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Teledyne Technologies Inc (TDY) (Q3 2026) Earnings Call Highlights: Record Sales, Raised Guidance and a $5.3 Billion Backlog Fuel Confidence Teledyne Technologies Inc (TDY) posted record third-quarter sales, lifted full-year 2026 guidance for the third straight quarter, and signaled mid- to high-single-digit organic growth ahead.

Revenue (Q3 2026): Record quarterly sales; strongest in Teledyne's history.Full-Year 2026 Sales Guidance: Raised to $6.625 billion, up 8.3% year-over-year (nearly double January projection of 4.2% growth).Full-Year 2026 Non-GAAP EPS Guidance: Raised to $25.45, up ~8% ($1.80/share) from January forecast and 16% above prior year.Q4 2026 EPS Guidance: GAAP $5.68–$5.83; non-GAAP $6.60–$6.70.Full-Year 2026 GAAP EPS Guidance: $21.71–$21.87; non-GAAP $25.40–$25.50.Orders & Backlog: Orders exceeded sales for 12 consecutive quarters; funded backlog ~$5.3 billion.Digital Imaging Segment: Sales +15% (14.3% organic); non-GAAP operating margin +376 bps to 25.4%; infrared detectors for space imaging and IR subsystems/cameras for unmanned systems each up >25%.Instrumentation Segment: Sales +1.9%; marine instruments +2%; environmental instruments +7.1%; electronic test and measurement -6.3% (orders +18%, book-to-bill 1.23); non-GAAP margin down modestly on mix but up sequentially for second straight quarter.Aerospace & Defense Electronics Segment: Sales +4.3%; Defense Electronics +7.4% offset by lower commercial aerospace; book-to-bill 1.29; non-GAAP margin +86 bps.Engineered Systems Segment: Revenue +7.8%; operating margin largely flat year-over-year.Operating Cash Flow: $352.5 million vs. $343.1 million in Q3 2025.Free Cash Flow: Record Q3 of $319.5 million vs. $313.9 million in Q3 2025.Capital Expenditures: $33.0 million vs. $29.2 million in Q3 2025.Depreciation & Amortization: $84.7 million vs. $84.5 million in Q3 2025.Net Debt: $1.47 billion ($2.03 billion debt less $562.4 million cash); leverage at lowest level in six years.Share Repurchases: $224.6 million at ~$607 weighted average; ~$980 million over three years at ~$479 weighted average.Release Date: October 21, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points Teledyne Technologies Inc TDY reported record third-quarter sales and operating earnings, with full-year 2026 guidance raised for the third consecutive quarter.Orders have exceeded sales for 12 consecutive quarters, and funded backlog stands at approximately $5.3 billion, providing strong revenue visibility.Digital Imaging segment sales grew 15% (14.3% organic) with broad-based growth across defense and commercial markets, and operating margin expanded 376 basis points to 25.4%.The company generated record third-quarter free cash flow of $319.5 million and maintains low leverage, with net debt of $1.47 billion.Teledyne Technologies Inc (TDY) has a balanced portfolio with growth across multiple end markets and geographies, and expects mid- to high-single-digit organic growth in 2027. Negative Points Instrumentation segment sales grew only 1.9% year-over-year, with electronic test and measurement systems sales declining 6.3% due to order timing.Aerospace and Defense Electronics segment sales increased just 4.3%, as growth in defense electronics was partially offset by lower commercial aerospace sales.Supply chain shortages and inflation for certain components are causing higher costs, though the company is mitigating through price increases.The pending Varex acquisition may initially reduce revenue as Teledyne Technologies Inc (TDY) applies its 80/20 principles, potentially shrinking the top line before growth resumes.Uncertainty in the defense budget environment could impact future growth beyond 2027, particularly regarding reconciliation funding for space and drone programs. Q & A Highlights Q: With total company backlog growing sequentially every quarter this year, what visibility does the team have on the top line heading into 2027, particularly from unmanned and space awards?
A: Executive Chairman Robert Mehrabian said funded backlog stands at approximately $5.3 billion, with about 72% of that convertible to revenue over the next 12 months — roughly half of 2026's revenue. He noted book-to-bill of 1.07 in Instrumentation and said the Q3 pickup in orders points to a "fairly favorable future."

Q: Digital Imaging accelerated and beat expectations — what changed this quarter, and was it defense or commercial infrared?
A: Robert Mehrabian attributed the upside to space-based infrared sensors for missile warning and tracking, unmanned systems that did "better than we thought," and broad strength across machine vision, health care and MEMS. He said Digital Imaging book-to-bill was about 1.2x across both legacy and FLIR businesses.

Q: Can you discuss Digital Imaging margin expectations given price/cost dynamics, and are R&D and SG&A growing too fast?
A: Robert Mehrabian said Digital Imaging margins are now projected to rise 225 basis points for the full year, with FLIR revenue growth of about 12%. CEO George Bobb added that 2025 cost actions are paying off — Q3 segment margin rose 180 basis points and gross margins were up roughly 100 basis points year-over-year — while R&D was not materially higher in the quarter.

Q: What attracted Teledyne to Varex, and how do you address its flat revenue?
A: Robert Mehrabian said Teledyne tracked Varex for six years and moved as health care markets recovered. Varex's amorphous silicon detectors for high-energy oncology and its photon-counting detectors complement Teledyne's ceramic metal oxide X-ray detectors. He expects 80/20 actions to trim revenue initially while lifting gross margins in year one, followed by mid-single-digit growth, and cited Teledyne's track record of cutting acquired multiples from ~13.5x EBITDA to under 8x.

