Textron (NYSE:TXT) Shares Gap Down on Disappointing Earnings

Shares of Textron Inc. (NYSE:TXT) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $94.23, but opened at $90.53. Textron shares last traded at $85.9350, with a volume of 2,854,860 shares traded.

The aerospace company reported $1.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.74 by ($0.01). Textron had a return on equity of 14.63% and a net margin of 6.22%.The company had revenue of $4.18 billion for the quarter, compared to analysts’ expectations of $4.11 billion. During the same period last year, the company posted $1.34 EPS. The business’s revenue for the quarter was up 15.6% on a year-over-year basis. Textron has set its FY 2026 guidance at 6.400-6.600 EPS.

Key Headlines Impacting Textron

Here are the key news stories impacting Textron this week:

• Positive Sentiment: Q4 fundamentals showed revenue strength and aviation momentum — sales rose ~15.6% year/year to $4.17B and management highlighted strong aftermarket and aircraft demand, supporting the company’s longer‑term growth thesis. Textron Reports Fourth Quarter 2025 Results
• Positive Sentiment: Value case highlighted by research services — Zacks published analysis framing TXT as a strong value stock based on style scores, which can attract value-oriented buyers at current levels. Zacks: Here’s Why Textron is a Strong Value Stock
• Positive Sentiment: JPMorgan nudged its price target slightly higher (to $90) while keeping a neutral rating — a modest vote of confidence that supports near-term upside sentiment. Benzinga: JPMorgan Raises Price Target
• Neutral Sentiment: Several firms kept Hold ratings with mixed targets (UBS $99, BofA $90, TD Cowen $95) — analysts see balanced risk/reward: solid aviation trends offset by margin, capex and portfolio uncertainties. TipRanks: UBS Hold Rationale
• Neutral Sentiment: Citigroup lowered its price target (from $107 to $97) but retained a neutral rating — reduces upside runway per that shop but keeps stock in a “hold” bucket. Benzinga: Citigroup Lowers PT
• Negative Sentiment: Management set FY 2026 EPS guidance at $6.40–$6.60, below the consensus (~$6.77) — the more conservative outlook triggered volatility and investor concern about near‑term margins and cash flow. Reuters: Profit Forecast Lags
• Negative Sentiment: Q4 adjusted EPS of $1.73 missed estimates by $0.01 and the soft 2026 profit outlook sparked a sharp near‑term selloff in prior sessions — heightening short‑term risk despite solid top‑line trends. Fool: Why Textron Wilted

Analyst Ratings Changes

A number of brokerages recently issued reports on TXT. Freedom Capital upgraded Textron to a “strong-buy” rating in a research report on Friday, January 16th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $115.00 price target on shares of Textron in a report on Thursday, January 15th. TD Cowen decreased their price objective on shares of Textron from $95.00 to $90.00 and set a “hold” rating on the stock in a research report on Friday, October 24th. JPMorgan Chase & Co. lifted their target price on shares of Textron from $88.00 to $90.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, UBS Group boosted their price target on shares of Textron from $89.00 to $99.00 and gave the stock a “neutral” rating in a research note on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Textron presently has a consensus rating of “Hold” and an average price target of $97.70.

Institutional Trading of Textron

Institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC raised its holdings in Textron by 144.1% during the 2nd quarter. AQR Capital Management LLC now owns 2,664,612 shares of the aerospace company’s stock valued at $213,942,000 after buying an additional 1,573,206 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Textron during the second quarter valued at about $66,446,000. Adage Capital Partners GP L.L.C. boosted its holdings in shares of Textron by 270.7% during the second quarter. Adage Capital Partners GP L.L.C. now owns 1,005,843 shares of the aerospace company’s stock worth $80,759,000 after purchasing an additional 734,478 shares during the period. Balyasny Asset Management L.P. bought a new stake in shares of Textron in the third quarter worth about $56,255,000. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Textron by 62.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,231,492 shares of the aerospace company’s stock worth $98,876,000 after purchasing an additional 471,274 shares during the last quarter. Hedge funds and other institutional investors own 86.03% of the company’s stock.

Textron Stock Performance

The company has a current ratio of 1.82, a quick ratio of 0.86 and a debt-to-equity ratio of 0.45. The business has a fifty day moving average of $88.58 and a 200-day moving average of $83.99. The company has a market cap of $15.49 billion, a PE ratio of 17.20, a P/E/G ratio of 1.30 and a beta of 1.00.

About Textron

Textron Inc is a global, multi-industry manufacturing company headquartered in Providence, Rhode Island. The company designs, manufactures and services a diverse range of products for the aerospace, defense and industrial markets. Textron operates through four primary business segments—Textron Aviation, Bell, Textron Systems and Industrial—each of which serves customers around the world.

Textron Aviation is known for its Cessna and Beechcraft branded business jets and turboprop aircraft, offering models that range from light jets and turboprops to larger cabin aircraft designed for corporate and charter use.