Textron posts adjusted earnings of $1.76 per share and raises 2026 outlook
Key Facts
Textron reported on October 29 adjusted earnings of $1.76 per share in the third quarter of 2026, beating analysts’ estimate of $1.43 by $0.33, according to Investing.com, citing Reuters. Earnings from continuing operations under accounting standards were $1.56 per share, compared with $1.31 in the same period of 2025. Adjusted earnings rose from $1.55 per share a year earlier. Revenue reached $3.751 billion, versus $3.602 billion in the third quarter of 2025, according to Textron data published via Nasdaq. Revenue also exceeded the consensus estimate of $3.77 billion, according to Investing.com. The company linked the results to an increase in its full-year profit and cash flow outlook.
Revenue growth was supported by the aviation and systems segments, while a decline at Bell limited the overall increase. Textron Aviation revenue rose 14% to $1.7 billion, up $201 million from the year-earlier period. The company attributed the increase to a $152 million rise in aircraft revenue and a $49 million rise in aftermarket services and parts revenue. The segment delivered 51 business jets during the quarter, compared with 42 a year earlier. Its backlog stood at $8 billion at quarter-end. Chief Executive Lisa Atherton said, "Higher business jet deliveries at Textron Aviation and program execution at Textron Systems drove double-digit growth in both segments' revenue."
Textron Systems revenue rose 16% to $360 million, up $50 million from the third quarter of 2025. The company said higher volume in armored ground vehicles and military training and support services contributed to the increase. Segment profit rose 21% to $57 million, up $10 million. By contrast, Bell revenue fell 9% to $933 million, down $93 million year over year. Textron attributed $59 million of the decline to lower military revenue, which was mainly tied to lower activity on the MV-75 program. Atherton said Bell had made "significant operational progress" on the MV-75 Cheyenne program.
Textron raised its adjusted earnings outlook for fiscal 2026 to $6.55–$6.65 per share, from $6.40–$6.60 previously. It also raised its GAAP earnings per share outlook to $5.64–$5.74, compared with the previous range of $5.39–$5.59. The company increased its manufacturing cash flow outlook before pension contributions to $800–$900 million, from $700–$800 million. The company said the updated outlook reflected Congress approving the U.S. Army’s reprogramming request related to the MV-75 Cheyenne program. It added that contract modifications related to the program allow funding to be obligated. The outlook revision followed an improvement in cash generated during the quarter, as net cash provided by operating activities for the manufacturing group was $512 million, compared with $348 million a year earlier.
Manufacturing cash flow before pension contributions was $418 million in the third quarter, compared with $281 million in the same period of 2025. The company returned $239 million to shareholders through share repurchases during the quarter. For the nine months ended October 3, 2026, revenue reached $11.273 billion, compared with $10.624 billion in the corresponding period of 2025. Earnings per share from continuing operations for those months were $4.23, compared with $3.79 a year earlier. Before the results announcement, analysts estimated earnings of $1.43 per share and revenue of $3.77 billion for the third quarter. The estimates compared with the second quarter, when earnings were $1.62 per share and revenue was $3.8 billion, according to Investing.com, citing Reuters.
The stock moved higher before the market opened on October 29, with Investing.com reporting a 5.3% gain following the results announcement. Textron shares had closed at $78.32 on October 28, according to EL7 data. The company had set October 29 as the date for releasing its third-quarter results and said the earnings call would be held at 8:00 a.m. Eastern time. The annual outlook update helps explain the market’s initial response, as the announcement combined an earnings beat with higher profit and cash flow ranges. The results also showed diverging performance across segments: growth in aviation and systems was offset by a decline in Bell revenue, partly linked to lower activity on the MV-75 program.