Q: How sustainable are Digital Imaging's recent growth rates given the unique defense environment plus a commercial recovery?
A: Robert Mehrabian said 2026 organic growth of about 7.5% is well above Teledyne's 15-year norm, and he expects mid- to high-single-digit growth to sustain into 2027 — "maybe not as aggressive as this year, but pretty close to it" — supported by the intentionally balanced portfolio.

Q: What is the budget environment impact given exposure to space, drones and counter-drone programs funded by reconciliation money?
A: Robert Mehrabian acknowledged budget uncertainty but said longer-term programs already won, including the recent Golden Dome award, leave Teledyne comfortable for 2027. He flagged that the outlook for 2028 and 2029 is less clear given developments in Europe and the Middle East.

Q: Are customers ordering earlier or excessively due to budget worries, creating unusual order patterns?
A: Robert Mehrabian said no — orders are broad-based across products with no unusual movements, including nothing driven by data centers. "We haven't noticed anything unusual across our portfolio."

Q: How are supply chain shortages in printed circuit boards and electronic components affecting you, and how are you managing them?
A: Robert Mehrabian said a dedicated team works with businesses and suppliers to secure needed components. Inflation in affected areas is above normal, but Teledyne has offset it with one of its better price-increase years across the portfolio, and he expects some shortages to prove temporary.

Q: What is the implied Q4 organic revenue growth in the revised guidance, and does it look conservative?
A: Robert Mehrabian said the guidance embeds 7% to 8% organic growth for Q4, adding that it could be a little higher but "execution is everything." He also noted Teledyne is not currently enjoying the tax benefits it had in Q4 2025, though favorable IRS decisions could add upside.

Q: Can you update the unmanned outlook in dollar growth terms for this year?
A: Robert Mehrabian said unmanned is growing about 15% year-over-year from 2025 to 2026. Including space, electronic warfare, missiles and underwater, the broader defense domain is still growing double digits at roughly 11.3% to 11.5%.

Q: How should we think about Instrumentation margins — will the segment return to year-over-year expansion in Q4 and into 2027?
A: George Bobb said Instrumentation margins should continue improving sequentially, though Q4 likely won't quite reach 2025 levels. He added that based on the 2027 outlook, "I feel good about the direction we're at," with Test & Measurement bookings up 18% year-over-year for a record 1.23 book-to-bill.

Q: On unmanned demand, can you differentiate subsystems for customer platforms versus your own, and is incremental capacity needed?
A: Robert Mehrabian said infrared and visible subsystems have been the strongest defense programs, driven by customer confidence in supply reliability and continuous product improvement — 12-micron detectors shipping, with 8-micron plus software additions announced. He sees about 10% growth in total defense systems versus multiples of that in subsystems.

Q: What is the longer-term size and shape of Digital Imaging given programs like space sensors and missile detection are still early?
A: Robert Mehrabian guided to mid-single digits, perhaps 5% to 8%, saying it is too early to project beyond 2027. He pointed to new offerings — armed loitering drones, nano drones releasable three at a time from a single platform, and cross-platform drone interoperability — as support for higher single-digit growth.

Q: Can you clarify the Digital Imaging growth figure — was 8%-plus a Q4 number or a full-year number?
A: Robert Mehrabian clarified that full-year Digital Imaging organic growth is about 10%, or roughly 10.6% to 11% including acquisitions, on

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Teledyne Technologies Incorporated ( TDY ) Q3 2026 Earnings Call October 21, 2026 11:00 AM EDT Company Participants Jason VanWees Robert Mehrabian - Executive Chairman George Bobb - President, CEO & Director Stephen Blackwood - CFO & Executive VP Conference Call Participants Zachary Walljasper - UBS Investment Bank, Research Division Andrew Buscaglia - BNP Paribas, Research Division Adam Samuelson - Jefferies LLC, Research Division Jonathan Siegmann - Stifel, Nicolaus & Company, Incorporated, Research Division Guy Drummond Hardwick - Barclays Bank PLC, Research Division Joseph Giordano - TD Cowen, Research Division Ronald Epstein - BofA Securities, Research Division Noah Poponak - Goldman Sachs Group, Inc., Research Division Robert Jamieson - Needham & Company, LLC, Research Division Bradley Eyster - Citigroup Inc., Research Division Presentation Operator Welcome to Teledyne's Third Quarter Earnings Call. Here's our first speaker, Mr.

Inside Teledyne's Bold Bet on the Future of Medical ImagingTeledyne Technologies NYSE: TDY reported its strongest quarterly sales and operating earnings in company history for the third quarter of 2026, supported by broad-based growth in digital imaging, defense-related applications and commercial markets. Management raised its full-year sales and earnings outlook for the third consecutive quarter, citing sustained order momentum and a funded backlog of approximately $5.3 billion.

Executive Chairman Robert Mehrabian said the company now expects 2026 revenue of $6.625 billion, representing an 8.3% increase from 2025 and nearly twice the growth rate projected in January. Teledyne also forecast non-GAAP earnings per share of $25.45, up $1.80 from its initial January outlook and representing a 16% increase from the prior year.

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3 Robotics Stocks Animating Markets With Ample Upside to Go“For all of Teledyne, orders have exceeded sales for 12 consecutive quarters,” Mehrabian said. He added that approximately 72% of the company’s backlog is expected to convert into revenue within the next 12 months.

Digital Imaging Leads Segment Growth President and CEO George Bobb said third-quarter sales in the Digital Imaging segment rose 15%, including 14.3% organic growth. The performance reflected growth across both defense and commercial markets, with particular strength in infrared detectors and systems used for space-based imaging and unmanned platforms.

