Textron Inc. (TXT)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Textron is the sort of diversified industrial I can understand: business jets and turboprops, helicopters, defense systems, industrial products, and a finance arm. The latest filed figures show fiscal Q2 2026 (quarter ended 2026-07-04) revenue of $3.8B, net income of $248M, and diluted EPS of $1.42; a year earlier, fiscal Q2 2025 (quarter ended 2025-06-28) had $3.7B revenue, $245M net income, and $1.35 diluted EPS. That is modest top-line growth but decent per-share progress. For the fiscal year ended 2026-01-03, revenue was $14.8B, net income $921M, and diluted EPS $5.11, versus $13.7B, $824M, and $4.33 in the fiscal year ended 2024-12-28—so profits and per-share earnings grew faster than sales. The business has some durable franchises and recurring service/parts exposure, though aerospace cycles and defense budgets are outside management's control. Financial health is okay but not fortress-like: FairStock's data show debt/equity of 0.52, ROE of 12.13%, ROCE of 4.55%, and a Piotroski F-score of 7/9. Free cash flow was $759M trailing twelve months, a 5.6% FCF yield. At the 2026-10-26 close of $78.11, the FairStock P/E is 14.71, P/B 1.67, EV/EBITDA 9.08, and the Graham Number is $74.81, with FairStock's margin of safety at -2.70%—a slim cushion. The PEG of 11.86 signals growth is not cheap relative to earnings. Textron looks like a fair-quality industrial at a fair-to-slightly-full price; I would want a wider margin of safety before calling it compelling.

In plain English: Textron makes business jets, helicopters, defense equipment and industrial products. The business looks reasonably sturdy: sales and profits have grown, it generates meaningful cash, and the balance sheet is not stretched. At the recent close, the shares look about fairly priced, perhaps a little above a simple conservative value estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2026-01-03) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer