Textron Inc. (TXT) Earnings
Textron Inc. is expected to report next earnings on October 22, 2026 (in NaN days), with a consensus EPS estimate of $1.52. TXT has beaten EPS estimates in 9 of its last 12 reported quarters (average surprise +5.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 28, 2026 | $1.55 | $1.62 | +4.2% | $3.8B | +0.5% |
| Apr 30, 2026 | $1.30 | $1.45 | +11.3% | $3.7B | +5.8% |
| Jan 28, 2026 | $1.73 | $1.73 | -0.1% | $4.2B | +18.0% |
| Oct 23, 2025 | $1.46 | $1.55 | +6.3% | $3.6B | -2.5% |
| Jul 24, 2025 | $1.45 | $1.55 | +6.8% | $3.5B | -3.1% |
| Apr 24, 2025 | $1.14 | $1.28 | +12.2% | $3.1B | -3.4% |
| Jan 22, 2025 | $1.28 | $1.34 | +4.6% | $3.9B | +3.6% |
| Oct 24, 2024 | $1.50 | $1.40 | -6.5% | $3.3B | -4.0% |
| Jul 18, 2024 | $1.49 | $1.54 | +3.3% | $3.4B | -3.4% |
| Apr 25, 2024 | $1.24 | $1.20 | -2.8% | $3.0B | -7.7% |
| Jan 24, 2024 | $1.53 | $1.60 | +4.8% | $3.6B | -7.1% |
| Oct 26, 2023 | $1.27 | $1.49 | +17.2% | $3.1B | -10.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 28, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Corporate Strategic Priorities - **Portfolio focus**: Moving toward becoming a pure-play aerospace and defense company via separation of the industrial segment; the sale process for the industrial segment has been initiated with strong inbound interest, while a spin-off remains a backup path. - **Execution and resilience**: Addressing unmet strong customer demand and multi-year backlogs by improving productivity, both internally (workforce development) and externally (supply chain improvements). ### Textron Aviation Operational Highlights - Attrition has returned to pre-COVID normalized levels, particularly for early-career hires, after spiking during the pandemic, aided by investment in the Textron Aviation Career and Learning Center. - Increased on-floor engineering support to improve producibility, added targeted capacity for landing gear, milling, and paint operations, and launched dual-sourcing initiatives for key components to improve supply chain resiliency. - Product development progress: CJ4 Gen 3 and M2 Gen 3 light jets are in flight testing, CJ3 Gen 3 is on track for first flight in Q3 2026, all three are expected to enter service in 2027; Denali is in final flight testing, on track to enter service in 2027. New large fleet orders for Citation Longitude were secured in Europe, and the global service footprint was expanded with a new Melbourne facility. ### Bell Operational Highlights - MV-75 Cheyenne program: Completed first two wing structures, with 90% fewer labor hours for the first wing vs. the initial V-22 wing build, and an additional 40% reduction for the second wing, demonstrating progress on affordability and production readiness. - Rolled out an AI-enabled shop floor scheduling tool across fabrication centers after successful testing. Secured a new order for three additional Bell 407 helicopters from Life Flight Network. Increased 36 commercial helicopter deliveries YoY (from 32 to 36). ### Textron Systems & Industrial Operational Highlights - Textron Systems: Secured a new business award for Pentatonic battery systems, supporting electrification and future growth. Core E-Z-GO golf business has stabilized as the lease renewal cycle normalizes. - Both segments continue normal operations while supporting the industrial separation process.
Guidance
- Management reaffirms full-year 2026 adjusted earnings per share guidance in the range of $6.40 to $6.60, and full-year manufacturing cash flow before pension contributions in the range of $700 million to $800 million. - Full-year guidance assumes receipt of the requested $350 million in additional FY2026 funding for the MV-75 Cheyenne program. If the funding is not received, adjusted EPS is expected to be negatively impacted by $0.20 to $0.30, and manufacturing cash flow before pension contributions is expected to be negatively impacted by $150 million to $250 million. - Q3 2026 revenue for Textron Aviation is expected to follow a similar profile to Q2 2026, with margin growth not expected until Q4 2026. Full-year Textron Aviation margins are expected to land at the low end of the 11% to 12% target range. - Medium-term operational improvements at Textron Aviation are expected to unlock approximately $150 million in incremental profit, equal to 200 basis points of margin expansion, with 20% to 25% incremental margins on these gains. Productivity-driven delivery growth is targeted to begin showing material improvement by the second half of 2027.
