Textron Inc. (TXT) is a diversified U.S. aerospace, defense and industrial company headquartered in Providence, Rhode Island. The company operates across aircraft, defense, industrial and finance businesses, with well-known brands including Bell, Cessna, Beechcraft, Textron Systems, E-Z-GO and Lycoming. Textron has a market cap of $14.8 billion, placing it among the large-cap names.
TXT shares have underperformed the broader market over the past year and in 2026. TXT has grown 8.3% over the past 52 weeks and declined 1% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has surged 20.2% over the past year and 12.6% in 2026.
Narrowing the focus, TXT has also lagged behind the State Street Industrials Select Sector SPDR ETF’s (XLI) 20.2% rise over the past 52 weeks and its 17.3% increase this year.
Textron stock is seeing weakness in 2026 mainly because investors have become concerned about weaker-than-expected earnings prospects and operational challenges in its aviation business.
Textron saw its second-quarter 2026 revenue rising 3% year-over-year (YOY) to $3.8 billion and adjusted EPS increasing to $1.62 from $1.55, beating Wall Street expectations. However, Textron Aviation remained a concern, as jet deliveries fell to 40 from 49 a year earlier because of supply-chain constraints and workforce productivity issues, while revenue rose just 1%. Bell revenue increased 6%, while Textron Systems revenue rose 7%.
The company also faces funding uncertainty for its MV-75 program, with management warning that a lack of additional government funding could reduce 2026 adjusted EPS by $0.20 to $0.30.
For the current year, which ends in December, analysts expect TXT’s EPS to rise 6.6% to $6.50 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters, while missing on one occasion.
TXT has a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the stock, opinions include six “Strong Buys” and 10 “Holds.”
This configuration has remained largely consistent over the past few months.
The latest notable analyst action was Goldman Sachs on Aug. 3, which maintained a “Hold” rating and a $93 price target, citing funding and execution uncertainties.
TXT’s mean price target of $101.40 indicates a premium of 17.5% from the current market price, while the Street-high target of $115 suggests a notable 33.3% upside potential.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.