Textron (NYSE:TXT) Releases Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Textron (NYSE:TXT) issued its earnings results on Thursday. The aerospace company reported $1.45 EPS for the quarter, topping the consensus estimate of $1.30 by $0.15, FiscalAI reports. The business had revenue of $3.70 billion during the quarter, compared to analysts’ expectations of $3.50 billion. Textron had a return on equity of 14.63% and a net margin of 6.22%.Textron’s revenue was up 11.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.28 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 reported a strong Q1 with $3.7 billion revenue (+12%), segment profit of $320 million (+10%) and adjusted EPS of $1.45 (+13%), driven by higher deliveries, 10% aftermarket growth and a company backlog supporting continued demand.
• The company announced plans to separate the industrial segment from its A&D businesses—targeting completion in 12–18 months and exploring sale or a tax-free spin-off—positioning “New Textron” as a pure?play A&D with ~ $12B revenue and improved growth and margin profile.
• Bell’s MV-75 Cheyenne program is advancing toward prototype deliveries (all CDRs done except weapon-system CDR), supported by a defense FYDP showing escalating RDT&E and procurement funding and a potential multi?decade production run.
• Manufacturing cash flow before pension contributions used $228 million in Q1 (worse than prior year), and Bell segment profit fell $18 million YoY—pressures management attributes to program mix, lower commercial helicopter volume and near?term supply/efficiency headwinds.
• Industrial (Kautex and Textron Specialized Vehicles) is a $3B business with growth initiatives (EV battery enclosures, hybrid fuel tanks, Allegro) and is being evaluated as a combined or separated asset; company says stranded costs would be minimal but the final path remains undecided.

Textron Stock Up 6.7%

TXT traded up $6.05 during trading on Thursday, reaching $95.83. 3,708,555 shares of the stock traded hands, compared to its average volume of 1,678,587. The stock has a market cap of $16.68 billion, a price-to-earnings ratio of 18.75, a price-to-earnings-growth ratio of 1.33 and a beta of 0.97. Textron has a fifty-two week low of $69.46 and a fifty-two week high of $101.57. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.97 and a quick ratio of 0.99. The stock’s 50-day simple moving average is $92.07 and its two-hundred day simple moving average is $88.89.

Textron Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $0.02 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $0.08 dividend on an annualized basis and a yield of 0.1%. Textron’s dividend payout ratio (DPR) is presently 1.57%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on TXT. Jefferies Financial Group decreased their target price on Textron from $115.00 to $110.00 and set a “buy” rating for the company in a research report on Tuesday, April 7th. Morgan Stanley set a $92.00 target price on Textron in a research report on Thursday, January 29th. UBS Group raised their target price on Textron from $89.00 to $99.00 and gave the stock a “neutral” rating in a research report on Thursday, January 15th. TD Cowen raised Textron from a “hold” rating to a “buy” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. raised their target price on Textron from $88.00 to $90.00 and gave the stock a “neutral” rating in a research report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $98.18.

Textron News Roundup

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q1 results beat expectations — Textron reported adjusted EPS of $1.45 vs. consensus ~$1.30 and revenue of ~$3.7B (up ~12% y/y), driven by aviation demand and strong jet deliveries; this underpins improved profitability and topline momentum. Textron Reports First Quarter 2026 Results
• Positive Sentiment: FY-2026 EPS guidance of $6.40–$6.60 (consensus ~6.49) confirms management’s outlook and supports multiple-quarters of earnings power, reducing near-term forecast uncertainty. Textron Reports First Quarter 2026 Results
• Positive Sentiment: Strategic move to separate the Industrial segment — management announced intent to explore sale or tax-free spinoff to create a pure-play aerospace & defense company, a change investors often reward because it can unlock valuation and focus capital allocation. Textron Announces Intent to Separate its Industrial Segment
• Positive Sentiment: Analyst upgrade — TD Cowen moved Textron from “hold” to “buy,” likely amplifying demand from institutional and retail investors. (Upgrade reported 4/30)
• Positive Sentiment: Defense / program news — Bell (a Textron company) was selected by Near Earth Autonomy to provide the Bell 505 airframe for the U.S. Marine Corps MARV?EL program, highlighting contract wins and non?commercial growth avenues. Bell Selected by Near Earth Autonomy to Provide Bell 505 Airframe
• Neutral Sentiment: Quarterly dividend declared ($0.02/share) — a token return of capital but too small to materially change investor income profiles. Textron Declares Quarterly Dividend
• Neutral Sentiment: Separation execution risk & timing — while the strategic split is viewed positively, the process (sale vs. tax-free spinoff) carries execution uncertainty, potential one-time costs and a timetable that could introduce volatility. Coverage of the move is in the WSJ. Textron to Separate Industrial Arm
• Negative Sentiment: Guidance in-line with consensus — the FY range essentially matches Street expectations, meaning upside from guidance alone is limited; further stock gains will likely depend on execution, segment separation details, and continued delivery momentum. Textron Q1 Earnings: Key Metrics Versus Estimates

Insider Activity

In related news, VP Mark S. Bamford sold 19,808 shares of Textron stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $97.96, for a total transaction of $1,940,391.68. Following the completion of the sale, the vice president owned 7,872 shares of the company’s stock, valued at approximately $771,141.12. This trade represents a 71.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP E Robert Lupone sold 28,056 shares of Textron stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $98.84, for a total value of $2,773,055.04. Following the sale, the executive vice president directly owned 103,991 shares of the company’s stock, valued at approximately $10,278,470.44. The trade was a 21.25% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 304,473 shares of company stock valued at $29,976,723. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Textron

Institutional investors have recently bought and sold shares of the stock. Wilkerson Advisory Group LLC bought a new position in Textron during the fourth quarter valued at about $26,000. Strive Financial Group LLC bought a new position in Textron during the fourth quarter valued at about $31,000. Parkside Financial Bank & Trust raised its holdings in Textron by 22.3% during the fourth quarter. Parkside Financial Bank & Trust now owns 653 shares of the aerospace company’s stock valued at $57,000 after buying an additional 119 shares in the last quarter. Lazard Asset Management LLC bought a new position in Textron during the second quarter valued at about $62,000. Finally, Transamerica Financial Advisors LLC raised its holdings in Textron by 167.0% during the fourth quarter. Transamerica Financial Advisors LLC now owns 913 shares of the aerospace company’s stock valued at $80,000 after buying an additional 571 shares in the last quarter. 86.03% of the stock is currently owned by institutional investors.

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.