Textron (TXT) shares fell about 4% in premarket trading Wednesday after the company issued 2026 guidance that trailed Wall Street expectations, overshadowing a fourth-quarter earnings and revenue beat.
The industrial conglomerate said it expects 2026 adjusted earnings of $6.40 to $6.60 a share, below the consensus estimate of $6.84. Textron (TXT) forecast 2026 revenue of about $15.5 billion, up from $14.8 billion in 2025.
For the fourth quarter, Textron (TXT) reported adjusted earnings of $1.73 a share, topping the Wall Street consensus of $1.70. Revenue rose 16% to $4.2 billion, beating estimates of $4.06 billion.
Net income rose to $235 million, or $1.33 a share, from $141 million, or $0.76 a share.
“2025 was a significant year of accomplishments as Textron (TXT) delivered strong revenue and profit growth,” Chief Executive Lisa Atherton said in the earnings announcement.
Segment pressure tempers outlook
Several negative items in the release weighed on investor sentiment. At Bell, segment profit fell $9 million to $101 million despite an 11% revenue increase, as lower commercial revenues partially offset gains tied to the U.S. Army’s MV-75 program. Textron (TXT) said it plans increased investment at Bell in 2026 to support acceleration of the MV-75 program, which will pressure cash flow.
Industrial results also softened. Industrial revenue fell $48 million to $821 million, and segment profit declined $18 million to $30 million due to higher selling and administrative costs and weaker volume and mix. Textron eAviation revenue slipped to $7 million from $11 million, and the segment posted a $15 million loss.
Textron (TXT) projected manufacturing cash flow before pension contributions of $700 million to $800 million for 2026, down from $969 million in 2025, reflecting the stepped-up MV-75 investment.
Aviation strength and capital returns
The quarter’s bright spot was Textron Aviation, where revenue jumped 36% to $1.7 billion on higher jet and turboprop deliveries. Segment profit more than doubled to $208 million, and backlog ended the quarter at $7.7 billion.
For the full year, Textron (TXT) posted adjusted earnings of $6.10 a share, up from $5.48 in 2024, and segment profit of $1.4 billion, up 14%. Textron (TXT) returned $187 million to shareholders in the quarter through share repurchases, bringing full-year buybacks to $822 million.
Atherton said Textron (TXT) sees strong demand and bookings entering 2026, even as the company absorbs higher program investments and mixed performance across its industrial businesses.