Textron (NYSE:TXT) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Textron (NYSE:TXT) released its earnings results on Wednesday. The aerospace company reported $1.73 EPS for the quarter, missing the consensus estimate of $1.74 by ($0.01), FiscalAI reports. Textron had a return on equity of 14.63% and a net margin of 6.22%.The business had revenue of $4.18 billion for the quarter, compared to analyst estimates of $4.11 billion. During the same period in the prior year, the business earned $1.34 EPS. The company’s revenue for the quarter was up 15.6% 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:

• Textron closed 2025 with strong results — Q4 revenue +16% and segment profit +34% (adjusted EPS $1.73), and full‑year revenue $14.8B (+8%) with adjusted EPS $6.10, reflecting recovery after the 2024 disruptions.
• Bell has materially accelerated the MV‑75 program (90%+ drawings complete, ~2,000 suppliers contracted, 45,000 POs, first components in production), which management says pulls production forward ~2–3 years but could trigger an LRIP catch‑up charge of $60M–$110M when awarded.
• 2026 guidance calls for revenue of about $15.5B, adjusted EPS $6.40–$6.60 and manufacturing cash flow $700M–$800M, while flagging incremental MV‑75 investment (about $350M of higher CapEx/long‑lead in 2026; total CapEx ~ $650M).
• Textron Aviation momentum — 171 jets and 146 turboprops delivered in 2025, aftermarket revenue +6%, several FAA certifications (Citation Ascend, CJ3 Gen2, M2 Gen2) and a strong aviation backlog of about $7.7B.
• Capital allocation remains shareholder‑friendly and disciplined — the company repurchased ~10.7M shares in 2025 (~$822M) and plans to continue buybacks alongside targeted R&D and strategic investments while maintaining a mid‑BBB balance sheet.

Textron Price Performance

Shares of NYSE TXT opened at $87.92 on Friday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.86 and a current ratio of 1.82. The firm’s 50-day simple moving average is $88.58 and its 200 day simple moving average is $83.99. The stock has a market cap of $15.49 billion, a price-to-earnings ratio of 17.20, a PEG ratio of 1.30 and a beta of 1.00. Textron has a fifty-two week low of $57.70 and a fifty-two week high of $96.98.

Analyst Ratings Changes

Several analysts have recently weighed in on TXT shares. Wall Street Zen lowered shares of Textron from a “strong-buy” rating to a “buy” rating in a research note on Friday, January 23rd. Jefferies Financial Group restated a “buy” rating and issued a $115.00 price target on shares of Textron in a report on Thursday, January 15th. Citigroup dropped their price objective on shares of Textron from $107.00 to $97.00 and set a “neutral” rating on the stock in a report on Thursday. JPMorgan Chase & Co. raised their target price on Textron from $88.00 to $90.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Weiss Ratings lowered Textron from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $97.70.

Textron News Roundup

Here are the key news stories impacting Textron this week:

• Positive Sentiment: JPMorgan issued a more constructive view and nudged its price target higher, signaling some analyst confidence in Textron’s recovery and aviation strength. JPMorgan Chase & Co. Issues Positive Forecast for Textron
• Positive Sentiment: Some value-focused research highlights TXT as a strong value candidate, supporting interest from longer‑term/value investors despite near‑term headwinds. Here’s Why Textron (TXT) is a Strong Value Stock
• Neutral Sentiment: Multiple sell‑side firms (UBS, BofA, TD Cowen) kept Hold ratings with mixed price targets — reflecting balanced risk/reward: aviation strength but margin and near‑term cash concerns. These maintenances help explain uneven analyst sentiment. UBS Hold commentary on Textron
• Negative Sentiment: Q4 results: EPS $1.73 (missed by $0.01) and revenue beat, but management set FY2026 EPS guidance of $6.40–$6.60 — below Street expectations. The softer profit outlook and commentary about near‑term pressure on margins drove investor selling. Reuters: Textron posts strong quarter but forecast lags
• Negative Sentiment: Shares gapped down after the earnings/guidance release as markets punished the conservative outlook and margin/capex concerns highlighted by management. Textron Shares Gap Down on Disappointing Earnings
• Negative Sentiment: Citigroup trimmed its price target to $97 (from $107), reflecting reduced visibility on margins/portfolio execution; that cut adds to near‑term downside risk even though the PT still implies upside to the current price. Citigroup cuts Textron price target to $97

Institutional Investors Weigh In On Textron

Institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC lifted its stake in Textron by 79.5% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,960 shares of the aerospace company’s stock valued at $166,000 after acquiring an additional 868 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Textron in the third quarter valued at about $2,084,000. Captrust Financial Advisors lifted its position in shares of Textron by 20.6% during the third quarter. Captrust Financial Advisors now owns 165,811 shares of the aerospace company’s stock valued at $14,009,000 after purchasing an additional 28,311 shares in the last quarter. Coldstream Capital Management Inc. boosted its holdings in Textron by 5.4% during the third quarter. Coldstream Capital Management Inc. now owns 4,164 shares of the aerospace company’s stock worth $352,000 after purchasing an additional 214 shares during the last quarter. Finally, Danske Bank A S bought a new stake in Textron in the 3rd quarter worth about $10,756,000. 86.03% of the stock is owned by hedge funds and other institutional investors.

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.