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TransDigm Group

TDG Q1 2026 Earnings

Reported Feb 3, 2026 at 7:19 AM ET · SEC Source

Q1 26 EPS

$8.23

BEAT +2.35%

Est. $8.04

Q1 26 Revenue

$2.29B

BEAT +1.36%

Est. $2.25B

vs S&P Since Q1 26

-6.1%

TRAILING MARKET

TDG +0.8% vs S&P +6.9%

Market Reaction

Did TDG Beat Earnings? Q1 2026 Results

TransDigm Group posted a solid fiscal first quarter for 2026, with adjusted earnings per share of $8.23 beating the $8.09 consensus estimate by 1.73% as net sales climbed 13.9% year over year to $2.29 billion, propelled by 7.4% organic growth and a c… Read more TransDigm Group posted a solid fiscal first quarter for 2026, with adjusted earnings per share of $8.23 beating the $8.09 consensus estimate by 1.73% as net sales climbed 13.9% year over year to $2.29 billion, propelled by 7.4% organic growth and a contribution from recent acquisitions. The aerospace components maker saw strength across all three of its market channels, with commercial OEM revenue growing in the double digits and both commercial aftermarket and defense each expanding in the high single digits. EBITDA As Defined rose 12.8% to $1.20 billion, with management noting that recent acquisitions pressured the reported 52.4% margin by roughly 200 basis points, masking even stronger underlying performance. Building on the momentum, TransDigm raised its full fiscal year 2026 adjusted EPS guidance to a range of $37.42 to $39.34 and lifted its net sales outlook to $9.85 billion to $10.04 billion, while three pending acquisitions totaling roughly $3.20 billion in capital remained excluded from those updated targets. Institutional investors, who collectively hold nearly 96% of shares outstanding, have continued adding to positions ahead of what management signaled would be a busy year of capital deployment.

Key Takeaways

  • • 13.9% net sales growth driven by 7.4% organic growth and acquisition contributions
  • • Commercial OEM revenue grew in double digits supporting higher aircraft build rates
  • • Commercial aftermarket and defense markets each grew in high single digits
  • • Strong bookings across all three major market channels
  • • Value-driven operating strategy execution drove base-business margin improvement
  • • Recent acquisitions diluted EBITDA As Defined margin by approximately 2.0 percentage points
24/7 Wall St

TDG YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“We are pleased with our team's performance and operating results for the first quarter. This is a solid start to the 2026 fiscal year. Total revenue ran ahead of our expectations. Additionally, bookings were strong in all three of our major market channels. In the first quarter, our commercial OEM market revenue increased in the double digits on a percentage basis as we supported higher build rates at the OEMs. Further, both our commercial aftermarket and defense markets performed well, with each of these markets growing in the high single digits. Our reported EBITDA As Defined margin for the quarter was 52.4%. This margin includes a dilutive impact from our recent acquisitions of roughly 2.0%. Adjusting for acquisition dilution, the EBITDA margins of our base businesses improved nicely year over year. This solid margin performance was a result of the team's continued execution on our value drivers.”

— Mike Lisman, Q1 2026 Earnings Press Release

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