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TransDigm Group

TransDigm Group (TDG) Q3 2026 Earnings

Reported Aug 4, 2026 at 7:17 AM ET · SEC Source

Q3 26 EPS

$10.87

BEAT +5.25%

Est. $10.33

Q3 26 Revenue

$2.74B

BEAT +2.50%

Est. $2.67B

vs S&P Since Q3 26

-5.5%

TRAILING MARKET

TDG -5.2% vs S&P +0.3%

Market Reaction

Did TDG Beat Earnings? Q3 2026 Results

TransDigm Group posted a strong fiscal third quarter of 2026, with adjusted earnings per share of $10.87 beating the $10.33 consensus estimate by 5.25% and revenue of $2.74 billion topping expectations by 2.50% while climbing 22.5% year over year. Th… Read more TransDigm Group posted a strong fiscal third quarter of 2026, with adjusted earnings per share of $10.87 beating the $10.33 consensus estimate by 5.25% and revenue of $2.74 billion topping expectations by 2.50% while climbing 22.5% year over year. The results were powered by broad-based momentum across all three market channels, with commercial aftermarket revenue growing 17%, commercial OEM benefiting from rising aircraft build rates, and defense contributing consistent double-digit gains, together driving 13% organic growth that was further amplified by recent acquisitions including the $2.20 billion purchase of Jet Parts Engineering and Victor Sierra completed in April. EBITDA As Defined reached $1.45 billion, though margin edged down modestly to 52.8% from 54.4% as acquisition dilution offset continued base-business expansion. Institutional interest in the stock has been building, with several large investors adding to positions ahead of the print. Management raised full-year fiscal 2026 guidance, lifting the net sales midpoint to $10.51 billion, adjusted EPS to a range of $40.62 to $41.46, and EBITDA As Defined to $5.49 billion to $5.55 billion.

Key Takeaways

  • • All three major market channels delivered double-digit year-over-year growth
  • • Commercial aftermarket revenue growth of 17%
  • • Commercial OEM growth driven by increasing aircraft build rates
  • • Defense channel delivered consistent growth and built sizable backlog
  • • Organic sales growth of 13% for the quarter
  • • Value-driven operating strategy driving base business EBITDA margin expansion year-over-year (excluding acquisition dilution)
  • • Acquisition contributions from Jet Parts Engineering and Victor Sierra

TDG Forward Guidance & Outlook

TransDigm raised its full fiscal year 2026 guidance across all key metrics. Net sales are now expected to be $10,470–$10,550 million (up $150 million at midpoint from prior guidance), representing 19% growth at midpoint over fiscal 2025. EBITDA As Defined is guided to $5,490–$5,550 million (up $100 million at midpoint), with an EBITDA As Defined margin of approximately 52.5%. Adjusted EPS is expected to be $40.62–$41.46 (up $1.52 at midpoint). GAAP net income is expected to be $2,102–$2,150 million, and GAAP EPS $35.38–$36.21. Market channel assumptions were shifted upward: commercial OEM revenue growth in the mid-teens percentage range, commercial aftermarket in the low double-digit percentage range, and defense in the high single-digit to low double-digit percentage range. Guidance excludes contribution from the pending Prince & Izant acquisition.

24/7 Wall St

TDG YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

“Our team executed another strong quarter, and we are very pleased with our results. All three of our major market channels again delivered double-digit growth compared to the prior year's third quarter. Commercial aftermarket growth of 17% remained strong this quarter. Commercial OEM grew nicely as well as the aircraft OEMs continue to increase build rates. Meanwhile, Defense saw another quarter of consistent growth and also built sizable backlog. Our reported EBITDA As Defined margin for the quarter was 52.8%. Adjusting for acquisition dilution, our base businesses continued to expand EBITDA margins on a year-over-year basis as the team executes on our value drivers.”

— Mike Lisman, Q3 2026 Earnings Press Release

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