Teledyne Technologies Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.84%.
Did TDY Beat Earnings? Q1 2026 Results
Teledyne Technologies posted a decisive beat across both headline metrics in the first quarter of fiscal 2026, with non-GAAP diluted EPS of $5.80 clearing the $5.47 consensus estimate by nearly 6% and marking the company's fourth consecutive quarter of beating EPS expectations. Revenue climbed 7.6% year-over-year to $1.56 billion, ahead of the $1.52 billion consensus by roughly 3%, as broad-based demand across defense and commercial markets powered the result. The primary growth engine was the Digital Imaging segment, where sales rose 7.9% to $816.90 million on strong demand for infrared imaging detectors and defense-oriented subsystems, while Aerospace and Defense Electronics delivered the sharpest segment gain at 14.4% to $277.50 million, partly aided by recent acquisitions including DD-Scientific. Non-GAAP operating margin expanded to 22.6% from 22.0% a year ago, reflecting solid operational discipline even as R&D investment increased to $84.60 million. Encouraged by the quarter's momentum, management raised its full-year 2026 non-GAAP EPS guidance to a range of $23.85 to $24.15, up from the prior $23.45 to $23.85 outlook.
- Strong organic growth in Digital Imaging driven by infrared detectors and systems for space, airborne, marine and land applications
- Higher sales of unmanned aerial systems for defense applications
- Industrial imaging and X-ray businesses returned to year-over-year growth
- Defense electronics sales growth of $36.1 million in Aerospace and Defense Electronics
- Marine instrumentation sales increase of $13.5 million due to stronger offshore energy and defense markets
- Environmental instrumentation sales increase of $7.3 million from stronger gas detection product sales
- Lower effective tax rate of 18.6% vs 21.0% due to discrete tax benefits from stock-based accounting
- Lower interest expense due to reduced outstanding borrowings
“We started 2026 with record first quarter sales, non-GAAP earnings per share and operating margin with sales and non-GAAP earnings increasing 7.6% and 17.2%, respectively. Organic growth was strongest in our Digital Imaging segment, where infrared detectors and systems for space, airborne, marine and land applications, as well as complete unmanned aerial systems contributed significantly. Furthermore, our industrial imaging and X-ray businesses each returned to year-over-year growth. Total operating margin increased despite greater research and development expense, and while we completed an acquisition and capital expenditures significantly increased, net leverage declined.”
Teledyne Technologies CEO, on the earnings call
Forward Guidance & Outlook
Teledyne raised its full-year 2026 guidance. Q2 2026 GAAP diluted EPS outlook is $4.75 to $4.90 and non-GAAP diluted EPS is $5.70 to $5.80. Full year 2026 GAAP diluted EPS is now expected at $20.08 to $20.44 (raised from $19.76 to $20.22), and non-GAAP diluted EPS at $23.85 to $24.15 (raised from $23.45 to $23.85). The non-GAAP outlook excludes certain transaction and integration costs and acquired intangible asset amortization.
TDY YoY Financials
TDY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.