Strong Revenue Growth
Revenue grew 11.8% YoY to $3.70B in Q1 FY2026 from $3.31B in the prior-year period, indicating solid top-line momentum likely driven by defense and industrial segment demand.
Source: 10-Q Income Statement
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 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.
Revenue
$3.69B
+11.77% YoY
EPS (Diluted)
$1.25
+10.62% YoY
Source: SEC XBRL
Textron (TXT) reported Q1 FY2026 revenue of $3.69B, up 11.8% year over year. Operating cash flow was negative $117M. TXT's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.62 | 1.56 | Beat +3.7% |
| Mar 2026This filing | 1.45 | 1.32 | Beat +10.1% |
| Dec 2025 | 1.73 | 1.72 | Beat +0.5% |
| Sep 2025 | 1.55 | 1.47 | Beat +5.7% |
Adjusted (non-GAAP) EPS of $1.45 versus the $1.32 analyst consensus — a +10.1% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.25.
Compiled by AI from this SEC filing
Revenue grew 11.8% YoY to $3.70B in Q1 FY2026 from $3.31B in the prior-year period, indicating solid top-line momentum likely driven by defense and industrial segment demand.
Source: 10-Q Income Statement
Net income increased 6.3% to $220M and diluted EPS rose 10.6% to $1.25, with EPS growth outpacing net income growth due to share buybacks reducing the share count.
Source: 10-Q Income Statement
R&D expense declined 9.1% YoY to $120M from $132M, suggesting a shift in investment priorities or completion of certain development programs, which may affect long-term innovation pipeline.
Source: 10-Q Income Statement
SG&A expenses rose 7.7% YoY to $321M from $298M, growing faster than net income and indicating some margin pressure from higher selling and administrative costs.
Source: 10-Q Income Statement
Total assets grew 7.1% YoY to $18.14B, supported by a 10.0% increase in stockholders' equity to $8.00B, reflecting retained earnings accumulation and overall financial strengthening.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
TXT generated negative operating cash flow of -$117M in Q1 FY2026, though slightly improved from -$124M in the prior year. Sustained negative operating cash flow could pressure liquidity and limit financial flexibility if not reversed in subsequent quarters.
Source: 10-Q Cash Flow Statement
The debt-to-equity ratio stands at 1.27, meaning TXT carries more debt than equity. In a rising interest rate environment, this level of leverage could increase financing costs and constrain capital allocation options.
Source: 10-Q Balance Sheet / Key Ratios
R&D spending fell 9.1% YoY to $120M, which may signal reduced investment in future product development. For a defense and industrial conglomerate, sustained R&D cuts could weaken competitive positioning over the medium term.
Source: 10-Q Income Statement
Investing cash flow swung to -$104M from nearly flat -$1M in the prior year, a 10,300% increase in outflows. This significant capital deployment warrants monitoring to ensure acquisitions or capital expenditures generate adequate returns.
Source: 10-Q Cash Flow Statement
ROE of 2.75% and ROA of 1.21% are relatively low, suggesting TXT is generating modest returns on its asset base and equity. Net margin of 5.95% leaves limited buffer against cost increases or revenue shortfalls.
Source: 10-Q Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.70 $B | 3.31 $B | +11.77% |
Net Income $M | 220.00 $M | 207.00 $M | +6.28% |
EPS (Basic) $ | 1.26 $ | 1.14 $ | +10.53% |
EPS (Diluted) $ | 1.25 $ | 1.13 $ | +10.62% |
R&D Expense $M | 120.00 $M | 132.00 $M | -9.09% |
SG&A Expense $M | 321.00 $M | 298.00 $M | +7.72% |
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 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.
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