📊 TXT Key Takeaways
Is Textron Inc. (TXT) a Good Investment?
Textron exhibits concerning fundamental deterioration despite net income growth, with negative operating cash flow of -$117M and severely negative free cash flow of -$250M indicating the company is burning capital. Extraordinarily thin operating and net margins (7.2% and 6.0% respectively) combined with minimal returns on equity and assets (2.7% ROE, 1.2% ROA) reflect weak operational efficiency, while the suspicious 11,845% YoY revenue spike obscures underlying business quality.
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.
Textron Inc. Key Strengths (TXT)
- Modest net income growth of 11.8% YoY demonstrates profitability
- EPS growing faster at 18% YoY suggests effective capital management
- Reasonable cash position of $1.6B provides some liquidity buffer
- 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
- Negative operating cash flow of -$117M and free cash flow of -$250M indicate unsustainable cash burn
- Extraordinarily thin operating margin of 7.2% and net margin of 6.0% leave minimal cushion for operational stress
- Extremely low ROE (2.7%) and ROA (1.2%) demonstrate poor returns on invested capital
- Interest coverage ratio of 2.8x is concerning and provides limited debt service protection
- Unexplained 11,845% YoY revenue growth suggests potential accounting anomaly or non-recurring event masking underlying business quality
- 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
- Operating cash flow trend - must return to positive territory for sustainability
- Free cash flow and whether it normalizes or continues deteriorating
- Operating margin stability - sustainability of 7.2% level given aerospace sector competitiveness
- Quality of earnings - operating cash flow to net income conversion ratio
- 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 |
|---|---|---|---|
| Q1 2026 | $3.3B | $207.0M | $1.13 |
| 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 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| May 7, 2026 | 4 | xslF345X06/wk-form4_1778185083.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666407.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666375.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666336.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666268.xml | View → |
❓ Frequently Asked Questions about TXT
What is the AI rating for TXT?
Textron Inc. (TXT) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXT's key strengths?
Claude: Modest net income growth of 11.8% YoY demonstrates profitability. EPS growing faster at 18% YoY suggests effective capital management. 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: Negative operating cash flow of -$117M and free cash flow of -$250M indicate unsustainable cash burn. Extraordinarily thin operating margin of 7.2% and net margin of 6.0% leave minimal cushion for operational stress. 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 $3.7B.
Does TXT pay dividends?
Textron Inc. pays dividends, with $3.0M 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 $1.25.
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 grade reflects both perspectives for balanced insights.
What is TXT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Textron Inc. has a C grade with 67% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TXT stock overvalued or undervalued?
Valuation metrics for TXT: ROE of 2.7% (sector avg: 12%), net margin of 6.0% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is TXT's AI grade for 2026?
Our dual AI analysis gives Textron Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TXT's free cash flow?
Textron Inc.'s operating cash flow is $-117.0M, with capital expenditures of $133.0M. FCF margin is -6.8%.
How does TXT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 6.0% (avg: 6%), ROE 2.7% (avg: 12%), current ratio N/A (avg: 1.2).