TXT · 10-Q · 2026Q4 · Full report

U.S. Tax Law Changes

TEXTRON INC · 2026-10-29 · Importance 66 · Surprise 74

Textron’s effective tax rate was 16.1% in the third quarter and 17.4% for the first nine months of 2026, compared with 25.6% and 19.9%, respectively, in 2025. The filing says the 2025 third-quarter rate reflected provisions of the One Big Beautiful Bill Act affecting deductions for foreign-derived intangible income and research and development credits. Beginning in 2026, deductions for foreign-derived deduction eligible income replaced foreign-derived intangible income; the filing does not quantify the financial impact of these tax-law changes.