Teledyne Technologies (TDY) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 9.4% YoY to $1,684.9M; operating income increased 22.8% to $347.2M, and non-GAAP diluted EPS rose 20.6%.

• Q3 sales, operating profit and non-GAAP diluted EPS reached records; all four segments reported higher sales.

• Funded backlog was $5.3B, with 72% expected to convert to revenue within 12 months; orders exceeded sales for 12 consecutive quarters.

Financial highlights

• Q3 GAAP net income was $272.8M, up 23.6%; diluted EPS was $5.82 vs. $4.65, while adjusted net income was $315.1M and adjusted diluted EPS was $6.72.

• Nine-month sales rose 9.0% to $4,907.5M; operating income increased 18.8% to $974.6M and net income rose 21.3% to $751.3M.

• Q3 operating cash flow was $352.5M vs. $343.1M; record free cash flow was $319.5M vs. $313.9M.

• Q3 capital expenditures were $33.0M vs. $29.2M; depreciation and amortization was $84.7M vs. $84.5M.

• Q3 cost of sales was 56.1% of sales vs. 57.2%; 9M cost of sales was 56.2% vs. 57.3%, reflecting improved mix and, for 9M, tariff refunds.

Outlook and guidance

• FY26 sales guidance rose to $6.625B, up 8.3% YoY; GAAP EPS guidance is $21.71–$21.87 and non-GAAP EPS guidance is $25.40–$25.50.

• Q4 2026 EPS guidance is $5.68–$5.83 GAAP and $6.60–$6.70 non-GAAP; expected organic revenue growth is 7%–8%.

• Management expects mid- to higher-single-digit growth in 2027, above historical levels, but said it is too early for formal guidance.

• Digital Imaging FY26 revenue is expected near $2.5B, with 10% organic growth plus 0.6% acquisition contribution and 225 bps of segment margin growth.