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Short-wave infrared sensors made by Teledyne FLIR are mounted under an APEX aircraft in Taitung, Taiwan, October 13, 2025. REUTERS/Ann Wang/File Photo Purchase Licensing Rights, opens new tab

July 22 (Reuters) - Teledyne Technologies (TDY.N), opens new tab on Wednesday raised its 2026 profit forecast as demand remained robust at ​its digital imaging, instrumentation as well as ‌aerospace and defense segments.

Shares of the sensing-systems maker, which also reported better-than-expected quarterly profit and revenue, rose nearly ​3% before the bell.

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Teledyne, which continues ​to benefit from elevated demand for defense and ⁠surveillance equipment amid heightened geopolitical tensions, noted ​further boost to its top-line from recent acquisitions.

"Organic ​growth was greatest in our Digital Imaging segment, where infrared detectors and systems for space and airborne and ​marine unmanned systems, as well as counter unmanned ​applications, each increased considerably," CEO Robert Mehrabian said.

"We achieved growth ‌in ⁠our other segments and each product line within the Instrumentation segment," the CEO added.

Teledyne now expects full-year adjusted profit between $24.45 and $24.65 per share, compared ​with its ​prior range ⁠of $23.85 to $24.15.

The mid-point of the new forecast range is 39 cents ahead of average ​analysts' estimate of $24.16, according to data ​compiled ⁠by LSEG.

On an adjusted basis, Teledyne earned $6.28 per share in the quarter ended June 28, compared with estimates of $5.80 a ⁠share.

The Thousand ​Oaks, California-based company posted ​a 9.8% year-on-year rise in second-quarter revenue to $1.66 billion, compared with estimates of $1.58 billion.

Reporting by ​Aatreyee Dasgupta in Bengaluru; Editing by Joyjeet Das

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The market expects Teledyne Technologies (TDY - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis defense and aerospace industry supplier is expected to post quarterly earnings of $5.77 per share in its upcoming report, which represents a year-over-year change of +11%.

Revenues are expected to be $1.56 billion, up 3.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Teledyne?For Teledyne, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.52%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Teledyne will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Teledyne would post earnings of $5.48 per share when it actually produced earnings of $5.80, delivering a surprise of +5.84%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Teledyne appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.