Teledyne Technologies (TDY) Q3 2026 Earnings
How Did TDY Stock React to Q3 2026 Earnings?
Did TDY Beat Earnings? Q3 2026 Results
Yes. Teledyne Technologies reported Q3 2026 earnings of $6.72 a share on Oct 21, 2026, beating the $6.16 consensus estimate by 9.0%. Revenue was $1.7B against a $1.7B estimate.
Teledyne Technologies delivered a strong third quarter of 2026, beating Wall Street expectations on both the top and bottom lines and extending its consecutive quarterly EPS beat streak to six. The company posted adjusted non-GAAP EPS of $6.72, ahead of the $6.16 consensus estimate by 9.04%, while revenue of $1.68 billion topped forecasts by 1.96% and grew 9.4% year-over-year. The standout driver was the Digital Imaging segment, which generated $903 million in revenue, up 15.0%, fueled by strong demand for infrared imaging detectors and defense-related subsystems, with GAAP operating income in that segment climbing 48.1% to $182.70 million. Non-GAAP operating margin widened to 23.9% from 22.1% a year ago, reflecting meaningful operating leverage. The pending acquisition of Varex Imaging for approximately $1.10 billion, expected to close in early 2027, signals continued investment in imaging capabilities. Management raised its full-year 2026 non-GAAP EPS outlook to $25.40 to $25.50, up from a prior range of $24.45 to $24.65, with fourth-quarter non-GAAP EPS guidance set at $6.60 to $6.70.
- Higher sales of infrared imaging detectors, components and subsystems for both defense and commercial applications
- Higher sales of maritime products, integrated defense systems, industrial and scientific imaging systems, X-ray products, and surveillance systems
- Favorable product mix in Digital Imaging
- Orders exceeded sales every quarter over the last three years with funded backlog of nearly $5.3 billion
- Non-GAAP operating margin expansion to 23.9% from 22.1%
- Lower net interest expense due to lower outstanding borrowings
“Our third quarter sales and operating earnings were the strongest in Teledyne's history. Specifically, sales and non-GAAP earnings per share increased 9.4% and 20.6%, respectively. Organic growth accelerated in our Digital Imaging segment and was led by sales of infrared detectors and subsystems for space and unmanned applications. Furthermore, each of our major commercial imaging businesses, such as industrial vision sensors & systems and healthcare, increased year-over-year. For all of Teledyne, orders exceeded sales every quarter over the last three years, and funded backlog is now nearly $5.3 billion. We were pleased to announce the pending highly-complementary Varex acquisition in August, and Varex's special meeting is scheduled for October 28. Finally, given our continued strong cash flow, we recently made $224.6 million of opportunistic stock repurchases.”
Teledyne Technologies CEO, on the earnings call
What Is Teledyne Technologies's Outlook?
The company raised its full-year 2026 GAAP diluted EPS outlook to $21.71–$21.87, up from the prior range of $20.73–$20.99. Full-year 2026 non-GAAP diluted EPS outlook was raised to $25.40–$25.50, up from $24.45–$24.65. Fourth quarter 2026 GAAP diluted EPS is expected in the range of $5.68–$5.83, and fourth quarter non-GAAP diluted EPS is expected at $6.60–$6.70. The non-GAAP outlook excludes certain transaction and integration costs and acquired intangible asset amortization.
TDY YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.7B | $1.5B | +9.4% |
| Gross Profit | $739.4M | $659.5M | +12.1% |
| Operating Income | $347.2M | $282.8M | +22.8% |
| Net Income | $272.8M | $220.7M | +23.6% |
TDY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.