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

Textron (NYSE:TXT) issued its quarterly earnings data on Thursday. The aerospace company reported $1.76 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.33, FiscalAI reports. The business had revenue of $3.75 billion for the quarter, compared to analysts’ expectations of $3.77 billion. Textron had a return on equity of 14.30% and a net margin of 6.12%. The business’s revenue was up 4.1% on a year-over-year basis. During the same period last year, the business earned $1.55 EPS.

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 12.1%

Shares of Textron stock opened at $87.83 on Friday. The firm has a market cap of $15.11 billion, a PE ratio of 16.57, a PEG ratio of 1.14 and a beta of 0.91. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.86 and a quick ratio of 0.85. Textron has a 1 year low of $71.87 and a 1 year high of $101.57. The company has a 50 day simple moving average of $78.55 and a two-hundred day simple moving average of $88.36.

Textron Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 1st. Investors of record on Friday, December 11th will be paid a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Friday, December 11th. Textron’s dividend payout ratio (DPR) is currently 1.51%.

Key Headlines Impacting Textron

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Textron reported adjusted third-quarter EPS of $1.76, well above the $1.43 analyst consensus and up from $1.55 a year earlier. Revenue increased 4.1% year over year to approximately $3.75 billion, broadly near expectations. Textron Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised its 2026 adjusted EPS forecast to $6.55–$6.65 and increased its manufacturing cash-flow outlook before pension contributions to $800 million–$900 million, signaling greater confidence in profitability and cash generation. Textron Reports Third Quarter Results and Raises Outlook
• Positive Sentiment: Textron Aviation was a key growth engine: revenue climbed 14% to $1.68 billion, while Citation jet deliveries rose to 51 from 42 in the prior-year quarter. Congressional approval related to the U.S. Army’s MV-75 Cheyenne program also supports confidence in future defense revenue. Textron Surges After Earnings Beat and Higher Outlook
• Positive Sentiment: Bell announced an order from Global Medical Response for additional Bell 407GXi helicopters, adding a supporting commercial aviation win. Textron also repurchased $239 million of stock during the quarter. Global Medical Response Expands Bell Fleet
• Neutral Sentiment: Textron declared its regular quarterly dividend of $0.02 per share, equivalent to a $0.08 annualized payout and approximately a 0.1% yield. The dividend is unlikely to be a major stock catalyst. Textron Declares Quarterly Dividend
• Negative Sentiment: Revenue came in slightly below the $3.77 billion consensus estimate, and Bell revenue declined 9% to $933 million. These softer areas partially offset the strong Aviation performance, although the EPS and outlook beats dominated investor attention.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on TXT shares. Morgan Stanley cut their price target on shares of Textron from $98.00 to $86.00 and set an “equal weight” rating on the stock in a report on Friday, October 16th. TD Cowen cut their target price on Textron from $105.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, October 9th. UBS Group reaffirmed a “neutral” rating and issued a $95.00 target price on shares of Textron in a report on Wednesday, July 29th. Weiss Ratings downgraded Textron from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday. Finally, Citigroup decreased their price target on Textron from $99.00 to $86.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Textron presently has a consensus rating of “Hold” and an average price target of $99.11.

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.