improvement. Aircraft maker Textron posts strong quarterly results
• Positive Sentiment: Sales topped estimates — Revenue beat Street sales expectations (reported ~$4.175B vs. estimates near $4.11B), and adjusted EPS improved year over year (adjusted $1.73 vs $1.34 a year ago), showing underlying business momentum. Textron Beats Q4 Sales Expectations
• Neutral Sentiment: EPS essentially inline — Adjusted EPS was $1.73, missing the consensus by $0.01 (consensus ~$1.74). The miss is immaterial in size but removes upside surprise. Textron Q4 Earnings Lag Estimates
• Negative Sentiment: Guidance disappointed — Management set FY?2026 EPS guidance of $6.40–$6.60 versus a Street consensus near $6.77, a below?consensus outlook that prompted investors to mark down forward valuation and drove selling pressure. Textron Warns Of Near-Term Pressure With Conservative Outlook Reuters: 2026 profit forecast lags estimates
• Negative Sentiment: Market reaction — Traders sold into the report and the conservative outlook, with premarket and early trading weakness reflecting concern that FY?2026 margin/earnings progression may be slower than expected. Textron shares slide premarket after soft 2026 profit outlook

Analyst Upgrades and Downgrades

TXT has been the subject of a number of research reports. Jefferies Financial Group restated a “buy” rating and set a $115.00 target price on shares of Textron in a research report on Thursday, January 15th. UBS Group boosted their price target on shares of Textron from $89.00 to $99.00 and gave the stock a “neutral” rating in a research note on Thursday, January 15th. Sanford C. Bernstein restated a “market perform” rating and set a $94.00 price objective on shares of Textron in a research report on Tuesday, January 6th. Freedom Capital upgraded Textron to a “strong-buy” rating in a research report on Friday, January 16th. Finally, TD Cowen cut their price target on Textron from $95.00 to $90.00 and set a “hold” rating for the company in a report on Friday, October 24th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, Textron presently has a consensus rating of “Hold” and an average target price of $97.90.

Hedge Funds Weigh In On Textron

A number of institutional investors and hedge funds have recently modified their holdings of TXT. AQR Capital Management LLC grew its holdings in Textron by 144.1% during the 2nd quarter. AQR Capital Management LLC now owns 2,664,612 shares of the aerospace company’s stock valued at $213,942,000 after purchasing an additional 1,573,206 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Textron during the second quarter valued at approximately $66,446,000. Adage Capital Partners GP L.L.C. boosted its position in shares of Textron by 270.7% during the second quarter. Adage Capital Partners GP L.L.C. now owns 1,005,843 shares of the aerospace company’s stock valued at $80,759,000 after buying an additional 734,478 shares during the period. Balyasny Asset Management L.P. bought a new position in shares of Textron during the third quarter valued at approximately $56,255,000. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Textron by 62.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,231,492 shares of the aerospace company’s stock worth $98,876,000 after buying an additional 471,274 shares during the period. Hedge funds and other institutional investors own 86.03% of the company’s stock.

Textron Price Performance

The company has a current ratio of 1.84, a quick ratio of 0.86 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $15.34 billion, a P/E ratio of 19.10, a price-to-earnings-growth ratio of 1.42 and a beta of 1.00. The stock has a 50 day moving average of $88.28 and a 200-day moving average of $83.94.

About Textron

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.