Textron (NYSE:TXT) Posts Quarterly Earnings Results, Beats Estimates By $0.15 EPS

Textron (NYSE:TXT) announced its earnings results on Thursday. The aerospace company reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.15, FiscalAI reports. Textron had a return on equity of 14.56% and a net margin of 6.15%.The firm had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the company earned $1.28 EPS. The business’s 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 Down 1.3%

TXT traded down $1.25 during trading on Friday, hitting $94.71. 1,855,608 shares of the company’s stock traded hands, compared to its average volume of 1,216,463. The company’s 50 day simple moving average is $92.01 and its two-hundred day simple moving average is $88.94. The company has a current ratio of 1.70, a quick ratio of 0.99 and a debt-to-equity ratio of 0.39. Textron has a 12-month low of $69.46 and a 12-month high of $101.57. The stock has a market capitalization of $16.49 billion, a price-to-earnings ratio of 18.53, a PEG ratio of 1.45 and a beta of 0.93.

Textron Dividend Announcement

The firm 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 is Friday, June 12th. Textron’s dividend payout ratio (DPR) is currently 1.57%.

Insider Buying and Selling at Textron

In other Textron news, VP Mark S. Bamford sold 19,808 shares of the 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 sale, the vice president directly owned 7,872 shares in the company, valued at approximately $771,141.12. This trade represents a 71.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP E Robert Lupone sold 28,056 shares of the 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 owned 103,991 shares in the company, valued at approximately $10,278,470.44. This represents a 21.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, 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 institutional investors and hedge funds have recently modified their holdings of TXT. Wilkerson Advisory Group LLC purchased a new position in shares of Textron in the 4th quarter worth $26,000. Strive Financial Group LLC purchased a new position in shares of Textron in the 4th quarter worth $31,000. Parkside Financial Bank & Trust boosted its stake in shares of Textron by 22.3% in the 4th quarter. Parkside Financial Bank & Trust now owns 653 shares of the aerospace company’s stock worth $57,000 after buying an additional 119 shares during the last quarter. Lazard Asset Management LLC purchased a new position in shares of Textron in the 2nd quarter worth $62,000. Finally, Transamerica Financial Advisors LLC boosted its stake in shares of Textron by 167.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 913 shares of the aerospace company’s stock worth $80,000 after buying an additional 571 shares during the last quarter. 86.03% of the stock is currently owned by hedge funds and other institutional investors.

Textron News Summary

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q1 results beat and revenue/earnings momentum — Textron reported stronger-than-expected Q1 revenue and EPS, with double-digit year-over-year revenue growth and updated FY?2026 EPS guidance roughly in line with Street estimates; management emphasized defense and aviation demand. Press Release
• Positive Sentiment: Analyst upgrade — TD Cowen upgraded TXT from Hold to Buy, which can support share price and attract new buyers. The Fly
• Positive Sentiment: Insider buying — Director Thomas A. Kennedy purchased 10,300 shares at about $96, increasing his stake substantially; insider buys are often read as management confidence in near?to?midterm prospects. SEC Form 4
• Positive Sentiment: Business win in autonomous logistics — Bell (a Textron company) was selected as a partner for an uncrewed logistics program for the U.S. Marine Corps, underlining defense/technology demand. Financial Post
• Neutral Sentiment: Intent to separate Industrial segment — Management announced plans to separate the Industrial segment (sale or tax-free spinoff possible), aiming to create a purer aerospace & defense company and unlock value; this is strategic but creates near-term execution and structural questions. Business Wire
• Neutral Sentiment: Market/analysis coverage: deep dives and call takeaways — Multiple outlets and the earnings call highlighted defense momentum and industrial separation plans; these provide transparency but also emphasize timing (12–18 months) and steps ahead. MSN deep dive
• Negative Sentiment: Separation execution/timing risk — Coverage stresses the 12–18 month window and potential options (sale vs. tax-free spinoff); investors may sell into uncertainty about value realization, tax implications, and one?time costs. Seeking Alpha

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on TXT. Weiss Ratings lowered Textron from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, April 15th. Wall Street Zen lowered Textron from a “strong-buy” rating to a “buy” rating in a research report on Friday, January 23rd. TD Cowen upgraded Textron from a “hold” rating to a “buy” rating in a research note on Thursday. UBS Group increased their target price on Textron from $89.00 to $99.00 and gave the company a “neutral” rating in a research note on Thursday, January 15th. Finally, Susquehanna reiterated a “positive” rating and set a $110.00 target price on shares of Textron in a research note on Thursday, January 15th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Textron presently has a consensus rating of “Hold” and a consensus price target of $98.18.

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.