Teledyne Accelerates to Maximum Velocity: $700 in SightSales of infrared detectors for space-based imaging increased more than 25%, as did revenue from infrared subsystems and cameras supplied for unmanned air systems and unmanned maritime surface vehicles, according to Bobb. Commercial end markets also expanded, including industrial and scientific vision sensors and cameras, healthcare X-ray products, commercial thermography cameras, maritime-navigation electronics, geospatial sensors and software, and MEMS products.

Digital Imaging’s non-GAAP operating margin increased 376 basis points year over year to 25.4%. Mehrabian said the company expects Digital Imaging revenue of about $2.5 billion for the full year, including 10% organic growth and roughly 0.6% growth from acquisitions.

Management attributed the segment’s margin progress partly to cost actions taken in 2025. Bobb said gross margins rose by roughly 100 basis points year over year in the quarter, while research and development spending was not materially higher. Mehrabian said Teledyne expects full-year Digital Imaging margin expansion of about 225 basis points and continues to target annual margin improvement across its portfolio.

Orders Strengthen Across Other Businesses Instrumentation segment sales increased 1.9% from a year earlier. Marine instrument sales rose 2%, driven by defense-related interconnect sales for U.S. Virginia and Columbia submarines as well as continued offshore energy activity. Environmental instrument sales rose 7.1%, led by gas-monitoring products and more modest growth in laboratory and life-sciences instruments.

Electronic test-and-measurement sales declined 6.3%, which Bobb attributed in part to order timing. However, orders in that business increased 18% year over year, resulting in a record book-to-bill ratio of 1.23. Instrumentation’s operating margin declined modestly due to product mix but improved sequentially for the second consecutive quarter. Bobb said the company expects continued sequential margin improvement, though fourth-quarter margins are not expected to return to 2025 levels.

Aerospace and Defense Electronics sales increased 4.3%, as 7.4% growth in defense electronics was partly offset by lower commercial aerospace revenue. The segment posted a 1.29 book-to-bill ratio, with strong bookings in both defense and aerospace. Its non-GAAP operating margin improved 86 basis points despite a heavier mix of defense electronics, which carries lower margins than commercial avionics.

Engineered Systems revenue increased 7.8%, primarily due to higher sales of marine and other manufacturing programs. Segment operating margin was largely unchanged from the prior year.

Cash Flow, Buybacks and Varex Transaction Chief Financial Officer Steve Blackwood said operating cash flow totaled $352.5 million in the third quarter, up from $343.1 million a year earlier. Free cash flow reached a third-quarter record of $319.5 million, compared with $313.9 million in 2025. Teledyne ended the quarter with $1.47 billion in net debt, consisting of about $2.03 billion in debt and $562.4 million in cash.

The company repurchased $224.6 million of its shares during the period at a weighted average price of approximately $607 per share. Mehrabian said Teledyne has deployed nearly $980 million toward stock repurchases over the past three years at an aggregate weighted average price of $479 per share.

Management also discussed its pending acquisition of Varex, which it expects to close early in 2027, subject to the regulatory process and shareholder approval. Varex’s special stockholder meeting is scheduled for Oct. 28.

Mehrabian said Teledyne had followed Varex for more than six years and was attracted to its X-ray detector portfolio, including products for high-energy oncology imaging and photon-counting detectors. He said Teledyne expects to apply its “80/20” operating approach to the acquired business, initially emphasizing margin improvement and potentially reducing lower-margin revenue before seeking mid-single-digit growth and commercial synergies.

Outlook For the fourth quarter, Teledyne forecast GAAP earnings per share of $5.68 to $5.83 and non-GAAP earnings per share of $6.60 to $6.70. Full-year GAAP earnings per share are expected to be $21.71 to $21.87, while non-GAAP earnings per share are projected at $25.40 to $25.50.

Mehrabian said the company expects fourth-quarter organic revenue growth of roughly 7% to 8%, subject to execution. Looking toward 2027, he said Teledyne expects improvement from current momentum and backlog, though management declined to provide a detailed forecast. The company sees potential for growth above its historical pace, with expectations for mid- to higher-single-digit growth across its portfolio.

About Teledyne Technologies (NYSE:TDY)Teledyne Technologies Incorporated NYSE: TDY is an industrial technology company that develops and manufactures sophisticated electronic, digital imaging, aerospace and defense products. Its offerings are used in commercial, industrial, scientific, government and defense applications where sensing, imaging, measurement and data processing are important.

The company's businesses include digital imaging sensors and cameras, scientific instruments, environmental and marine monitoring systems, aerospace and defense electronics, communications equipment, data-acquisition systems and engineered components.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Teledyne Technologies Incorporated (NYSE:TDY)

