Textron Inc. (TXT) AI Stock Analysis

Textron Inc. operates across multiple sectors including aircraft, defense, industrial manufacturing, and finance. Its Textron Aviation segment manufactures, sells, and services business jets, turboprops, piston engine aircraft, and military trainers, alongside offering commercial parts and repair services. The Bell segment provides military and commercial helicopters, tiltrotor aircraft, and spare parts. Textron Systems supplies unmanned aircraft systems, electronic systems, marine craft, armored vehicles, and military training services. The Industrial segment produces plastic fuel systems for hybrid vehicles, clear-vision systems, and specialty vehicles such as golf cars and recreational vehicles.

Textron's revenue rose from $12.38B in FY2021 to $14.80B in FY2025, reflecting a 5-year revenue CAGR of 4.9%. Net income grew from $746.0M in FY2021 to $921.0M in FY2025, while diluted EPS increased from $3.30 to $6.11 over the same span. Operating margins moved from 7.0% in FY2021 to 6.8% in FY2025, after reaching 7.7% in FY2023. For the trailing twelve months ended June 30, 2026, revenue stood at $15.30B with an operating margin of 8.7% and EPS of $5.31. In the latest quarter, quarterly revenue grew 3.0% year-over-year, and quarterly earnings grew 5.2%.

As of June 30, 2026, Textron held $1.61B in cash and short-term investments against total debt of $3.81B, resulting in net debt of $2.20B. Shareholders' equity was $8.05B, yielding a debt-to-equity ratio of 0.47 and a current ratio of 1.86. In FY2025, operating cash flow reached $1.27B and free cash flow was $884.0M after capital expenditures of $384.0M. Textron allocated $1.08B to share buybacks and paid $19.0M in dividends in FY2025, reducing its share count by 22.8% over 5 years.

At $75.93 per share, Textron carries a market capitalization of $13.20B and an enterprise value of $15.41B. The stock trades at a trailing P/E of 14.3x and a forward P/E of 10.4x, both below the median of its S&P 500 Industrials peers at 28.5x and 20.7x, respectively. Its EV/EBITDA multiple of 9.1x is also lower than the peer group median of 17.7x. Over the past year, Textron's shares declined 6.9%, lagging the S&P 500 return of 16.8%, and its 5-year return of 3.2% trailed the benchmark return of 83.0%.

Textron pays an annual forward dividend of $0.08 per share, which corresponds to a dividend yield of 0.11% and a payout ratio of 1.3%. The company distributes dividends quarterly and has paid dividends for 43 consecutive years. Its 5-year annualized dividend growth rate is 0.0%, and the last ex-dividend date was September 11, 2026.

Wall Street analysts coverage includes 6 Strong Buy, 1 Buy, and 9 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target of $99.47 represents a 31.0% premium over the last close of $75.93. For FY2026 ending December 31, 2026, consensus estimates project revenue of $15.58B and EPS of $6.47, indicating 6.0% earnings growth. The company has beat EPS estimates in each of the last 4 quarters, and the next earnings date is October 29, 2026.

This page is an AI-written research summary of Textron Inc. (TXT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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