TransDigm Group Q4 2026: Fourth Straight Beat and 15% EPS Guidance Jump

As seen on the 24/7 Wall St. homepage on November 10, 2026.

TDG TransDigm Group
Q4 2026
EPS
$12.44
est $12.21 +1.9%
Revenue
$2.99B
est $2.95B +1.4%

TransDigm's fourth straight beat came with fiscal 2027 guidance for adjusted EPS of $47.09 to $47.94, a 15% jump at the midpoint. Fourteen points of the quarter's growth were organic, with $4.4 billion of acquisitions shaving roughly two points off EBITDA As Defined margin.

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TransDigm Group closed its fiscal 2026 with another quarter above Wall Street's expectations, posting adjusted EPS of $12.44 against the $12.21 consensus estimate, a beat of roughly 1.9%. Revenue of $2.99 billion topped the $2.95 billion consensus by 1.44% and rose 22.6% from the same quarter a year earlier, with CEO Mike Lisman noting the results exceeded the high end of the company's own guidance on both revenue and EBITDA As Defined.

Fourteen percentage points of the quarter's revenue gain came from organic sources, a meaningful figure given how heavily the aerospace components maker has leaned on deals this year. EBITDA As Defined expanded 20% to $1.58 billion, though the margin settled at 53.0%, dipping partly because the recent acquisition wave shaved roughly two percentage points off that figure.

Fiscal 2026 was an unusually active capital deployment year. Lisman said the company invested approximately $4.4 billion in acquisitions, including Simmonds Precision Products, Jet Parts Engineering, Victor Sierra Aviation, Prince & Izant, and twelve bolt-on deals at the operating-unit level. Combined with a record $2.8 billion in share repurchases, total capital deployed for the year exceeded $7 billion.

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Looking into fiscal 2027, management issued guidance for adjusted EPS of $47.09 to $47.94, representing a roughly 15% jump at the midpoint. Net sales guidance of $11.95 billion to $12.15 billion assumes high-single-digit to low-double-digit commercial OEM revenue growth, high-single-digit commercial aftermarket growth, and high-single-digit defense growth. EBITDA As Defined is expected to land around a 52.0% margin, reflecting continued but moderating acquisition dilution.

Investors will want to monitor how well the company integrates its recent purchases while managing a substantially higher debt load. Rising interest expense and higher taxes weighed on GAAP net income in the quarter, even as the adjusted earnings picture remained strong. Lisman said TransDigm enters fiscal 2027 with significant liquidity and the financial flexibility to pursue additional deals, suggesting the acquisition cadence is unlikely to slow.

Sources

Mentioned: TDG

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Earnings · 2026 Q4 Michael Lisman President & CEO, TransDigm Group
Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined. Our EBITDA As Defined margin for the year ended at 52.7% which includes approximately two percentage points of dilution related to recent acquisitions.

A 52.7% full-year margin with roughly two points of acquisition dilution baked in means the underlying aftermarket business is running even hotter than the headline. Lisman's fourth quarter topped the high end of guidance on both revenue and EBITDA, so the question now is how fast the acquired units get pulled up to TransDigm's margin standard.

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Earnings · 2026 Q4 Michael Lisman President & CEO, TransDigm Group
Fiscal 2026 was a very successful year for TransDigm with over $7 billion in capital deployed through a combination of M&A and share repurchases. We invested approximately $4.4 billion in acquisitions including Simmonds Precision Products, Jet Parts Engineering, Victor Sierra Aviation, Prince & Izant, and twelve bolt-on acquisitions at the Operating Unit level. Fiscal 2026 was also a record year for share repurchases totaling approximately $2.8 billion.

Capital deployment of that size against a $67.4 billion market cap shows TransDigm still leaning on the leveraged playbook, with four named deals plus twelve bolt-ons and a record buyback year. Watch whether the acquisition pipeline can keep pace now that defense and aerospace deals are drawing heavier antitrust attention.

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Earnings · 2026 Q4 Michael Lisman President & CEO, TransDigm Group
We enter fiscal 2027 with significant liquidity and the financial flexibility to pursue additional M&A and other capital deployment opportunities.

TransDigm's CEO is telling the market the acquisition machine is loaded heading into fiscal 2027, and deals have long been the engine behind the $67.4 billion aftermarket roll-up. Watch for the next bolt-on target.

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