All-time record quarterly sales, operating profit and non-GAAP diluted earnings per share Third quarter net sales of $1,684.9 million, an increase of 9.4% compared with last year Third quarter GAAP diluted earnings per share of $5.82, an increase of 25.2% compared with last year Third quarter non-GAAP diluted earnings per share of $6.72, an increase of 20.6% compared with last year Third quarter cash from operations of $352.5 million and free cash flow of $319.5 million Raising full year 2026 GAAP diluted earnings per share outlook to $21.71 to $21.87 compared with the prior outlook of $20.73 to $20.99, and raising full year 2026 non-GAAP earnings per share outlook to $25.40 to $25.50, compared with the prior outlook of $24.45 to $24.65 Announced pending acquisition of Varex Imaging Corporation for approximately $1.1 billion Quarter-end consolidated leverage ratio of 0.9x Stock repurchases in September and through October 19th totaling $224.6 million at a weighted average price of $607.03 per share Teledyne today reported third quarter 2026 net sales of $1,684.9 million compared with net sales of $1,539.5 million for the third quarter of 2025, an increase of 9.4%. The third quarter of 2026 net sales included $11.7 million in incremental sales from recent acquisitions. Net income attributable to Teledyne was $272.8 million ($5.82 diluted earnings per share) for the third quarter of 2026 compared with $220.7 million ($4.65 diluted earnings per share) for the third quarter of 2025, an increase of 23.6%. The third quarter of 2026 included $55.2 million of pretax acquired intangible asset amortization expense and $0.2 million of pretax transaction and integration costs. Excluding those items, non-GAAP net income attributable to Teledyne for the third quarter of 2026 was $315.1 million ($6.72 diluted earnings per share). The third quarter of 2025 included $55.1 million of pretax acquired intangible asset amortization expense, $0.7 million of pretax transaction and integration costs, $1.4 million of pretax inventory step-up expense, and $0.2 million of income tax expense from FLIR acquisition-related tax matters. Excluding those items, non-GAAP net income attributable to Teledyne for the third quarter of 2025 was $264.5 million ($5.57 diluted earnings per share). Operating margin was 20.6% for the third quarter of 2026 compared with 18.4% for the third quarter of 2025. Excluding the items discussed above, non-GAAP operating margin for the third quarter of 2026 was 23.9% compared with 22.1% for the third quarter of 2025.

“Our third quarter sales and operating earnings were the strongest in Teledyne’s history,” said Robert Mehrabian, Executive Chairman. “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.”

Review of Operations

Comparisons are with the third quarter of 2025, unless noted otherwise.

Digital Imaging

The Digital Imaging segment’s third quarter 2026 net sales were $903.0 million compared with $785.4 million, an increase of 15.0%. Operating income was $182.7 million for the third quarter of 2026 compared with $123.4 million, an increase of 48.1%. Acquired intangible asset amortization expense for the third quarter of 2026 was $46.9 million compared with $46.8 million. Excluding this item, non-GAAP operating income for the third quarter of 2026 was $229.6 million compared with $170.2 million, an increase of 34.9%.

Third quarter of 2026 net sales increased primarily due to higher sales of infrared imaging detectors, components and subsystems for both defense and commercial applications as well as higher sales of maritime products, integrated defense systems, industrial and scientific imaging systems, X-ray products, and surveillance systems. The third quarter of 2026 included $5.5 million of incremental Digital Imaging sales from a recent acquisition. The increase in operating income primarily reflected higher net sales and favorable product mix.

Instrumentation

The Instrumentation segment’s third quarter 2026 net sales were $370.5 million compared with $363.6 million, an increase of 1.9%. Operating income was $99.6 million for the third quarter of 2026 compared with $98.8 million, an increase of 0.8%. Acquired intangible asset amortization expense for the third quarter of 2026 was $3.0 million compared with $3.3 million. Excluding this item, non-GAAP operating income for the third quarter of 2026 was $102.6 million compared with $102.1 million, an increase of 0.5%.

The third quarter of 2026 net sales increase resulted from an $8.3 million increase in sales of environmental instrumentation primarily due to $6.2 million of incremental sales from a recent acquisition and a $3.4 million increase in sales of marine instrumentation, partially offset by a $4.8 million decrease in sales of electronic test and measurement instrumentation. The increase in operating income primarily reflected the increase in net sales.

Aerospace and Defense Electronics

The Aerospace and Defense Electronics segment’s third quarter 2026 net sales were $287.4 million compared with $275.5 million, an increase of 4.3%. Operating income was $77.8 million for the third quarter of 2026 compared with $70.4 million, an increase of 10.5%. Acquired intangible asset amortization expense for the third quarter of 2026 was $5.3 million compared with $5.0 million. The third quarter of 2025 included $0.5 million of pretax transaction and integration costs with no comparable amount in the third quarter of 2026. Inventory step-up expense for the third quarter of 2025 was $1.4 million with no comparable amount in the third quarter of 2026. Excluding acquired intangible asset amortization expense, pretax transaction and integration costs, and inventory step-up expense, non-GAAP operating income for the third quarter of 2026 was $83.1 million compared with $77.3 million, an increase of 7.5%.

Third quarter of 2026 net sales reflected higher sales of $16.5 million for defense electronics and lower sales of $4.6 million for aerospace electronics. The increase in operating income primarily reflected the impact of higher sales as well as improved margins at recently acquired businesses.

Engineered Systems

The Engineered Systems segment’s third quarter 2026 net sales were $124.0 million compared with $115.0 million, an increase of 7.8%. Operating income was $13.0 million for the third quarter of 2026 compared with $12.2 million, an increase of 6.6%.

Third quarter of 2026 net sales primarily reflected higher sales of engineered products. The increase in operating income was primarily driven by higher net sales.

Additional Financial Information

Cash Flow

Cash provided by operating activities was $352.5 million for the third quarter of 2026 compared with $343.1 million, with the increase driven by favorable operating results in the third quarter of 2026 compared with 2025, partially offset by higher inventory purchases. Depreciation and amortization expense for the third quarter of 2026 was $84.7 million compared with $84.5 million. Stock-based compensation expense for the third quarter of 2026 was $12.2 million compared with $10.5 million.

