Analyst Consensus ?
ConsensusHold29 ratings
Bullish1344.8%
Neutral1655.2%
Bearish00.0%
Textron Inc. · TXT · FY2026 Q1 · Calendar Q2 2026
Textron Q1 2026: Revenue Up 12% as Industrial Separation and MV-75 Ramp Take Shape
Textron opened fiscal 2026 with a double beat — EPS of $1.45 vs. $1.30 consensus and revenue of $3.7B vs. $3.5B — driven by 12% top-line growth and 10% segment profit expansion. The quarter's strategic centerpiece is the planned separation of the Industrial segment into a standalone public company within 12-18 months, which would leave a pure-play Aerospace & Defense franchise anchored by Bell, Textron Aviation, and Textron Systems. The A&D backlog stands at $19.2B, and the Army's FY27-31 budget includes up to $3.8B for MV-75 Cheyenne procurement, giving the defense business growing visibility. Guidance was maintained this quarter, a step down from the raised outlook issued in Q4. The stock rallied 6.9% on the report but has since drifted 4.4% lower; at $87.09 it trades roughly 15% below the consensus price target of $102.75, reflecting the market's weighing of separation execution…
Reported Before market openNYSEIndustrials
$14.98B market cap
100quality score
Company context
Snapshot as of publicationTextron Inc. (TXT) is a diverse global enterprise with significant involvement in the aerospace, defense, industrial, and financial sectors. Its Textron Aviation division is responsible for the production, sale, and maintenance of a variety of aircraft, including corporate jets, turboprop and piston-engine planes, and military trainer and defense aircraft. This segment also delivers extensive maintenance, inspection, and repair services, alongside selling commercial aircraft components. The Bell segment stands as a primary provider of military and civilian helicopters, in addition to tiltrotor aircraft, supported by related spare parts and services. Textron Systems focuses on developing and supplying advanced unmanned aerial platforms, sophisticated electronic systems and solutions, specialized marine vessels, piston aircraft engines, realistic live military air-to-air and air-to-ship training systems, weaponry and associated components, and a range of armored and specialty vehicles.…
Earnings scorecard
Reported versus consensus
Reported EPS
$1.45
Consensus $1
EPS surprise
+11.5%
Reported versus consensus
Reported revenue
$3.69B
Consensus $3.50B
Revenue surprise
+5.5%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$87.09Previous close
$68Low
$96.46Average
$110High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Jul 31, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| TD Cowen | Hold | Hold | Maintain | Jul 13, 2026 |
| UBS | Neutral | Neutral | Maintain | May 4, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | May 4, 2026 |
| Jefferies | Buy | Buy | Maintain | Apr 7, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Apr 2, 2026 |
| Bernstein | Market Perform | Market Perform | Maintain | Feb 19, 2026 |
| Freedom Broker | Buy | Buy | Maintain | Oct 29, 2025 |
| Barclays | Overweight | Overweight | Maintain | Jul 29, 2025 |
| Susquehanna | Positive | Positive | Maintain | Jul 25, 2025 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jul 17, 2025 |
| Goldman Sachs | Neutral | Buy | Downgrade | Jul 1, 2025 |
| B of A Securities | Neutral | Buy | Downgrade | Jan 24, 2025 |
| Baird | Outperform | Outperform | Maintain | Jan 23, 2025 |
| Veritas Research | Hold | Buy | Downgrade | May 24, 2023 |
| Alembic Global | Neutral | Overweight | Downgrade | May 1, 2023 |
| Wolfe Research | Perform | Peer Perform | Maintain | Apr 6, 2023 |
| Credit Suisse | Neutral | Neutral | Maintain | Feb 14, 2022 |
| Cowen & Co. | Outperform | Market Perform | Upgrade | Aug 31, 2021 |
| Bank of America | Neutral | Buy | Downgrade | Oct 22, 2019 |
| Vertical Research | Hold | Buy | Downgrade | Sep 27, 2019 |
| Wells Fargo | Outperform | Outperform | Maintain | Oct 19, 2018 |
| Drexel Hamilton | Buy | Hold | Upgrade | Sep 11, 2017 |
| Stephens & Co. | Equal Weight | Equal Weight | Maintain | Apr 13, 2017 |
| Deutsche Bank | Hold | Hold | Maintain | Dec 5, 2016 |
| Nomura | Buy | Neutral | Upgrade | Mar 6, 2015 |
| Stifel Nicolaus | Buy | Hold | Upgrade | Sep 26, 2014 |
| Stifel | Buy | Hold | Upgrade | Sep 26, 2014 |
| RBC Capital | Outperform | Sector Perform | Upgrade | Jan 7, 2013 |
| Early Bird Capital | Buy | Buy | Maintain | Jul 19, 2012 |
Named analyst price targets
Upside is calculated against the persisted previous close $87.09. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Gavin Parsons | $95 | $89.96 | +9.1% | Jul 29, 2026 |
| Morgan Stanley | Kristine Liwag | $98 | $89.96 | +12.5% | Jul 29, 2026 |