Segment performance
1. Textron Aviation: Revenue of $1.5 billion, up 1% ($22 million) year-over-year (YoY), accounting for ~39.5% of total Q2 2026 revenue. Segment profit was $165 million, down 3% ($5 million) YoY, driven by manufacturing inefficiencies and lower volume/mix, partially offset by lower warranty costs. End-of-quarter backlog was $8 billion. 2. Bell: Revenue of $1.1 billion, up 6% ($58 million) YoY, representing ~28.9% of total Q2 revenue. Segment profit was $75 million, down 6% ($5 million) YoY, due to unfavorable program performance and military program mix, partially offset by lower R&D costs. End-of-quarter backlog was $7.5 billion. 3. Textron Systems: Revenue of $347 million, up 7% ($23 million) YoY, accounting for ~9.1% of total Q2 revenue. Segment profit was $44 million, up 10% ($4 million) YoY, primarily driven by lower R&D costs. End-of-quarter backlog was $3.3 billion. 4. Industrial: Revenue of $848 million, up $9 million YoY, representing ~22.3% of total Q2 revenue. Segment profit was $59 million, up 9% ($5 million) YoY, driven by higher net pricing, partially offset by lower volume/mix. 5. Finance: Revenue of $14 million (down $1 million YoY), segment profit of $10 million (up $2 million YoY).
Risks & headwinds
- Textron Aviation still faces residual supply chain pain points for key components, and 50% of its current manufacturing workforce has less than five years of experience (compared to <30% in 2019), creating ongoing productivity drag that will take time to resolve as the workforce seasons. - The $350 million FY2026 above-threshold reprogramming request for the MV-75 Cheyenne program is still pending congressional approval, with a decision not expected until September 2026. While the Army has robust funding for the program in the FY2027 budget, delayed approval creates near-term self-funding requirements for Textron. - If the US government enters a continuing resolution for FY2027, Textron will need to operate MV-75 development at conservative spending levels while the budget process is finalized, though the program is adequately funded for the first six months of FY27. - Current industrial segment sale discussions are in early stages, and there is uncertainty around whether the segment will be sold as a single entity or in parts, or if a sale will be completed at all (with a spin-off as a backup plan).
Analyst Q&A
Q: An analyst asked for an update on Textron Aviation's second-half performance and the timeline for alleviating remaining supply chain and operational issues. /
A: Management noted that attrition has stabilized, but 50% of the workforce has less than five years of experience, so workforce seasoning will take time. Concrete investments including the Career and Learning Center, increased on-floor engineering support, cross-segment supply chain coordination, and dual-sourcing for key components are driving improvement. Q3 revenue will match Q2's profile, with margin growth not expected until Q4, and the medium-term improvement opportunity is ~$150 million in incremental profit.
Q: An analyst asked for clarification on MV-75's funding process, spending limits, and whether this reprogramming risk will be a recurring issue. /
A: Management explained that the ATR request is a one-time event caused by a schedule acceleration after the FY26 budget was submitted, with full funding already planned in the FY27 and future budgets. Textron is capping self-funded spending at the $350 million requested amount through September, and is continuing program progress without slowing the supply chain, with adequate funding for the first six months of FY27 even if a continuing resolution is passed.
Q: An analyst asked if selling the entire industrial segment is the most likely path compared to spinning it off. /
A: Management confirmed the company is pursuing a dual path: the sale process is active with significant inbound interest, which has been encouraging. The company is evaluating both offers for the full industrial segment and offers for individual parts of the segment, while continuing to prepare for a spin if a sale does not materialize.
Q: An analyst asked how much of Textron Aviation's 200 basis point expected margin improvement depends on external supply chain improvements versus internal productivity changes. /
A: Management stated that the gain is a roughly 50-50 split between internal improvements (workforce training, producibility engineering) and external supply chain improvements. The company is driving control over external issues via dual-sourcing for key components, so it is actively working to shape outcomes rather than relying solely on external suppliers to resolve issues.
Q: An analyst asked about Textron's strategic approach to leveraging its existing capabilities for higher-end unmanned aerial systems, as the company becomes a pure-play aerospace and defense firm. /
A: Management acknowledged the opportunity, noting that becoming a pure-play firm will enable more cross-portfolio engineering collaboration to combine existing capabilities for UAS. Textron is specifically focused on higher-end (Group 3/4) UAS, where it can leverage its existing platform and technology assets, rather than smaller, lower-margin systems.