Capital expenditures for the third quarter of 2026 were $33.0 million compared with $29.2 million. Teledyne received $3.9 million from the exercise of stock options in the third quarter of 2026 compared with $13.0 million.

As of September 27, 2026, net debt was $1,465.4 million, which is calculated as total debt of $2,027.8 million, net of cash and cash equivalents of $562.4 million. As of December 28, 2025, net debt was $2,123.0 million, representing total debt of $2,475.4 million, net of cash and cash equivalents of $352.4 million. During the third quarter of 2026, the company repurchased approximately 0.2 million of its shares for $94.8 million.

As of September 27, 2026, $1,158.4 million was available under the $1.20 billion credit facility after reductions of $41.6 million in outstanding letters of credit.

On August 10, 2026, Teledyne and Varex Imaging Corporation (“Varex”) entered into a definitive agreement under which Teledyne will acquire Varex in a cash transaction valued at approximately $1.1 billion, which considers Varex’s outstanding equity awards and net debt. The company plans to fund the pending acquisition from cash on hand as well as available borrowings under its credit facility. The transaction is expected to close in early 2027 and is subject to customary closing conditions, including regulatory approvals and approval by Varex’s stockholders. After close, Varex will be included within the Digital Imaging segment. Prior to entering into the agreement, Teledyne acquired approximately 1.3 million shares of Varex for $13.9 million, and during the third quarter of 2026, Teledyne recorded a $10.6 million gain within other income (expense), net, related to adjusting these shares to the market price at the end of the quarter.

Third Quarter

Free Cash Flow

2026

2025

Cash provided by operating activities

$

352.5

$

343.1

Capital expenditures for property, plant and equipment

(33.0

)

(29.2

)

Free cash flow

$

319.5

$

313.9

Income Taxes

The effective tax rate for the third quarter of 2026 was 21.3% compared with 19.3%. The third quarter of 2026 included net discrete income tax benefits of $1.6 million compared with $4.9 million.

Other

Corporate expense was $25.9 million for the third quarter of 2026 compared with $22.0 million, with the increase primarily related to higher professional services as well as higher compensation costs, including incentive compensation. Non-service retirement benefit income was $2.6 million for the third quarter of 2026 compared with $2.7 million. Interest expense, net of interest income, was $10.5 million for the third quarter of 2026 compared with $12.6 million, with the decrease due to lower outstanding borrowings compared with the third quarter of 2025. Other income (expense), net, in the third quarter of 2026 primarily consisted of a mark-to-market gain on Varex shares held by Teledyne, partially offset by foreign currency exchange losses. Other income (expense), net, primarily consisted of foreign currency exchange losses in the third quarter of 2025.

Outlook

Based on its current outlook, the company’s management believes that fourth quarter 2026 GAAP diluted earnings per share will be in the range of $5.68 to $5.83, and full year 2026 GAAP diluted earnings per share will be in the range of $21.71 to $21.87. The company’s management further believes that fourth quarter 2026 non-GAAP diluted earnings per share will be in the range of $6.60 to $6.70, and full year 2026 non-GAAP diluted earnings per share will be in the range of $25.40 to $25.50. The non-GAAP outlook excludes certain transaction and integration costs and acquired intangible asset amortization.

Use of Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). We supplement the reporting of our financial results determined under GAAP with certain non-GAAP financial measures. The non-GAAP financial measures provide management, financial analysts and investors with additional useful information for evaluating the company’s performance. The non-GAAP financial measures should be considered in addition to and not as substitutes for financial measures prepared in accordance with GAAP. Further details on reasons we use non-GAAP financial measures, a reconciliation of those measures to the most directly comparable GAAP measures and other information related to those measures are included after our GAAP financial statements.

Forward-Looking Statements Cautionary Notice

This earnings release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management’s beliefs about the financial condition, results of operations, acquisitions, capital expenditures, stock repurchases, product synergies, integration costs, tax matters and businesses of Teledyne in the future. Forward-looking statements involve risks and uncertainties, are based on the current expectations of the management of Teledyne and are subject to uncertainty and changes in circumstances. All statements made in this earnings release that are not historical in nature should be considered forward-looking. Actual results could differ materially from these forward-looking statements.

Many factors could change anticipated results, including: global conflicts including the conflicts in the Middle East as well as the ongoing conflict between Russia and Ukraine, including among other things, higher energy costs and energy supply constraints, disruptions in shipping, supply shortages of critical materials, including aluminum, metals, chemicals and industrial helium supplies, disruptions to air travel, the risk of retaliation against U.S. targets, and slower global growth; the impact of policies of the U.S. Presidential Administration, especially with respect to new and higher tariffs, cutbacks in the funding of government agencies and programs, and the scaling back of environmental and green energy policies; escalating economic and diplomatic tension between China and the United States, including a “trade war” resulting in higher tariffs and restrictions on sales of goods and services; reciprocal tariffs from other countries, especially from members of the European Union; U.S. Government shutdowns, which in the past have resulted in delays in anticipated contract awards, delayed payments of invoices, and delays in the issuance of export and other licenses; the inability to develop and market new competitive products; changes in relevant tax and other laws; foreign currency exchange risks; rising interest rates; risks associated with indebtedness, as well as our ability to reduce indebtedness and the timing thereof; the impact of semiconductor and other supply chain shortages; higher inflation, including wage competition and higher shipping costs; labor shortages and competition for skilled personnel; inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements and the providing of estimates of financial measures, in accordance with GAAP and related standards; disruptions in the global economy; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor, and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from existing and future deficit reduction measures or changes to U.S. and foreign government spending and budget priorities triggered by inflation, and economic conditions; the imposition and expansion of, and responses to, trade sanctions and tariffs; threats to the security of our confidential and proprietary information, including cybersecurity threats; risks related to artificial intelligence; natural and man-made disasters; and our ability to achieve emission reduction targets and decrease our carbon footprint. Volatile oil and natural gas prices, as well as instability in the Middle East, Latin America or other oil producing regions, could negatively affect our businesses that supply the oil and gas industry. Weakness in the commercial aerospace industry negatively affects the markets of our commercial aviation businesses. Lower aircraft production rates at Boeing or Airbus could result in reduced sales of our commercial aerospace products. In addition, financial market fluctuations affect the value of the company’s pension assets. Changes in the policies of U.S. and foreign governments, including economic sanctions or in regard to support for the Ukraine or Middle East conflicts, could result, over time, in reductions or realignment in defense or other government spending and further changes in programs in which the company participates.