| Morgan Stanley | Kristine Liwag | $97 | $89.5 | +11.4% | Jul 15, 2026 |
| UBS | Analyst unavailable | $100 | $92.78 | +14.8% | May 4, 2026 |
| Morgan Stanley | Analyst unavailable | $109 | $94.08 | +25.2% | May 4, 2026 |
| Bernstein | Douglas Harned | $108 | $100.25 | +24.0% | Feb 19, 2026 |
| Jefferies | Analyst unavailable | $110 | $88.06 | +26.3% | Feb 1, 2026 |
| Morgan Stanley | Kristine Liwag | $92 | $88.2 | +5.6% | Jan 29, 2026 |
| Susquehanna | Charles Minervino | $110 | $93.49 | +26.3% | Jan 15, 2026 |
| UBS | Analyst unavailable | $99 | $93.86 | +13.7% | Jan 15, 2026 |
| Jefferies | Analyst unavailable | $115 | $93.62 | +32.0% | Jan 15, 2026 |
| Bernstein | Analyst unavailable | $94 | $89.15 | +7.9% | Jan 6, 2026 |
| Bernstein | Douglas Harned | $90 | $80.48 | +3.3% | Oct 27, 2025 |
| UBS | Analyst unavailable | $89 | $79.88 | +2.2% | Oct 24, 2025 |
| Susquehanna | Charles Minervino | $90 | $75.6 | +3.3% | Jan 8, 2025 |
| Jefferies | Sheila Kahyaoglu | $100 | $81.77 | +14.8% | Oct 30, 2024 |
| Morgan Stanley | Kristine Liwag | $95 | $83.46 | +9.1% | Aug 8, 2024 |
| UBS | Gavin Parsons | $87 | $92.62 | -0.1% | Jul 19, 2024 |
| Goldman Sachs | Analyst unavailable | $93 | $70.17 | +6.8% | Dec 15, 2022 |
| Susquehanna | Analyst unavailable | $84 | $65.38 | -3.5% | Jul 29, 2022 |
| Barclays | Analyst unavailable | $85 | $70.02 | -2.4% | May 2, 2022 |
| Capital One Financial | Jonathan Raviv | $68 | $64.17 | -21.9% | Apr 30, 2021 |
Track every rating change on TXT the moment it posts. Free to start.
Start freeMarket reaction
prior-close to event-session close
Stock move
+6.9%
Event window
SPY move
+1.0%
Same window
Abnormal move
+5.9%
Stock minus SPY
Volume
3.3×
Versus trailing sessions
Subsequent drift
-4.4%
Up to 20 sessions
TXTSPY benchmark
Follow TXT with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeTranscript intelligence
What changed
Q1 revenue grew 12% to $3.7B with segment profit up 10% and adjusted EPS of $1.45, beating consensus estimates of $1.30 EPS and $3.5B revenue. Textron announced plans to separate its Industrial businesses into a standalone public company within 12-18 months, creating a pure-play A&D entity with roughly $12B in revenue. The Army's FY27-31 budget includes up to $3.8B for MV-75 Cheyenne procurement, accelerating the program toward prototype deliveries. A&D backlog stands at $19.2B, up from $7.7B total company backlog at year-end 2025. Kautex is supplying hybrid fuel tanks for Rivian R1 and a major European OEM, with production starting in 2027. Aftermarket revenue grew over 10% across both Aviation and Bell segments.
Guidance delta
Guidance was maintained this quarter, a step down from the raised outlook issued in Q4 FY2025. Management reaffirmed its 2026 outlook, including previously communicated revenue growth targets and the ~$650M capex projection (up from $267M in 2025) to fund MV-75 LRIP investments and supply-chain initiatives. The capex outlook is now described as stable rather than increasing, suggesting the elevated spending level is baselined rather than still climbing.
Key takeaways
- Q1 revenue grew 12% to $3.7B with segment profit up 10% and adjusted EPS of $1.45, beating consensus on both lines.
- Planned separation of Industrial businesses within 12-18 months would create a pure-play A&D company with roughly $12B in revenue.
- A&D backlog stands at $19.2B, providing significant revenue visibility for Bell, Aviation, and Systems.
- MV-75 Cheyenne program advancing toward prototype deliveries, supported by up to $3.8B in Army FY27-31 procurement funding.
- Aftermarket revenue grew over 10% across both Aviation and Bell segments.
Management priorities
- Execute the Industrial segment separation, exploring sale or spin-off options within 12-18 months.
- Scale MV-75 Cheyenne production and pursue additional Army programs including Flight School Next.
- Invest in supply-chain and factory efficiency to shorten lead times for high-demand aircraft.
- Expand Industrial battery and fuel-system offerings for EV and hybrid platforms (Pentatonic, Allegro).
- Leverage cross-segment engineering talent for AI-driven autonomy and unmanned systems.
Related earnings events
IndustrialsROL · FY2026 Q2 · Calendar Q3 2026Rollins Q2 2026: Revenue Misses as Digital Lead Slowdown Hits OrkinLUV · FY2026 Q2 · Calendar Q3 2026Southwest Airlines Q2 2026: EPS Beats by 84%, Unit Revenue Up 20%, Guidance Cut on FuelDOV · FY2026 Q2 · Calendar Q3 2026Dover Raises EPS Guidance but Shares Fall 8% on Revenue Miss and Refrigeration Issues
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T07:32:08.755250+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T07:32:08.752290+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.