It has been about a month since the last earnings report for Textron (TXT). Shares have added about 12.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Textron due for a pullback? 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 catalysts.
Textron Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Textron Inc. reported fourth-quarter 2025 adjusted earnings of $1.73 per share, which missed the Zacks Consensus Estimate of $1.74 by 0.8%. However, the bottom line rose 29.1% from $1.34 in the year-ago quarter.
The company reported GAAP earnings of $1.33 per share compared with 76 cents a year ago.
For 2025, the company reported adjusted earnings of $6.10 per share compared with $5.48 a year ago.
TXT’s Revenues
The company reported total revenues of $4.18 billion, which beat the Zacks Consensus Estimate of $4.14 billion by 0.8%. The top line also increased 15.7% from the year-ago quarter’s level of $3.61 billion.
For 2025, the company reported revenues of $14.8 billion compared with $13.7 billion last year.
Segmental Performance of Textron
Textron Aviation: Revenues from this segment increased 36% year over year to $1.7 billion. This was primarily due to higher volume and mix largely reflecting higher Citation jet and commercial turboprop volume as TXT recovered from the strike in late 2024.
The segment delivered 49 jets, up from 32 in the year-ago quarter. It also delivered 43 commercial turboprops, up from 38 in the third quarter of 2024.
Order backlog at the end of the quarter totaled $7.7 billion.
Bell: Revenues from this segment amounted to $1.3 billion, up 11% from the year-ago quarter’s registered number. This was due to higher volume on the U.S. Army's MV-75 program, partially offset by lower commercial revenues of $11 million, reflecting the mix of aircraft sold in the period, partially offset by higher pricing.
Bell delivered 78 commercial helicopters, flat year over year.
Its order backlog at the end of the quarter totaled $7.8 billion.
Textron Systems: This segment’s revenues amounted to $323 million, up $12 million from the prior-year level.
Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.
Industrial: Revenues from this segment declined $48 million to $821 million due to the impact of the divestiture of the Powersports business.
Textron eAviation: Revenues from the segment totaled $7 million, lower than the prior-year period’s level of $11 million.
Finance: This segment’s revenues amounted to $18 million compared with $11 million in the year-ago quarter.
Textron’s Financials
As of Jan. 3, 2026, cash and cash equivalents totaled $1.94 billion compared with $1.39 billion as of Dec. 28, 2024.
Cash generated from operating activities in 2025 amounted to $1.33 billion compared with $1.01 billion last year.
Capital expenditures amounted to $383 million (as of Jan. 3, 2026) compared with $364 million last year.
The long-term debt totaled $3.53 billion as of Jan. 3, 2026, compared with $2.89 billion as of Dec. 28, 2024.
TXT’s Guidance
Textron expects 2026 revenues of approximately $15.5 billion.
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 $6.67 per share, which lies above 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 -6.07% due to these changes.
VGM Scores
Currently, Textron has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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 is part of the Zacks Aerospace - Defense industry. Over the past month, Northrop Grumman (NOC), a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended December 2025 more than a month ago.
Northrop Grumman reported revenues of $11.71 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $7.23 for the same period compares with $6.39 a year ago.
For the current quarter, Northrop Grumman is expected to post earnings of $6.09 per share, indicating a change of +0.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Northrop Grumman. Also, the stock has a VGM Score of A.
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Textron Inc. (TXT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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