Textron Inc. delivered a solid QQ3 2026 performance with revenue of $3.602 billion, up 5.11% year over year and a modest sequential decline of 3.07% QoQ. The gross profit of $654 million produced a gross margin of 18.16%, while operating income of $235 million yielded an operating margin of 6.52%. Net income reached $234 million, translating to a net margin of 6.50% and an EPS of $1.31. EBITDA stood at $443 million, or an EBITDA margin of approximately 12.3%. The year-over-year improvement in revenue was accompanied by a meaningful 32.93% rise in gross profit, signaling favorable mix or pricing dynamics, though near-term momentum appears to have cooled on a sequential basis as suggested by the QoQ revenue and gross profit declines.
The results underscore Textron’s diversified exposure across aerospace, defense, and industrial activities. A multi-segment mix, with ongoing demand in defense and aviation-related services, supports durable earnings visibility even as the company faces typical cyclicality in commercial aviation. The quarter benefited from disciplined cost management (SG&A of $257 million) and continued depreciation and interest expense of $97 million and $30 million, respectively. While explicit forward guidance was not provided in the disclosed data, the balance of indicators suggests Textron remains positioned to navigate near-term volatility while maintaining earnings resilience supported by a constructive defense backdrop and ongoing aftermarket/mission-support activity. Investors should monitor defense budget trajectories, aviation demand normalization, supply-chain dynamics, and potential margin progression as the company advances its cost-control initiatives and portfolio mix optimization.