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Why Is Textron (TXT) Down 2.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Textron (TXT - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Textron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Textron Inc. 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.
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 second 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 second 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 million 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.25% due to these changes.
VGM Scores
At this time, Textron has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Textron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Textron belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, GE Aerospace (GE - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
GE reported revenues of $12.63 billion in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $2.02 for the same period compares with $1.66 a year ago.
GE is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +19.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
GE has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Why Is Textron (TXT) Down 2.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Textron (TXT - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Textron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Textron Q2 Earnings Outpace Estimates, Revenues Increase Y/Y
Textron Inc. 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.
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 second 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 second 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 million 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.25% due to these changes.
VGM Scores
At this time, Textron has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Textron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Textron belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, GE Aerospace (GE - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
GE reported revenues of $12.63 billion in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $2.02 for the same period compares with $1.66 a year ago.
GE is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +19.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
GE has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.