TXT US S&P 500Russell 1000 Earnings call
Textron (TXT) · Q2 2026 results and valuation
Share price: $85.94 · 2026-11-11
Textron is a multi-industry company that manufactures and services aircraft, defense systems, and industrial products. It provides products such as business jets, helicopters, and unmanned aircraft systems to military, government, and commercial customers worldwide. Source: 10-K annual report (2026-02-11)
Results Q2 2026 vs Q4 2025 · previous quarter · fiscal Q2 2027 · published 5 Oct 2026 and 7 Apr 2026
Net income up 5.5% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
+5.5%
Net income vs Q4 2025
Net income 248.0M vs 235.0M
Revenue −8.3%
2 · How management spoke
Restrained
Less upbeat than 77% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Textron's API revenue exceeded $450,000 this quarter.
Valuation
Is Textron undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.8% growth a year (3-year revenue growth), the model's fair value is $91.32 a share — the stock trades 6% below it. Today's price assumes 3.9% growth a year.
Current price
$85.94
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.9% for 10 yrs
Fair value / share
$91.32
Buy below
$68.49
Price vs fair value
Undervalued 6%
Price vs buy-below price
Overvalued 25%
Read between the lines
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Figure
API revenue exceeded $450,000 this quarter, indicating a continued upward trend in revenue from API services.
Source quote
“API revenue had another strong quarter and has now exceeded $450,000.”
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Figure
The share of customers with ARPU above USD 500 continues to increase, indicating a growth in high-spending customer segments.
Source quote
“The share of customers with ARPU above USD 500 continues to increase.”
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Key theme
In September, the company moved virtually all Starter plan customers from LiveChat to Text, marking a significant shift in how those customers access the service.
Source quote
“In September, we moved virtually all Starter plan customers from LiveChat to Text.”
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Key theme
A customer moved from LiveChat to Text and is paying several times more due to a significant usage-based component.
Source quote
“And today, after moving from LiveChat to Text, this customer is paying several times more than before, including a significant usage-based component.”
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Key theme
Customers noted the API's capabilities are unique and are planning its use in future projects.
Source quote
“They told us that capabilities of our API are unique, and they are already thinking on how they can use them in future projects.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“API revenue had another strong quarter and has now exceeded $450,000.”
“The strong results our customers are achieving with Text are also encouraging us to accelerate the migration of customers from our other products to Text.”
“It's changed that there is sometimes a month when we see some decrease and we are seeing huge jump, that is changing month-to-month, not only growing.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-04)
| Metric | Q2 2026period end 2026-07-04 | Q4 2025period end 2026-01-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.83B | 4.17B | −8.3% | 3.72B | +3.0% |
| Operating income | 304.0M | 279.0M | +9.0% | 301.0M | +1.0% |
| Net income | 248.0M | 235.0M | +5.5% | 245.0M | +1.2% |
| P/E today 15.1 | 17.5 | 17.0 | +0.5 | — | — |
Topics
Most discussed now
- New As some of you may remember, monetizing and converting online businesses has always been at the heart of LiveChat.
- New This also got some attention from website or like from some sector news agencies.
- It brings together in one place, key data from customer systems, their e-commerce platforms, multiple communication channels and of…
- Textron is also, like the whole change of the way Text website looks.
- This is something, and Textron has talked about it last quarter that the increase that affected the LiveChat customers for some...
Faded since Q4 2025
- Dropped Media coverage media publication are probably now more important as they are source of the knowledge, a source of reputation...
- Fading [Technical Difficulty] I can go straight to the point, as you already know from the current report published last week...
- Fading The last slide on my side, in the next 3 quarters, the biggest direct impact on Textron's operational metrics will...
- Fading Textron justs added like crucial things in the area of AI agents.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Textron reported second-quarter 2026 revenue of $3.8 billion, up 3% or $111 million from the prior year, with adjusted EPS of $1.62 compared to $1.55 in the prior year.
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Regulation FD disclosure; Other events · SEC 8-K
Textron reported first-quarter 2026 revenues of $3.7 billion, up 12% or $389 million from the prior year, and announced plans to separate its Industrial segment.
- Director or officer change · SEC 8-K
Textron Inc. elected Cristina Méndez as a member of the Board of Directors effective February 15, 2026, following her role as CFO of Otis Worldwide Corporation, which reported $14 billion in net sales in 2024.
- Results of operations · SEC 8-K
Textron reported fourth-quarter revenue of $4.2 billion, up 16% from the previous year, and full-year revenue of $14.8 billion, up 8% from the prior year.
- Other events · SEC 8-K
Textron Inc. issued and sold $500,000,000 of its 4.950% Notes due March 15, 2036, on October 31, 2025.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$731.0M
2018-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.6% YoY, -0.6% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 187.0M |
| Q1 2025 | 182.4M |
| Q2 2025 | 180.0M |
| Q3 2025 | 177.7M |
| Q2 2026 | 174.6M |
| Q3 2026 | 173.5M |
Shares outstanding: 172.0M (2026-07-17)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. 27 filings parsed.
Sold by insiders
307.0K shares
$30.2M · 9 transactions
Bought by insiders
10.3K shares
$988.6K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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the coming quarters
flow of deferred revenue into revenue
Source quote
“That amount will flow into revenue over the coming quarters.”