Textron Posts Adjusted Earnings of $1.76 per Share, Raises 2026 Annual Outlook
Key Facts
Textron reported on October 29 results for the third quarter ended October 3, 2026, posting adjusted earnings of $1.76 per share, $0.33 above the average analyst estimate of $1.43. Revenue was $3.8 billion, versus a consensus estimate of $3.77 billion, according to Investing.com. The stock rose 2.2% after the announcement and outlook increase, according to Reuters coverage via Investing.com. The results followed the company's announcement that morning, making the share-price move a response after the announcement rather than a move in the October 28 session, as stated in the previous draft. Adjusted earnings also exceeded the level for the same period last year, while the company recorded growth in income from continuing operations.
Textron's income from continuing operations was $1.56 per share, compared with $1.31 in the third quarter of 2025, while adjusted earnings rose from $1.55 to $1.76. The company raised its 2026 adjusted earnings outlook to $6.55–$6.65 per share, from a previous range of $6.40 to $6.60. It also raised its forecast for industrial cash flow before pension contributions to $800–$900 million, from $700–$800 million. The outlook revision reflects an improved estimate of what the company will record during the rest of the year, as segment results showed a split between growth in aviation and systems and a decline at Bell. The company said the update followed Congress's approval of a reprogramming request tied to the MV-75 Cheyenne program.
Textron Aviation posted quarterly revenue of $1.7 billion, up 14% or $201 million from the same period a year earlier. The company delivered 51 jets, compared with 42 in the third quarter of 2025. Textron attributed revenue growth to higher aircraft volume and mix, particularly Citation aircraft, alongside increased volume and pricing for parts and services. Chief Executive Lisa M. Atherton said higher jet deliveries, together with program execution at Textron Systems, contributed to double-digit revenue growth in both segments. Aviation performance was the main driver of the operational improvement cited by the company in its quarterly results.
By contrast, Bell revenue fell 9% to $933 million, down $93 million from a year earlier. Most of the decline came from a $59 million decrease in military revenue as MV-75 program volume fell; commercial helicopter, parts and services revenue declined by $34 million. Atherton said Bell made operational progress on the MV-75 Cheyenne program, despite the effect of lower program volume on quarterly revenue. The company linked its outlook update to Congress's approval of the reprogramming request related to the program and to contractual modifications requiring the associated funding. These developments put the program at the center of the explanation for the gap between Bell's current results and the improved full-year outlook.
Textron Systems revenue rose 16% to $360 million, supported by higher volume of armored land vehicles and military training and support services. On liquidity, net cash from operating activities for the manufacturing group was $512 million, compared with $348 million in the third quarter of 2025. Cash flow before pension contributions reached $418 million, compared with $281 million a year earlier, in line with the company's higher annual cash flow forecast. Textron repurchased $239 million of shares during the quarter, according to its earnings release. The company was scheduled to hold a call to discuss third-quarter results and its outlook on October 29, 2026, at 8:00 a.m. Eastern time.