Textron Receives Price Target Upgrade to $95 Amid Strong Demand

Textron's Q2 2025 results exceeded expectations with $3.72 billion in revenue and EPS of $1.55. The company's Aviation segment continues to experience strong demand, contributing to its performance. Susquehanna increased its price target from $90 to $95, maintaining a Positive rating on the stock. Analysts forecast an average target price of $90.42, implying an 11.72% upside from the current price.

Textron Inc. (NYSE: TXT) reported strong Q2 2025 earnings, with revenue reaching $3.72 billion and earnings per share (EPS) of $1.55, surpassing analysts' expectations. The company's Aviation segment, bolstered by robust demand, played a significant role in its performance. Susquehanna increased its price target from $90 to $95, maintaining a Positive rating on the stock. Analysts forecast an average target price of $90.42, implying an 11.72% upside from the current price.

The company's strategic resilience and disciplined capital allocation were evident in its Q2 results. Textron's defense segment, anchored by Bell's MV-75 program, drove significant growth. The U.S. Army's decision to accelerate the MV-75 program, a $12.8 billion contract for next-generation attack and reconnaissance helicopters, supercharged Bell's revenue trajectory. In Q2, Bell reported $1 billion in revenues, a 28% year-over-year increase, driven by both military and commercial helicopter sales [1].

Textron's Aviation segment also contributed to the company's strong performance. With $1.5 billion in Q2 revenues and a backlog of $7.85 billion, the segment positioned itself as a critical counterbalance to industrial volatility. Deliveries of 49 jets and 34 turboprops in Q2 underscored a production ramp that is gaining traction. While segment profit dipped slightly due to warranty costs and aircraft mix, the company's focus on margin improvement suggests a path to reaccelerated profitability in H2 2025 [1].

Analysts have been bullish on Textron's prospects. Susquehanna's price target increase reflects confidence in the company's ability to capitalize on structural tailwinds in sectors where demand is unlikely to wane. Other analysts, such as UBS Group and Morgan Stanley, have also shown optimism, with UBS increasing its price target from $62.00 to $63.00 and Morgan Stanley raising its target from $71.00 to $86.00 [2].

However, Textron faces challenges in its industrial and eAviation segments. The industrial segment, which includes the recently divested Powersports business, reported a 9% year-over-year revenue decline to $839 million, though segment profit rose to $54 million. The eAviation segment, which reported an $8 million loss in Q2, poses risks due to its capital-intensive nature and lack of a clear path to profitability [1].

Despite these challenges, Textron's diversified portfolio and strong cash flow generation position it as a resilient player in the aerospace and defense landscape. The company's ability to execute on high-margin contracts, reinvest in R&D, and return capital to shareholders creates a compelling case for long-term investors. For those seeking a diversified, cash-flow-generative play on the U.S. military's modernization agenda and global aviation demand, Textron offers a rare combination of resilience and strategic momentum.

References:
[1] https://www.ainvest.com/news/textron-2025-q2-earnings-case-strategic-resilience-defense-aviation-2507/
[2] https://www.marketbeat.com/instant-alerts/zacks-research-comments-on-textrons-q2-earnings-nysetxt-2025-07-24/