TransDigm's Q2 Earnings Surpass Estimates, Sales Increase Y/Y

TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.

The company reported GAAP earnings of $9.20 per share compared with $8.24 in the year-ago quarter.

TransDigm’s Q2 Sales Discussion

Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.

Organic sales, as a percentage of net sales, grew 11%.

TDG’s Operating Results

The gross profit was $1.51 billion, up 18.6% from the year-ago quarter’s level of $1.27 billion.

TDG’s interest expenses increased 28% year over year to $484 million.

Net income increased 11.9% year over year to $536 million.

During the fiscal second quarter of 2026, TDG repurchased 602,070 shares of its common stock at an average price per share of $1,201 for a total amount of $723 million. For the 26 week period ended March 28, 2026, the company repurchased 687,282 shares of its common stock at an average price per share of $1,207 for a total amount of $829 million.

TransDigm’s Financial Position

Cash and cash equivalents as of March 28, 2026, amounted to $3.89 billion, up from $2.81 billion recorded as of Sept. 30, 2025.

Long-term debt as of March 28, 2026, totaled $31.15 billion, up from $29.2 billion as of Sept. 30, 2025.

Cash from operating activities amounted to $967 billion compared with $900 billion in the year-ago period.

TDG’s 2026 Guidance

The company now expects its net sales to be in the range of $10.300-$10.420 billion compared with the previous guidance of $9.845-$10.035 billion. The Zacks Consensus Estimate is pegged at $10.04 billion, which is lower than the company’s newly guided range.

TDG expects fiscal 2026 adjusted earnings to be in the band of $38.83-$40.21 per share compared with its previous guidance of $37.42-$39.34 per share. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.15 per share, higher than the midpoint of the company’s revised guided range.

TDG’s Zacks Rank

TransDigm currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Release 

Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.

TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.

Lockheed Martin Corporation LMT reported first-quarter 2026 adjusted earnings of $6.44 per share, which missed the Zacks Consensus Estimate of $6.67 by 3.5%. The bottom line increased 11.5% from the year-ago quarter's reported figure of $2.22.

LMT’s net sales were $18.02 billion, which missed the Zacks Consensus Estimate of $18.12 billion by 0.6%. The top line inched up 0.3% from $17.96 billion reported in the year-ago quarter.

Textron Inc. TXT reported first-quarter 2026 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 11.3%. The bottom line also rose 13.3% from $1.28 in the year-ago quarter.

TXT reported total revenues of $3.7 billion, which beat the Zacks Consensus Estimate of $3.51 billion by 5.4%. The top line also increased 11.8% from the year-ago quarter’s level of $3.31 billion.

 

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