Textron shares rise 2.2% after results and improved annual outlook

Key Facts

Textron shares rose 2.2% after the company reported third-quarter results and improved its outlook, according to Investing.com. The stock’s move followed the announcement on October 29, the report said. Wall Street estimates before the results pointed to earnings of $1.43 per share and revenue of $3.77 billion for the quarter ended in September. Earnings-per-share estimates had also fallen 4.8% in the 60 days before the announcement, according to Investing.com. The report linked the stock’s rise to the results and the improvement in the company’s annual outlook.

The results were preceded by a second quarter in which the company’s revenue rose to $3.8 billion, up 3%, or $111 million, year over year, according to an investor relations statement. Earnings per share for the quarter were $1.42, while adjusted earnings reached $1.62, compared with $1.55 in the same period a year earlier. In July, the company expected adjusted earnings per share of $6.40 to $6.60 for fiscal 2026. It then estimated manufacturing cash flow before pension contributions at $700 million to $800 million. These figures provide context for the expectations ahead of the company’s annual outlook update after its third-quarter results.

The July outlook assumed that the MV-75 Cheyenne program would receive additional funding during fiscal 2026, according to the company’s statement. Textron said that not receiving the funding could negatively affect adjusted earnings per share by $0.20 to $0.30. The company then estimated the potential impact on cash flow at $150 million to $250 million. Second-quarter data also showed manufacturing-group operating cash flow falling to $235 million from $395 million a year earlier. Manufacturing cash flow before pension contributions was $154 million, compared with $336 million in the second quarter of 2025.

In the second quarter, the company returned $209 million to shareholders through share repurchases, according to its statement. Before the results, investors were watching for an update to the full-year outlook and management’s comments on the aviation segment, according to an Investing.com report published on October 28. The report said the stock had fallen more than 23% from its 52-week high. Textron scheduled a call to discuss its third-quarter results and outlook for October 29 at 8:00 a.m. Eastern Time. EL7 data showed the stock closing at $78.32 on October 28, before the gains reported after the announcement.