While the company’s growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain key management and customers, and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses internationally, including those arising from U.S. and foreign government policy changes or actions and exchange rate fluctuations.

Additional factors that could cause results to differ materially from those described above can be found in Teledyne’s Annual Report on Form 10-K for the year ended December 28, 2025, as well as subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all of which are on file with the U.S. Securities and Exchange Commission (“SEC”) and available in the “Investors” section of Teledyne’s website, teledyne.com, under the heading “Investor Information” and in other documents Teledyne files with the SEC.

Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “believes”, or “expect”, that convey the uncertainty of future events or outcomes. Teledyne assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or otherwise.

A live webcast of Teledyne’s third quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Wednesday, October 21, 2026. To access the call, go to www.teledyne.com/investors/events-and-presentations approximately 10 minutes before the scheduled start time. A replay will also be available for one month starting at 12:00 p.m. (Eastern) on Wednesday, October 21, 2026.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

FOR THE THIRD QUARTER AND NINE MONTHS ENDED

SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — in millions, except per share amounts)

Third Quarter

Nine Months

2026

2025

2026

2025

Net sales

$

1,684.9

$

1,539.5

$

4,907.5

$

4,503.1

Costs and expenses:

Cost of sales

945.5

880.0

2,756.2

2,579.5

Selling, general and administrative

258.4

238.2

754.5

701.5

Research and development

78.6

83.4

253.4

240.1

Acquired intangible asset amortization

55.2

55.1

168.8

161.7

Total costs and expenses

1,337.7

1,256.7

3,932.9

3,682.8

Operating income (loss)

347.2

282.8

974.6

820.3

Interest and debt income (expense), net

(10.5

)

(12.6

)

(36.4

)

(47.5

)

Non-service retirement benefit income (expense), net

2.6

2.7

7.9

8.2

Other income (expense), net

7.5

0.9

0.7

(7.7

)

Income (loss) before income taxes

346.8

273.8

946.8

773.3

Provision (benefit) for income taxes

74.0

52.9

195.5

153.2

Net income (loss) including noncontrolling interest

272.8

220.9

751.3

620.1

Less: Net income (loss) attributable to noncontrolling interest

—

0.2

—

0.9

Net income (loss) attributable to Teledyne

$

272.8

$

220.7

$

751.3

$

619.2

Diluted earnings per common share

$

5.82

$

4.65

$

16.02

$

13.06

Weighted average diluted common shares outstanding

46.9

47.5

46.9

47.4

These condensed consolidated financial statements were prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

SUMMARY OF SEGMENT NET SALES AND OPERATING INCOME (LOSS)

FOR THE THIRD QUARTER AND NINE MONTHS ENDED

SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — $ in millions)

Third Quarter

% Change

Nine Months

% Change

2026

2025

2026

2025

Net sales:

Digital Imaging

$

903.0

$

785.4

15.0

%

$

2,588.6

$

2,313.4

11.9

%

Instrumentation

370.5

363.6

1.9

%

1,119.7

1,074.5

4.2

%

Aerospace and Defense Electronics

287.4

275.5

4.3

%

851.3

782.8

8.8

%

Engineered Systems

124.0

115.0

7.8

%

347.9

332.4

4.7

%

Total net sales

$

1,684.9

$

1,539.5

9.4

%

$

4,907.5

$

4,503.1

9.0

%

Operating income (loss):

Digital Imaging

$

182.7

$

123.4

48.1

%

$

494.6

$

365.3

35.4

%

Instrumentation

99.6

98.8

0.8

%

289.4

293.1

(1.3

)%

Aerospace and Defense Electronics

77.8

70.4

10.5

%

223.7

192.7

16.1

%

Engineered Systems

13.0

12.2

6.6

%

39.8

35.1

13.4

%

Corporate expense

(25.9

)

(22.0

)

17.7

%

(72.9

)

(65.9

)

10.6

%

Operating income (loss)

347.2

282.8

22.8

%

974.6

820.3

18.8

%

Interest and debt income (expense), net

(10.5

)

(12.6

)

(16.7

)%

(36.4

)

(47.5

)

(23.4

)%

Non-service retirement benefit income (expense), net

2.6

2.7

(3.7

)%

7.9

8.2

(3.7

)%

Other income (expense), net

7.5

0.9

733.3

%

0.7

(7.7

)

