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Providence, Rhode Island-based Textron Inc. (TXT) is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. Valued at $13.2 billion by market cap, Textron operates through Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance segments.
Textron has significantly underperformed the broader market over the past year. TXT stock has plummeted 16.3% over the past 52 weeks and 5.5% in 2024, compared to the S&P 500 Index’s ($SPX) 22.3% surge over the past year and 4% gains in 2025.
Zooming in further, Textron has also underperformed the SPDR S&P Aerospace & Defense ETF’s (XAR) 24.6% gains over the past year and 1.8% returns on a YTD basis.
Textron’s stock prices observed a margin dip in the trading session after the release of its disappointing Q4 results on Jan. 22. Due to a notable drop in Textron Aviation and Industrial revenues, the company’s overall topline declined 7.2% compared to the year-ago quarter to $3.6 billion which missed the Street’s expectations by 3.5%. Meanwhile, its profitability also took a sharp hit, with its non-GAAP net income decreasing 21.5% year-over-year to $248 million. However, the company’s non-GAAP EPS of $1.34 exceeded the consensus estimates by 7.2%, which mitigated the drop in stock prices.
For the current fiscal 2025, ending in December, analysts expect TXT to report a solid 11.5% year-over-year growth in non-GAAP EPS to $6.11. However, the company has a mixed earnings surprise history. While the company surpassed the Street’s bottom-line expectations twice over the past four quarters, it missed the estimates on two other occasions.
Among the 14 analysts covering the TXT stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy,” six “Hold,” and one “Strong Sell” rating.
This configuration is slightly less bullish than a month ago when eight analysts gave “Strong Buy” recommendations.
On Jan. 23, Baird analyst Peter Arment reiterated an “Outperform” rating on TXT, while lowering the price target to $92.
TXT’s mean price target of $90.36 represents a 25% premium to current price levels, while its street-high target of $111 indicates a staggering 53.6% upside potential.
