Textron Inc. Reports 12% Revenue Growth to $3.695 Billion in Q1 2026

Textron Inc. reported a 12% increase in total revenues for the first quarter of 2026, reaching $3.695 billion compared to $3.306 billion in the same period last year. The growth was primarily driven by a $269 million increase in revenues from Textron Aviation, attributed to higher aircraft sales and aftermarket services. The Bell segment also contributed with a revenue increase of $87 million, largely from military aircraft and support programs, despite a decline in commercial helicopter sales. Net income for the quarter was $220 million, or $1.25 per diluted share, up from $207 million, or $1.13 per diluted share, in the prior year.

The company's cost of sales rose by 13% to $3.023 billion, reflecting higher production volumes and inflationary pressures. Gross margin as a percentage of manufacturing revenues decreased to 17.8% from 18.8% in the previous year, primarily due to lower margins in the Bell segment. Research and development costs decreased by 9% to $120 million, while selling and administrative expenses increased by 8% to $321 million, driven by higher compensation costs. Interest expense also rose by 17% to $34 million, reflecting higher average debt levels.

In terms of operational developments, Textron announced its intention to separate its Industrial segment from the company, exploring various options including a sale or a tax-free spin-off. This strategic move is expected to be completed within 12 to 18 months, subject to regulatory approvals. The company also realigned its Textron eAviation segment into other operating segments to enhance operational efficiency. As of April 4, 2026, Textron's total backlog stood at $19.162 billion, an increase from $18.823 billion at the beginning of the year, indicating strong future revenue potential.

The company’s cash and equivalents decreased to $1.610 billion from $2.025 billion at the start of the year, with net cash used in operating activities amounting to $117 million. Capital expenditures for the quarter were $133 million, up from $56 million in the same period last year. Textron's effective tax rate for the quarter was 17.6%, slightly higher than the previous year's 14.1%, primarily due to favorable research and development credits. Looking ahead, Textron expects to maintain positive cash flows from operations and is focused on managing pricing and supply chain strategies to mitigate the impacts of recent U.S. trade policy changes.