109.1

%

Income (loss) before income taxes

346.8

273.8

26.7

%

946.8

773.3

22.4

%

Provision (benefit) for income taxes

74.0

52.9

39.9

%

195.5

153.2

27.6

%

Net income (loss) including noncontrolling interest

272.8

220.9

23.5

%

751.3

620.1

21.2

%

Less: Net income (loss) attributable to noncontrolling interest

—

0.2

(100.0

)%

—

0.9

(100.0

)%

Net income (loss) attributable to Teledyne

$

272.8

$

220.7

23.6

%

$

751.3

$

619.2

21.3

%

These condensed consolidated financial statements were prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

September 27, 2026

December 28, 2025

(Unaudited)

ASSETS

Cash and cash equivalents

$

562.4

$

352.4

Accounts receivable and unbilled receivables, net

1,384.6

1,367.0

Inventories, net

1,220.3

1,043.3

Prepaid expenses and other current assets

349.1

292.9

Total current assets

3,516.4

3,055.6

Property, plant and equipment, net

840.5

839.1

Goodwill and acquired intangible assets, net

10,605.9

10,787.7

Prepaid pension assets

299.9

286.2

Other assets, net

302.3

316.7

Total assets

$

15,565.0

$

15,285.3

LIABILITIES AND EQUITY

Accounts payable

$

520.4

$

486.6

Accrued liabilities

1,004.1

923.4

Current portion of long-term debt

0.1

450.1

Total current liabilities

1,524.6

1,860.1

Long-term debt, net of current portion

2,027.7

2,025.3

Other long-term liabilities

877.3

886.0

Total liabilities

4,429.6

4,771.4

Redeemable noncontrolling interest

—

—

Total stockholders’ equity

11,135.4

10,513.9

Total liabilities and equity

$

15,565.0

$

15,285.3

These condensed consolidated financial statements were prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THIRD QUARTER ENDED SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — in millions)

Third Quarter

2026

2025

Operating Activities

Net income (loss) including noncontrolling interest

$

272.8

$

220.9

Depreciation and amortization

84.7

84.5

Stock-based compensation

12.2

10.5

Changes in operating assets and liabilities and other operating activity

(17.2

)

27.2

Net cash provided by (used in) operating activities

352.5

343.1

Investing Activities

Purchases of property, plant and equipment

(33.0

)

(29.2

)

Purchases of businesses, net of cash acquired

—

(6.6

)

Other investing, net

(8.6

)

0.1

Net cash provided by (used in) investing activities

(41.6

)

(35.7

)

Financing activities

Proceeds from (payments on) fixed rate senior notes

—

(77.7

)

Proceeds from (payments on) other debt

(0.3

)

(0.4

)

Proceeds from exercise of stock options

3.9

13.0

Acquisition of noncontrolling interest

—

(27.2

)

Purchases of treasury stock, including excise tax

(94.8

)

—

Other financing, net

0.1

3.6

Net cash provided by (used in) financing activities

(91.1

)

(88.7

)

Effect of exchange rate changes on cash

2.5

(1.0

)

Changes in cash and cash equivalents

222.3

217.7

Cash and cash equivalents—beginning of period

340.1

310.9

Cash and cash equivalents—end of period

$

562.4

$

528.6

These condensed consolidated financial statements were prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

FOR THE THIRD QUARTER AND NINE MONTHS ENDED

SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — in millions, except per share amounts)

Third Quarter 2026

Third Quarter 2025

Income (Loss) Before Income Taxes

Net Income (Loss) Attributable to Teledyne

Diluted Earnings per Common Share

Income (Loss) Before Income Taxes

Net Income (Loss) Attributable to Teledyne

Diluted Earnings per Common Share

GAAP

$

346.8

$

272.8

$

5.82

$

273.8

$

220.7

$

4.65

Adjusted for specified items:

Transaction and integration costs

0.2

0.1

—

0.7

0.6

0.01

Inventory step-up expense

—

—

—

1.4

1.0

0.02

Acquired intangible asset amortization

55.2

42.2

0.90

55.1

42.0

0.88

FLIR acquisition-related tax matters

—

—

—

—

0.2

0.01

Non-GAAP

$

402.2

$

315.1

$

6.72

$

331.0

$

264.5

$

5.57

Nine Months 2026

Nine Months 2025

Income (Loss) Before Income Taxes

Net Income (Loss) Attributable to Teledyne

Diluted Earnings per Common Share

Income (Loss) Before Income Taxes

Net Income (Loss) Attributable to Teledyne

Diluted Earnings per Common Share

GAAP

$

946.8

$

751.3

$

16.02

$

773.3

$

619.2

$

13.06

Adjusted for specified items:

Transaction and integration costs

0.6

0.4

0.01

9.4

7.1

0.15

Inventory step-up expense

—

—

—

3.2

2.4

0.05

Acquired intangible asset amortization

168.8

129.1

2.75

161.7

123.6

2.61

FLIR acquisition-related tax matters

—

—

—

—

(7.5

)

(0.16

)

Non-GAAP

$

1,116.2

$

880.8

$

18.78

$

947.6

$

744.8

$

15.71

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

FOR THE THIRD QUARTER AND NINE MONTHS ENDED

SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — $ in millions)

Third Quarter 2026

Third Quarter 2025

Operating Income (Loss)

Operating Margin

Operating Income (Loss)

Operating Margin

GAAP

$

347.2

20.6

%

$

282.8

18.4

%

Adjusted for specified items:

Transaction and integration costs

0.2

0.7

Inventory step-up expense

—

1.4

Acquired intangible asset amortization

55.2

55.1

Non-GAAP

$

402.6

23.9

%

$

340.0

22.1

%

Nine Months 2026

Nine Months 2025

Operating Income (Loss)

Operating Margin

Operating Income (Loss)

