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

Textron (NYSE:TXT) announced its quarterly earnings data on Thursday. The aerospace company reported $1.45 EPS for the quarter, beating analysts’ consensus estimates of $1.30 by $0.15, FiscalAI reports. Textron had a return on equity of 14.63% and a net margin of 6.22%.The company had revenue of $3.70 billion during the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the prior year, the firm earned $1.28 EPS. The company’s quarterly revenue was up 11.8% compared to the same quarter last year. 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%

NYSE:TXT traded up $6.05 during trading hours on Thursday, hitting $95.83. 3,708,555 shares of the stock traded hands, compared to its average volume of 1,678,587. The firm has a 50 day moving average price of $92.07 and a 200 day moving average price of $88.89. The company has a current ratio of 1.97, a quick ratio of 0.99 and a debt-to-equity ratio of 0.49. Textron has a fifty-two week low of $69.46 and a fifty-two week high of $101.57. The firm has a market cap of $16.68 billion, a price-to-earnings ratio of 18.75, a PEG ratio of 1.33 and a beta of 0.97.

Textron Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Freedom Capital upgraded Textron to a “strong-buy” rating in a research report on Friday, January 16th. Sanford C. Bernstein increased their price objective on Textron from $94.00 to $108.00 and gave the company a “market perform” rating in a research report on Thursday, February 19th. Wells Fargo & Company assumed coverage on Textron in a research report on Wednesday, April 1st. They set an “equal weight” rating and a $92.00 price objective for the company. Wall Street Zen downgraded Textron from a “strong-buy” rating to a “buy” rating in a research report on Friday, January 23rd. Finally, TD Cowen raised shares of Textron from a “hold” rating to a “buy” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $98.18.

Insider Activity at Textron

In other Textron news, Chairman Scott C. Donnelly sold 219,619 shares of the business’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $98.41, for a total transaction of $21,612,705.79. Following the sale, the chairman directly owned 742,418 shares of the company’s stock, valued at $73,061,355.38. The trade was a 22.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Julie G. Duffy sold 19,857 shares of the business’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $98.70, for a total transaction of $1,959,885.90. Following the sale, the executive vice president directly owned 37,039 shares in the company, valued at approximately $3,655,749.30. This trade represents a 34.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 304,473 shares of company stock worth $29,976,723. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Textron

A number of hedge funds have recently modified their holdings of TXT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Textron by 13.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,522 shares of the aerospace company’s stock worth $1,049,000 after acquiring an additional 1,709 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Textron by 6.3% in the first quarter. Empowered Funds LLC now owns 21,397 shares of the aerospace company’s stock worth $1,546,000 after acquiring an additional 1,265 shares during the last quarter. Focus Partners Wealth increased its stake in shares of Textron by 18.0% in the first quarter. Focus Partners Wealth now owns 4,814 shares of the aerospace company’s stock worth $348,000 after acquiring an additional 735 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Textron in the second quarter worth $453,000. Finally, Baird Financial Group Inc. increased its stake in shares of Textron by 15.3% in the second quarter. Baird Financial Group Inc. now owns 19,171 shares of the aerospace company’s stock worth $1,539,000 after acquiring an additional 2,548 shares during the last quarter. 86.03% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Textron

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

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.