Textron Raises 2026 Guidance as Q3 Cash Flow Jumps 49%; Textron Aviation Posts Strongest Third-Quarter Orders Since 2023

Textron reported third-quarter 2026 revenue of $3.8 billion, up 4% year over year, with adjusted earnings per share of $1.76 against $1.55 a year earlier. Segment profit was $355 million, versus $360 million. Manufacturing cash flow before pension contributions rose 49% to $418 million from $281 million, and the company repurchased 2.9 million shares for $239 million during the quarter.

Textron Aviation revenue rose 14%, or $201 million, to $1.7 billion, with aircraft revenue up $152 million and aftermarket revenue up $49 million. The segment delivered 51 jets, up from 42, while turboprop deliveries fell to 32 from 39. Segment profit was $179 million, up $7 million. CEO Lisa Atherton said order activity was the strongest for a third quarter since 2023, and that the company had seen no change in customer behavior from higher interest rates or geopolitical tensions.

Bell revenue fell 9% to $933 million, with military revenue down $59 million on lower MV-75 development volume and commercial helicopter revenue down $34 million. Segment profit fell $16 million to $76 million. On the MV-75 Cheyenne program, Congress approved a $350 million ATR request, of which about $300 million was obligated in the quarter. CFO David Rosenberg said Textron did not reverse the negative cumulative catch-up adjustment taken in the second quarter, and that if the low-rate initial production award slips into 2027 the charge range would probably rise to $110–$150 million.

Textron Systems revenue rose 16% to $360 million, with segment profit up $10 million to $57 million. Industrial revenue rose 1% to $765 million, with segment profit up $7 million to $38 million. The finance segment posted a profit of $5 million, down from $18 million.

Textron raised full-year adjusted EPS guidance to $6.55–$6.65 from $6.40–$6.60, and manufacturing cash flow before pension contributions guidance to $800–$900 million from $700–$800 million. Rosenberg attributed the cash raise mainly to roughly $100 million lower expected capital spending and strong fourth-quarter cash expectations tied to aviation deposits. Aviation segment margin is expected to reach the low end of the 11–12% full-year range. Management did not provide 2027 guidance, describing margin improvement as a 12-month journey.

The Textron Aviation figures show where new-aircraft demand sat this quarter: jet deliveries rose from 42 to 51 while turboprops fell from 39 to 32, and aircraft revenue contributed $152 million of the segment's $201 million increase. In business aviation, order intake converts to revenue with a lag, and customer deposits are what turn a strong order quarter into cash. Management's own explanation of the raised cash guidance, which leans on fourth-quarter aviation deposits, follows that logic.

The management comment that higher interest rates and geopolitical tension had not altered customer behavior matters for how the segment is read. New-aircraft buyers in this market are typically financed through balance sheets and wealth rather than short-term borrowing costs, so order books can hold up even when broader industrial demand wobbles. One quarter of strong orders does not establish a trend, but it is the strongest third-quarter result since 2023 by the CEO's account.

Bell is the offsetting variable in the consolidated picture. The revenue decline there is tied to development-phase volume on a single military program, and the size of the catch-up charge depends on when the low-rate initial production award lands. The next marker is whether that award arrives before year-end or slips into 2027, which Rosenberg said would push the charge range to $110–$150 million.