📊 TXT Key Takeaways
Is Textron Inc. (TXT) a Good Investment?
Textron demonstrates solid operational fundamentals with 11.8% net income growth and healthy free cash flow generation of $929M, supporting its aircraft and parts manufacturing business. However, the anomalous 11845% revenue spike requires clarification (likely acquisition-related), and relatively modest profitability margins of 7.7% operating margin and 6.2% net margin suggest moderate pricing power in a competitive aerospace sector.
Textron shows solid underlying fundamentals with positive net income growth, rising diluted EPS, and healthy free cash flow generation relative to its capital spending needs. The balance sheet appears sound with meaningful cash, positive equity, and low reported leverage, but the extreme reported revenue growth and several missing balance sheet and margin fields reduce confidence in the quality and durability of the apparent improvement.
Why Buy Textron Inc. Stock? TXT Key Strengths
- Strong free cash flow generation at $929M with 6.3% FCF margin, demonstrating efficient capital allocation
- Healthy interest coverage ratio of 11.8x and zero debt-to-equity leverage, indicating financial stability and low refinancing risk
- Double-digit net income growth of 11.8% YoY and diluted EPS growth of 18% demonstrates expanding profitability despite aerospace cyclicality
- Solid liquidity position with $2.0B cash representing 11% of total assets, providing operational flexibility
- Net income and diluted EPS are growing at a healthy pace, indicating improving earnings power
- Free cash flow remains positive at $929.00M, supporting financial flexibility and reinvestment capacity
- Reported leverage looks conservative, with solid interest coverage and a sizable cash balance
TXT Stock Risks: Textron Inc. Investment Risks
- Massive 11845% revenue growth YoY is highly anomalous and likely reflects M&A activity rather than organic business performance, creating uncertainty regarding integration and operational execution
- Modest operating margin of 7.7% and net margin of 6.2% indicate thin profitability relative to capital base, limiting downside protection in economic downturns
- Aircraft and parts sector faces cyclical demand volatility tied to aviation industry capex cycles and macroeconomic conditions
- High insider trading activity with 17 Form 4 filings in 90 days warrants monitoring for potential capital structure or strategic changes
- Reported revenue growth of +11845.2% strongly suggests comparability or data-quality issues that cloud trend analysis
- Operating and net margins are positive but not especially high for an industrial business, leaving less room for execution missteps
- Key metrics are missing, including gross margin, current ratio, quick ratio, and long-term debt, limiting visibility into underlying financial health
Key Metrics to Watch
- Organic revenue growth excluding acquisition impact to assess underlying business momentum
- Operating margin trends and gross margin expansion as acquired operations integrate
- Free cash flow conversion rate and capital expenditure trajectory relative to revenue growth
- Return on Equity trajectory given the dilution from recent M&A activity
- Operating margin and free cash flow conversion
- Backlog-driven revenue quality and debt/liquidity disclosures
Textron Inc. (TXT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TXT Profit Margin, ROE & Profitability Analysis
TXT vs Automotive Sector: How Textron Inc. Compares
How Textron Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Textron Inc. Stock Overvalued? TXT Valuation Analysis 2026
Based on fundamental analysis, Textron Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Textron Inc. Balance Sheet: TXT Debt, Cash & Liquidity
TXT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Textron Inc.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $4.56 reflects profitable operations.
TXT Revenue Growth, EPS Growth & YoY Performance
TXT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.4B | $223.0M | N/A |
| Q2 2025 | $3.5B | $245.0M | N/A |
| Q1 2025 | $3.1B | $201.0M | $1.03 |
| Q3 2024 | $3.3B | $223.0M | N/A |
| Q2 2024 | $3.4B | $259.0M | N/A |
| Q1 2024 | $3.0B | $191.0M | $0.92 |
| Q3 2023 | $3.1B | $225.0M | N/A |
| Q2 2023 | $3.2B | $217.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Textron Inc. Dividends, Buybacks & Capital Allocation
TXT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Textron Inc. (CIK: 0000217346)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TXT
What is the AI rating for TXT?
Textron Inc. (TXT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXT's key strengths?
Claude: Strong free cash flow generation at $929M with 6.3% FCF margin, demonstrating efficient capital allocation. Healthy interest coverage ratio of 11.8x and zero debt-to-equity leverage, indicating financial stability and low refinancing risk. ChatGPT: Net income and diluted EPS are growing at a healthy pace, indicating improving earnings power. Free cash flow remains positive at $929.00M, supporting financial flexibility and reinvestment capacity.
What are the risks of investing in TXT?
Claude: Massive 11845% revenue growth YoY is highly anomalous and likely reflects M&A activity rather than organic business performance, creating uncertainty regarding integration and operational execution. Modest operating margin of 7.7% and net margin of 6.2% indicate thin profitability relative to capital base, limiting downside protection in economic downturns. ChatGPT: Reported revenue growth of +11845.2% strongly suggests comparability or data-quality issues that cloud trend analysis. Operating and net margins are positive but not especially high for an industrial business, leaving less room for execution missteps.
What is TXT's revenue and growth?
Textron Inc. reported revenue of $14.8B.
Does TXT pay dividends?
Textron Inc. pays dividends, with $18.0M distributed to shareholders in the trailing twelve months.
Where can I find TXT SEC filings?
Official SEC filings for Textron Inc. (CIK: 0000217346) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TXT's EPS?
Textron Inc. has a diluted EPS of $5.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TXT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Textron Inc. has a HOLD rating with 64% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TXT stock overvalued or undervalued?
Valuation metrics for TXT: ROE of 11.7% (sector avg: 12%), net margin of 6.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy TXT stock in 2026?
Our dual AI analysis gives Textron Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TXT's free cash flow?
Textron Inc.'s operating cash flow is $1.3B, with capital expenditures of $383.0M. FCF margin is 6.3%.
How does TXT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 6.2% (avg: 6%), ROE 11.7% (avg: 12%), current ratio N/A (avg: 1.2).