Textron Stock Falls Despite Earnings Beat
Textron (NYSE: TXT) stock dropped nearly 8.2% on July 28, 2026, despite reporting earnings above analyst expectations and matching revenue forecasts for Q2. However, the company's GAAP earnings were lower than its non-GAAP figures, coming in at $1.42 per share compared to a forecast of $1.54. Revenue growth slowed year-over-year from 3% in Q2 2026 versus stronger performance earlier this year. Investor disappointment also stemmed from weaker-than-expected guidance and declining free cash flow, which fell by nearly 40%. Textron guided for full-year non-GAAP earnings of $6.50 per share—$0.01 below expectations—and GAAP earnings at about $5.49 per share. The company is moving forward with plans to sell its Industrial division, the least profitable segment with a 4.5% operating margin and minimal sales growth in Q2.
Topics: Earnings Report GAAP vs Non-GAAP Stock Performance Textron