Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
TXT delivered solid FY2025 results with revenue growing 8.0% to $14.8B and net income rising 11.8% to $921M, supported by a 29.4% surge in operating cash flow to $1.3B.
Revenue
$14.8B
+8.01% YoY
EPS (Diluted)
$5.11
+18.01% YoY
Source: SEC XBRL
Textron (TXT) reported FY2025 revenue of $14.8B, up 8.0% year over year. Operating cash flow was $1.31B, up 29.4% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.62 | 1.56 | Beat +3.7% |
| Mar 2026 | 1.45 | 1.32 | Beat +10.1% |
| Dec 2025This filing | 1.73 | 1.72 | Beat +0.5% |
| Sep 2025 | 1.55 | 1.47 | Beat +5.7% |
Reported EPS of $1.73 versus the $1.72 analyst consensus — a +0.5% beat for Dec 2025.
Compiled by AI from this SEC filing
TXT grew total revenue by 8.0% year-over-year from $13.7B to $14.8B in FY2025, reflecting broad-based demand strength across its diversified industrial and aerospace segments.
Source: 10-K Income Statement (XBRL Financial Data)
Net income increased 11.8% to $921M, while diluted EPS rose 18.0% to $5.11, outpacing revenue growth and indicating meaningful operating leverage and share count reduction from buybacks.
Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow surged 29.4% to $1.31B from $1.01B in the prior year, demonstrating improved working capital management and earnings quality well above net income levels.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
TXT returned $840M to shareholders via $822M in share buybacks and $18M in dividends, though buyback activity declined 26.7% year-over-year, while investing outflows moderated to $207M.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
R&D spending rose 6.1% to $521M and SG&A grew a modest 1.5% to $1.17B, reflecting continued innovation investment while maintaining cost discipline on overhead.
Source: 10-K Income Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
As a major aerospace and defense contractor, TXT is heavily reliant on U.S. government defense spending. Any reduction in defense appropriations, continuing resolutions, or contract cancellations could materially impact revenue and backlog. Shifts in government procurement priorities represent a persistent risk.
Source: 10-K Risk Factors (inferred from business profile and financial data)
TXT's manufacturing operations across Bell, Textron Aviation, and industrial segments are exposed to raw material cost inflation and supply chain disruptions. Elevated costs could compress margins if not offset by pricing adjustments or productivity gains. The company's net margin of 6.2% leaves limited buffer against cost shocks.
Source: 10-K Income Statement (XBRL Financial Data)
With a debt-to-equity ratio of 1.30 and total liabilities of $10.25B against equity of $7.88B, TXT carries meaningful financial leverage. Rising interest rates could increase borrowing costs and constrain financial flexibility for future investments or acquisitions.
Source: 10-K Balance Sheet (XBRL Financial Data)
TXT operates complex, long-cycle aerospace and defense programs where cost overruns, schedule delays, or technical failures can result in significant financial penalties and reputational damage. Fixed-price contracts in particular expose the company to margin erosion if execution falls short.
Source: 10-K (inferred from business profile and financial data)
Textron Aviation's business jet and turboprop sales are sensitive to macroeconomic cycles, corporate spending, and business confidence. An economic slowdown could reduce order intake and pressure revenues in this segment, which represents a meaningful portion of total sales.
Source: 10-K (inferred from business profile and financial data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 14.80 $B | 13.70 $B | +8.01% |
Net Income $M | 921.00 $M | 824.00 $M | +11.77% |
EPS (Basic) $ | 5.15 $ | 4.38 $ | +17.58% |
EPS (Diluted) $ | 5.11 $ | 4.33 $ | +18.01% |
R&D Expense $M | 521.00 $M | 491.00 $M | +6.11% |
SG&A Expense $B | 1.17 $B | 1.16 $B | +1.47% |
Answers draw on this SEC filing and the data on this page
TXT delivered 3% revenue growth to $3.827B and 1% net-income growth to $248M in Q2 FY2026, but manufacturing gross margin fell 100 basis points to 17.8% and Bell faces material MV-75 funding and contract-cost risks. Source: 10-Q Item 2 MD&A, p.21-24.
TXT reported Q1 FY2026 revenue of $3.70B, up 11.8% YoY, with net income rising 6.3% to $220M and diluted EPS of $1.25, though operating cash flow remained negative at -$117M.
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