Textron (TXT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 3% year-over-year to $3.8–$3.83 billion, with all manufacturing segments contributing to growth.

• Adjusted EPS rose to $1.62 (up 4.5% year-over-year), with GAAP EPS at $1.42; segment profit was $353 million, nearly flat year-over-year.

• Net income for Q2 was $248 million, up from $245 million in Q2 2025.

• The company is progressing with the separation or sale of its Industrial segment, targeting completion within 12–18 months.

• Strong commercial and military demand persists, with multi-year backlogs and key product milestones achieved.

Financial highlights

• Q2 2026 revenue: $3.8–$3.83 billion (+3% YoY); segment profit: $353 million (flat YoY); adjusted EPS: $1.62; GAAP EPS: $1.42.

• Net income for Q2: $248 million; adjusted net income: $283 million.

• Manufacturing cash flow before pension: $154 million, down from $336 million in Q2 2025.

• $209 million returned to shareholders via share repurchases in Q2; $377 million in the first half.

• Backlog reached $18.9 billion at quarter-end, with 74% expected to be recognized as revenue through 2027.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance reiterated at $6.40–$6.60; GAAP EPS expected between $5.39 and $5.59.

• Full-year manufacturing cash flow before pension projected at $700–$800 million.

• Guidance assumes additional FY26 funding for MV-75 Cheyenne; absence could reduce adjusted EPS by $0.20–$0.30 and cash flow by $150–$250 million.

• Continued strong demand in aviation and aftermarket; Gen3 light jet development progressing toward FAA certification.

• Uncertainty remains regarding the timing and structure of the Industrial segment separation.