$TXT · TEXTRON INC
Textron filed its Q3 FY2026 10-Q, reporting net income of $270M ($1.56 diluted EPS) on revenue of $3.751B, up 4% YoY. Textron Aviation led with 14% revenue growth on higher Citation jet deliveries (51 vs 42). Nine-month revenue reached $11.273B (+6% YoY) with net income of $738M. Gross margin at manufacturing slipped 20 bps to 17.4%.
- Q3 diluted EPS of $1.56 vs $1.31 a year ago, a 19% increase.
- Q3 revenue rose 4% to $3.751B, driven by Textron Aviation's 14% jump to $1.68B.
- Citation jet deliveries climbed to 51 units from 42; commercial turboprops fell to 32 from 39.
- Nine-month operating cash flow held flat at $613M despite a $563M inventory build.
- Share count dropped ~3.6% YoY to 172.5M diluted shares, amplifying EPS growth.
Shares surged 13.48% to $88.88, adding roughly $1.8B in market cap on the $15.29B company. The reaction reflects a clean beat driven by Citation jet volume and margin resilience in the core Aviation segment.
A 19% EPS jump on surging business-jet deliveries and aggressive buybacks makes this a standout quarter in a mixed industrial earnings season.
Textron Aviation's 14% revenue growth and 51 Citation deliveries underscore strong business-jet demand, outpacing peers in the light-to-midsize jet market. Bell's military revenue decline contrasts with broader defense-sector tailwinds.
Bell segment revenues fell $93M (down from prior year) on lower military and commercial rotorcraft demand. Inventory build of $563M in nine months signals potential working-capital pressure if deliveries slow.