The beat is modest and overshadowed by declining cash flow and jet delivery volumes. The Industrial sale process is a positive catalyst but execution risk remains. Watch the conference call for updates on MV-75 funding and the Industrial separation timeline — the $0.20-$0.30 EPS risk is material at current valuation.
Price Chart
Executive Summary
Textron reported Q2 2026 adjusted EPS of $1.62, beating consensus of $1.55 by 4.5%, on revenue of $3.827B (+3% YoY), slightly above the $3.81B estimate. The company reiterated full-year adjusted EPS guidance of $6.40-$6.60 and manufacturing cash flow of $700M-$800M, but flagged a $0.20-$0.30 EPS risk if additional MV-75 Cheyenne funding is not received. The Industrial segment sale process was initiated, a positive catalyst for the pure-play aerospace/defense thesis, but operating cash flow declined sharply to $235M from $395M a year ago, and Textron Aviation jet deliveries fell to 40 from 49, signaling margin pressure beneath the headline beat.
Key Financial Metrics
Key Facts
- Adjusted EPS $1.62 vs consensus $1.55 (4.5% beat)
- Revenue $3.827B vs consensus $3.81B, up 3% YoY
- Full-year adjusted EPS guidance reiterated at $6.40-$6.60
- Manufacturing operating cash flow fell to $235M from $395M YoY
- Textron Aviation jet deliveries dropped to 40 from 49 YoY
- Industrial segment sale process initiated
- MV-75 Cheyenne funding risk: $0.20-$0.30 EPS downside if not received
- Share repurchases of $209M in the quarter
Financial Impact
Adjusted EPS beat consensus by $0.07 (4.5%); revenue beat by ~$17M; operating cash flow declined $160M YoY; guidance unchanged but contingent on $150M-$250M funding risk
Risk Factors
- MV-75 Cheyenne funding not approved, reducing adjusted EPS by $0.20-$0.30 and cash flow by $150M-$250M
- Textron Aviation jet deliveries declining YoY signals potential demand or supply-chain headwinds
- Operating cash flow halved YoY, raising questions about working capital efficiency
- Industrial segment separation may face tax or regulatory hurdles
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000217346-26-000034 |
| Document: txt-20260728.htm | 0000217346-26-000034 |
| Document: 0000217346-26-000034-index-headers.html | 0000217346-26-000034 |
| Document: 0000217346-26-000034-index.html | 0000217346-26-000034 |
| Document: 0000217346-26-000034.txt | 0000217346-26-000034 |
| 8-K Data (Synthetic) | 0000217346-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 9w ago | 8-K | $89.96 $81.80 | ▼ −9.07% | ▼ −12.45% | $77.52 (−13.83%) |
Jul 22, 2026 10w ago | GOVT-CONTRACT | $91.71 $86.29 | ▼ −5.91% | ▼ −8.81% | $77.52 (−15.47%) |
Jun 3, 2026 17w ago | Court Ruling | $91.38 $92.50 | ▲ +1.23% | ▲ +2.48% | $77.52 (−15.17%) |
May 21, 2026 19w ago | GOVT-CONTRACT | $90.24 $86.76 | ▼ −3.86% | ▼ −4.19% | $77.52 (−14.10%) |
May 18, 2026 19w ago | Court Ruling | $90.59 $93.74 | ▲ +3.48% | ▲ +1.90% | $77.52 (−14.43%) |
May 18, 2026 19w ago | Court Ruling | $90.59 $93.74 | ▲ +3.48% | ▲ +1.90% | $77.52 (−14.43%) |
US Market Status
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