Earnings call transcript: Textron beats Q3 2026 estimates, lifts outlook

Textron reported stronger-than-expected third-quarter 2026 results on Tuesday, beating Wall Street estimates for both adjusted earnings per share and revenue. The company lifted its full-year profit and cash flow outlook, boosting shareholder confidence and sending the stock up 4.72% in premarket trading to $82.02 from the previous close of $78.32.

Adjusted earnings per share rose to $1.76, up 13.5% from $1.55 a year earlier, surpassing estimates of $1.43. Revenue for the quarter came in at $3.8 billion, a 4% increase year over year, outpacing the forecast of $3.77 billion.

Full-year adjusted EPS guidance was raised to $6.55 to $6.65, up from the previous range of $6.40 to $6.60. Manufacturing cash flow guidance was increased to $800 million to $900 million, up from $700 million to $800 million.

The aviation segment led the growth story, with revenue up 14% to $1.7 billion and segment profit at $179 million. Textron Systems also saw a 16% revenue increase to $360 million. However, the Bell segment faced a 9% decline in revenue to $933 million and lower profit.

Overall, Textron's commercial and defense businesses continue to benefit from strong demand, while some programs remain uneven. The quarter's results pointed to broad strength across Textron's portfolio, led by strong performance in Textron Aviation and gains in Textron Systems and Industrial.