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    Textron (TXT) Could Be 17% Undervalued Following Its October Earnings Setup

    Simply Wall St·09/30/2026 21:29:54
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    Textron (TXT) is back on investor calendars with its third quarter 2026 earnings release scheduled for Thursday, October 29, followed by an 8:00 a.m. Eastern conference call on the results and outlook.

    Textron’s share price has softened in the lead up to this earnings date, with the stock down 17.62% on a 90 day share price return and 12.46% on a year to date share price return. Longer term total shareholder returns of 0.41% over three years and 6.77% over five years point to slower building momentum.

    Scan beyond Textron and compare its recent pullback with a hand picked group of companies on the 31 high quality undervalued stocks.

    Textron operates a broad aviation and defense business, yet the recent double-digit share price slide puts the focus squarely on what investors are being asked to pay today. Is this a solid business that is temporarily marked down, or fairly valued after the drop?

    Most Popular Narrative: 17% Undervalued

    Textron last closed at $76.20, while the most followed narrative anchors fair value at $92.00. The current pullback is being weighed against a thesis that leans on execution in core aerospace and defense operations.

    Textron is investing in productivity tools and capacity additions at Aviation and Bell. However, recent flat segment profit of US$353 million on US$3.8 billion of revenue and manufacturing cash flow before pension contributions of US$154 million compared with US$336 million previously suggest that if operational fixes take longer than management expects, the tighter pure-play structure could leave limited room to protect earnings and free cash flow.

    See why 3 investors see Textron as 17% undervalued.

    Result: Fair Value of $92 (UNDERVALUED)

    Still, the narrative can be knocked off course if self funded MV-75 spending squeezes manufacturing cash flow, or if the Industrial separation concentrates margin pressure in Aviation and Bell.

    Find out about the key risks to this Textron narrative.

    Next Steps

    Sentiment around Textron is mixed. This is exactly when it helps to look directly at the numbers, pressure test the popular thesis, and then draw an independent conclusion. To see what the optimism is anchored to, review the 5 key rewards.

    Looking for more investment ideas beyond Textron?

    If Textron has you rethinking your watchlist, use this moment to refresh your pipeline with fresh ideas from targeted screeners that surface clear, data driven opportunities.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.