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Why Textron Stock Wilted by Nearly 8% on Wednesday

By Eric Volkman | January 28, 2026, 7:27 PM

Key Points

On Wednesday, Textron (NYSE: TXT) unveiled its final set of financials for 2025. To say this wasn't greeted warmly by investors is understating the case; those folks reacted by aggressively selling out of the stock to leave it with an almost 8% loss that trading session.

Soaring after the strike

Textron's fourth quarter of 2025 saw the company lift its revenue by 16% to just under $4.18 billion, although this isn't as impressive as it first appears -- the year-ago figure was negatively affected by a month-long strike centered at a company facility in Kansas.

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As for profitability, Textron's net income not in accordance with generally accepted accounting principles (GAAP) also increased, rising 24% to $307 million ($1.73 per share).

On average, analysts tracking Textron were modeling $4.1 billion for revenue and $1.73 per share for net income.

In its earnings press release, Textron attributed its growth to recovery from the strike and strength in its Bell helicopter unit which, for the second quarter in a row, clocked 20% revenue growth from military clients.

Unhappy about guidance

Textron also proffered guidance for full-year 2026. The company believes it will earn around $15.5 billion, which would be nearly 5% higher than the 2025 tally. Adjusted net income should come in at $6.40 to $6.60 per share; the previous year's figure was $6.10.

Investors tend to trade stocks based on future potential rather than past performance. Given that, they were likely discouraged by the fact that the bottom-line guidance range is below the average analyst projection of $6.84. The consensus pundit projection for 2026 revenue is $15.46 billion.

I feel that the market is a bit too concerned about the miss on profitability guidance. Textron continues to grow its business, even if the latest figures are from a relatively low base, and its recent success in the military segment is encouraging. I wouldn't necessarily be a seller of the stock these days.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy.

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