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Textron beat Q2 earnings and revenue estimates, with adjusted EPS rising 4.5% year over year.
TXT saw higher Bell, Systems and Industrial sales, while Aviation backlog ended the quarter at $8 billion.
TXT reaffirmed 2026 adjusted EPS guidance of $6.40-$6.60 and began the Industrial segment sale process.
Textron Inc. (TXT - Free Report) reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported GAAP earnings of $1.42 per share compared with $1.35 a year ago.
TXT’s Revenues
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
Textron Aviation: Revenues from this segment increased 1% year over year to $1.5 billion. This was primarily due to higher pricing, partially offset by lower volume and mix.
The segment delivered 40 jets, down from 49 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 34 in the first quarter of 2025.
Order backlog at the end of the reported quarter totaled $8 billion.
Bell: Revenues from this segment amounted to $1.1 billion, up 6% from the year-ago quarter’s registered number. This was driven by a $47 million increase in military revenues, primarily reflecting higher production volumes for the H-1 program and the MV-75 program.
Bell delivered 36 commercial helicopters compared with 32 in the prior-year first quarter.
Its order backlog at the end of the quarter totaled $7.5 billion.
Textron Systems: This segment’s revenues amounted to $347 million, up $23 million from the prior-year level.
Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.
Industrial: Revenues from this segment increased $9 million to $848 million.
Finance: This segment’s revenues amounted to $14 compared with $15 million in the year-ago quarter.
During the quarter, the company initiated a sale process for the Industrial segment.
Textron’s Financials
As of July 4, 2026, cash and cash equivalents totaled $1.44 billion compared with $1.94 billion as of Jan. 3, 2026.
Net cash used in operating activities during the first six months of 2026 amounted to $128 million compared with $281 million in the year-ago period.
Capital expenditures amounted to $95 million in the second quarter compared with $78 million in the year-ago quarter.
The long-term debt totaled $3.11 billion as of July 4, 2026, compared with $3.53 billion as of Jan. 3, 2026.
TXT’s Guidance
The company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.60 per share, which is the high end of the company’s guided range.
RTX Corporation’s (RTX - Free Report) second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
RTX’s revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Backlog climbed 22% to $289 billion.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
LMT’s net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line improved 10.5% from $18.16 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s second-quarter sales of $10.88 billion beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
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Textron Q2 Earnings Outpace Estimates, Revenues Increase Y/Y
Key Takeaways
Textron Inc. (TXT - Free Report) reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported GAAP earnings of $1.42 per share compared with $1.35 a year ago.
TXT’s Revenues
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance of Textron
Textron Aviation: Revenues from this segment increased 1% year over year to $1.5 billion. This was primarily due to higher pricing, partially offset by lower volume and mix.
The segment delivered 40 jets, down from 49 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 34 in the first quarter of 2025.
Order backlog at the end of the reported quarter totaled $8 billion.
Bell: Revenues from this segment amounted to $1.1 billion, up 6% from the year-ago quarter’s registered number. This was driven by a $47 million increase in military revenues, primarily reflecting higher production volumes for the H-1 program and the MV-75 program.
Bell delivered 36 commercial helicopters compared with 32 in the prior-year first quarter.
Its order backlog at the end of the quarter totaled $7.5 billion.
Textron Systems: This segment’s revenues amounted to $347 million, up $23 million from the prior-year level.
Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.
Industrial: Revenues from this segment increased $9 million to $848 million.
Finance: This segment’s revenues amounted to $14 compared with $15 million in the year-ago quarter.
During the quarter, the company initiated a sale process for the Industrial segment.
Textron’s Financials
As of July 4, 2026, cash and cash equivalents totaled $1.44 billion compared with $1.94 billion as of Jan. 3, 2026.
Net cash used in operating activities during the first six months of 2026 amounted to $128 million compared with $281 million in the year-ago period.
Capital expenditures amounted to $95 million in the second quarter compared with $78 million in the year-ago quarter.
The long-term debt totaled $3.11 billion as of July 4, 2026, compared with $3.53 billion as of Jan. 3, 2026.
TXT’s Guidance
The company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.60 per share, which is the high end of the company’s guided range.
TXT’s Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release
RTX Corporation’s (RTX - Free Report) second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
RTX’s revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Backlog climbed 22% to $289 billion.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
LMT’s net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line improved 10.5% from $18.16 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s second-quarter sales of $10.88 billion beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.