Textron (TXT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 4.1% to $3.751B; adjusted EPS increased to $1.76 from $1.55, while segment profit was $355M versus $360M.

• Manufacturing cash flow before pension contributions increased to $418M from $281M; FY 2026 adjusted EPS and cash flow outlooks rose.

Financial highlights

• Net income was $270M versus $234M, and diluted EPS was $1.56 versus $1.31; adjusted income from continuing operations was $303M versus $277M.

• Income from continuing operations before taxes was $322M versus $316M; consolidated segment profitability was 9.5%, down from 10.0%.

• Manufacturing cash flow before pension contributions was $418M for Q3 and $344M for nine months, versus $281M and $459M in 2025.

• Nine-month revenue rose 6% to $11.273B; net income was $738M versus $686M and diluted EPS was $4.23 versus $3.79.

Outlook and guidance

• FY 2026 adjusted EPS outlook increased to $6.55–$6.65 from $6.40–$6.60; GAAP EPS outlook increased to $5.64–$5.74 from $5.39–$5.59.

• FY 2026 manufacturing cash flow before pension contributions outlook rose to $800M–$900M from $700M–$800M, partly reflecting lower expected CapEx and Aviation order deposits.

• FY total margin guidance remained 11%–12%; Q4 improvement was expected mainly from turboprop volume and mix, with jet deliveries expected to have a similar profile.

• If the MV-75 LRIP option is awarded in 2027, an unfavorable cumulative catch-up adjustment of $110M–$150M is expected, contingent on award timing, schedule and funding; the program is still expected to be profitable afterward.

• Industrial separation remained on the 12–18-month timeline communicated in April.