Textron's stock surged 7.92% in pre-market trading following the release of its first-quarter 2026 financial results, which significantly exceeded analyst expectations, and the announcement of a major strategic shift to separate its Industrial segment.

The aerospace and defense company reported adjusted earnings per share of $1.45 for the quarter, beating the consensus estimate of $1.30 by 11.54%. Revenue came in at $3.695 billion, surpassing the $3.518 billion estimate by 5.02%. The results were driven by higher aircraft deliveries at its Textron Aviation unit and increased military program volume at its Bell and Textron Systems divisions.

Concurrently, Textron announced its intent to separate its Industrial segment to become a pure-play aerospace and defense company. The firm is evaluating options including a sale or a tax-free spin-off into a standalone public company, with the goal of completing the transaction within 12 to 18 months. The company also provided full-year 2026 guidance for adjusted earnings per share in the range of $6.40 to $6.60, compared to a FactSet consensus estimate of $6.47, and expects the new Textron to generate over $12 billion in revenue with a $19 billion backlog.