Textron Inc. (NYSE:TXT) stock fell Wednesday after the company reported below-consensus fiscal 2026 earnings guidance.

Details

Sales grew to $4.175 billion from $3.613 billion a year ago quarter, beating the consensus of $4.098 billion.

Adjusted EPS stood at $1.73, which exceeded the street view of $1.70.

For fiscal 2025, the operating cash flow of the manufacturing group was 1.3 billion. As of January 3, cash and cash equivalents stood at $1.94 billion.

In the fourth quarter, Textron repurchased shares worth $187 million, resulting in 2025 share repurchases of $822 million.

Segment Performance

Textron Aviation’s revenues stood at $1.7 billion, up 36% year over year (Y/Y), led by increased aircraft revenues of $400 million and higher aftermarket parts and services revenues of $67 million. Textron Aviation’s backlog came in at $7.7 billion. 

Bell revenues stood at $1.3 billion, up 11% Y/Y, on higher military revenues of $139 million, mainly led by higher volume on the U.S. Army’s MV-75 program. Bell backlog stood at $7.8 billion.

Textron Systems’ revenue rose 4% Y/Y to $323 million, thanks to higher volume. Meanwhile, Industrial revenues stood at $821 million (down $48 million Y/Y) in the quarter.

FY26 Outlook

Textron expects adjusted EPS of $6.40-$6.60 (versus consensus of $6.84) and revenue of $15.50 billion, up from $14.8 billion in 2025.

The company expects the manufacturing group to generate $1.3–$1.4 billion in operating cash flow, with manufacturing cash flow before pension contributions of $700–$800 million.

Planned pension contributions are about $50 million. The outlook reflects higher investment at Bell to accelerate the MV-75 program, which is weighing on near-term cash flow.

Management Commentary

CEO Lisa M. Atherton said, “Aviation completed three certification programs while significantly growing revenue as it recovered from the strike in 2024. Bell demonstrated a second consecutive year of 20% growth in military revenues as the MV-75 program continues to accelerate. Systems secured key wins, positioning the business for growth. Industrial streamlined the portfolio with the divestiture of the Powersports business.”

“As we move into 2026, our momentum remains strong supported by significant bookings, healthy demand across our markets, continued program execution, and ongoing operational improvements,” Atherton added. “We are well positioned to continue investing in our products and capabilities to drive growth and long-term value for our shareholders.”

TXT Price Action: Textron shares were down 3.96% at $90.50 during premarket trading on Wednesday, according to Benzinga Pro data.

Photo by Piotr Swat via Shutterstock