Textron rises after quarterly results beat expectations and outlook boost

What happened

Textron (TXT) rose 11.7% on October 29, 2026, because of third-quarter results that beat estimates and a raised full-year adjusted EPS and cash flow outlook. The company reported adjusted income from continuing operations of $1.76 per share against a Zacks consensus of $1.43, with income from continuing operations of $1.56 per share versus $1.31 in Q3 2025, according to Business Wire and Seeking Alpha.

How big was the move

The stock closed at $87.46 after opening 8.9% above the previous close and the session’s trading volume was 2.7 times its 20-day average. The move was 6.1 times a typical daily move for this stock, leaving Textron 10.3 percentage points better than the Industrials sector median, which rose 1.4% on the day. The S&P 500 fell 0.3% on the day and rose 0.7% over the last five sessions; Textron rose 12.1% over the last five sessions.

The technical picture

The stock traded 14.2% above its 20-day moving average and 11.4% above its 50-day moving average, while it remained 1.0% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) stood at 76, above 70, a level often called overbought. Textron is 13.9% below the 52-week high, has risen 14.8% over one month and 2.6% over three months, and is up 9.4% over one year, 2.6 percentage points behind the S&P 500. Volatility was 31% annualized over 60 days, higher than 79% of its own readings over five years.

Fundamentals and valuation

For the four quarters through October 3, 2026, Textron reported revenue of $15.45 billion, which grew 8.5% from a year earlier and compares with revenue growth of 8.8% one quarter earlier. Diluted earnings per share were $5.55, which rose 22.0% from a year earlier. Gross margin was 16.4% (a year earlier: 20.4%) while operating margin was 8.2% (a year earlier: 6.3%). Free-cash-flow margin was 5.2% and return on invested capital was 7.4%. The balance sheet showed net debt of 1.2 times EBITDA and share count over one year decreased by 3.7%.

On valuation metrics, the stock traded at 15.8 times trailing earnings and 13.6 times expected earnings, with a free-cash-flow yield of 6.1%. Its price to trailing earnings is lower than 95% of its own readings over the past five years, with a five-year median of 17.9 times earnings. That combination — below-historical price to earnings despite recent earnings growth — supports the PromtFinance Value score of 98 (Exceptional). PromtFinance ranks Growth 45 (Neutral), Quality 50 (Neutral), Momentum 53 (Neutral), Revisions 23 (Very weak) and Stability 76 (Positive), suggesting solid value characteristics but weaker recent analyst revision trends.

Earnings and analyst expectations

Textron reported on October 29, 2026, earnings per share of $1.76 against $1.43 expected, 23.1% above estimates. The company has beaten estimates for three consecutive quarters, with an average surprise over the last four reports of 2.2% above estimates. Typical two-day reactions after recent reports have seen the stock fell 0.3%. The next report is scheduled for January 27, 2027.

Analysts covering the stock have a consensus rating of Hold. The consensus price target is $90.50, which is 3.5% above the closing price of $87.46, based on 29 analysts with a rating and with 48% of those ratings either Buy or Strong Buy. With earnings momentum and a raised outlook driving the latest rally, the narrow gap between the consensus target and the market price points to modest upside from current levels.

What to watch

• October 29, 2026: adjusted income from continuing operations of $1.76 per share versus $1.43 expected and income from continuing operations of $1.56 per share versus $1.31 in Q3 2025
• Next report on January 27, 2027
• Consensus price target $90.50, 3.5% above the closing price
• Net debt of 1.2 times EBITDA and free-cash-flow margin 5.2%
• PromtFinance Value score 98 (Exceptional)