Textron Raises 2026 Outlook After Cheyenne Funding

The Tip Desk · October 30, 2026 · 3 min read

The company lifted full-year adjusted EPS to $6.55–$6.65 and manufacturing cash flow before pension contributions to $800 million–$900 million after Congress approved the MV-75 Above Threshold Reprogramming request.

Textron Inc. (TXT) raised its full-year 2026 outlook after the U.S. Army received Congressional approval for the Above Threshold Reprogramming request tied to the MV-75 Cheyenne program and associated contract modifications obligating that funding.

The company now expects full-year adjusted earnings from continuing operations of $6.55 to $6.65 a share, up from a prior range of $6.40 to $6.60, and GAAP earnings of $5.64 to $5.74 a share, up from $5.39 to $5.59. Manufacturing cash flow before pension contributions is now expected at $800 million to $900 million, up from $700 million to $800 million.

In the third quarter, Textron reported income from continuing operations of $1.56 a share, compared with $1.31 a year earlier. Adjusted income from continuing operations was $1.76 a share, versus $1.55 a year earlier. Revenue was $3.8 billion, up 4%, or $149 million, from the year-ago quarter.

Chief executive Lisa M. Atherton said higher jet deliveries at Textron Aviation and program execution at Textron Systems drove double-digit revenue growth at each of those segments, and that Bell continued to make operational progress on MV-75.

Textron Aviation revenue growth accelerated to 14%, or $201 million, from 1% in the second quarter, reaching $1.7 billion. Aircraft revenue rose $152 million, which the company said was primarily due to higher volume and mix, largely reflecting higher Citation jet volume, partially offset by lower commercial turboprop volume. Aftermarket parts and services revenue rose $49 million on higher volume and pricing. The segment delivered 51 jets, compared with 42 in the third quarter of 2025, and 32 commercial turboprops, down from 39. Segment profit was $179 million, up $7 million, or 4%, from a year ago, reversing the 3% year-over-year decline reported in the second quarter of 2026. Backlog remained $8.0 billion.

Bell revenue reversed to a 9% decline, or $93 million, from a 6% increase in the second quarter, at $933 million. The company said the decrease was primarily driven by $59 million lower military revenue, largely due to lower volume on MV-75, and $34 million lower commercial helicopters, parts and services revenue. Bell delivered 29 commercial helicopters, down from 30 a year earlier. Segment profit was $76 million, down $16 million, or 17%, from a year earlier, primarily due to lower volume and mix. Bell backlog was $7.6 billion.

Textron Systems revenue rose 16%, or $50 million, to $360 million, largely due to higher volume on armored land vehicles and military training and support services provided by Airborne Tactical Advantage Company. Segment profit was $57 million, up $10 million, or 21%, compared with the third quarter of 2025, primarily due to higher volume, partially offset by higher selling and administrative expense reflecting a net $10 million decrease in a gain associated with the early termination of a vendor contract in the year-ago quarter. Systems backlog was $3.5 billion.

Industrial revenue was $765 million, up 1% from a year earlier. Textron Specialized Vehicles revenue increased $26 million, or 9%, reflecting higher volume and mix and a favorable impact from pricing. Kautex revenue decreased $22 million, or 5%, largely reflecting lower volume and mix, partially offset by higher pricing. Segment profit was $38 million, up $7 million, or 23%, from a year earlier.

Finance segment revenue was $13 million and segment profit $5 million, compared with $26 million and $18 million a year earlier, primarily reflecting $11 million of gains in the year-ago quarter from the disposition of non-captive assets.

Manufacturing group net cash from operating activities was $512 million, compared with $348 million in last year’s third quarter. Manufacturing cash flow before pension contributions was $418 million, compared with $281 million a year earlier. Textron returned $239 million to shareholders through share repurchases in the quarter.