Operating Margin

GAAP

$

974.6

19.9

%

$

820.3

18.2

%

Adjusted for specified items:

Transaction and integration costs

0.6

9.4

Inventory step-up expense

—

3.2

Acquired intangible asset amortization

168.8

161.7

Non-GAAP

$

1,144.0

23.3

%

$

994.6

22.1

%

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

FOR THE THIRD QUARTER AND NINE MONTHS ENDED

SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025

(Unaudited — in millions)

Third Quarter 2026

GAAP Operating Income (Loss)

Acquired Intangible Asset Amortization

Inventory

Step-up Expense

Transaction and Integration Costs

Non-GAAP Operating Income (Loss)

Digital Imaging

$

182.7

$

46.9

$

—

$

—

$

229.6

Instrumentation

99.6

3.0

—

—

102.6

Aerospace and Defense Electronics

77.8

5.3

—

—

83.1

Engineered Systems

13.0

—

—

—

13.0

Corporate expense

(25.9

)

—

—

0.2

(25.7

)

Total

$

347.2

$

55.2

$

—

$

0.2

$

402.6

Third Quarter 2025

GAAP Operating Income (Loss)

Acquired Intangible Asset Amortization

Inventory

Step-up Expense

Transaction and Integration Costs

Non-GAAP Operating Income (Loss)

Digital Imaging

$

123.4

$

46.8

$

—

$

—

$

170.2

Instrumentation

98.8

3.3

—

—

102.1

Aerospace and Defense Electronics

70.4

5.0

1.4

0.5

77.3

Engineered Systems

12.2

—

—

—

12.2

Corporate expense

(22.0

)

—

—

0.2

(21.8

)

Total

$

282.8

$

55.1

$

1.4

$

0.7

$

340.0

Nine Months 2026

GAAP Operating Income (Loss)

Acquired Intangible Asset Amortization

Inventory

Step-up Expense

Transaction and Integration Costs

Non-GAAP Operating Income (Loss)

Digital Imaging

$

494.6

$

142.3

$

—

$

—

$

636.9

Instrumentation

289.4

9.9

—

—

299.3

Aerospace and Defense Electronics

223.7

16.6

—

—

240.3

Engineered Systems

39.8

—

—

—

39.8

Corporate expense

(72.9

)

—

—

0.6

(72.3

)

Total

$

974.6

$

168.8

$

—

$

0.6

$

1,144.0

Nine Months 2025

GAAP Operating Income (Loss)

Acquired Intangible Asset Amortization

Inventory

Step-up Expense

Transaction and Integration Costs

Non-GAAP Operating Income (Loss)

Digital Imaging

$

365.3

$

138.5

$

—

$

—

$

503.8

Instrumentation

293.1

9.8

—

—

302.9

Aerospace and Defense Electronics

192.7

13.4

3.2

4.3

213.6

Engineered Systems

35.1

—

—

—

35.1

Corporate expense

(65.9

)

—

—

5.1

(60.8

)

Total

$

820.3

$

161.7

$

3.2

$

9.4

$

994.6

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited — in millions, except per share amounts)

September 27, 2026

December 28, 2025

Current portion of long-term debt

$

0.1

$

450.1

Long-term debt

2,027.7

2,025.3

Total debt — non-GAAP

2,027.8

2,475.4

Less cash and cash equivalents

(562.4

)

(352.4

)

Net debt — non-GAAP

$

1,465.4

$

2,123.0

Fourth Quarter 2026

Full Year 2026

Low

High

Low

High

GAAP Diluted Earnings per Common Share Outlook

$

5.68

$

5.83

$

21.71

$

21.87

Adjusted for specified items:

Transaction and integration costs

—

—

0.02

0.01

Acquired intangible asset amortization

0.92

0.87

3.67

3.62

Non-GAAP Diluted Earnings per Common Share Outlook

$

6.60

$

6.70

$

25.40

$

25.50

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, and to aid in comparability with our competitors, investors and financial analysts may wish to consider the impact of certain items resulting from our acquisitions which have an infrequent or non-recurring impact on operations or assist in understanding our operations pre-acquisition. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management, investors and financial analysts with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain expenses and benefits. Management believes these non-GAAP financial measures also provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and in comparing this performance to our peers and competitors. The company’s diluted earnings per common share outlook guidance is also presented on a non-GAAP basis.

The non-GAAP financial measures are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors also should compensate for those limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies. The non-GAAP financial measures are also used by our management to evaluate our operating performance and benchmark our results against our historical performance and the performance of our peers.

Our non-GAAP measures are as follows:

Non-GAAP income before income taxes, net income and diluted earnings per common share

These non-GAAP measures provide a supplemental view of income before taxes, net income and diluted earnings per common share. These non-GAAP measures exclude certain transaction and integration costs, inventory step-up expense, acquired intangible asset amortization, remeasurement of deferred taxes related to acquired intangible assets due to changes in tax laws, and tax benefits or costs related to the settlement or other resolution of the FLIR tax reserves. We also adjust for any post-acquisition interest on certain income tax reserves related to FLIR. We adjust for any income tax impact related to these items to take into account the tax treatment and related tax rate and changes in tax rates that apply to each adjustment in the applicable tax jurisdiction. Generally, this results in the tax impact at the U.S. marginal tax rate for certain adjustments, including the majority of amortization of intangible assets, whereas the tax impact of other adjustments, including transaction expenses, depend on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rates in those jurisdictions. We believe these measures provide investors and management with additional means to understand and evaluate the operating results of our business by adjusting for certain expenses and benefits and present an alternative view of our performance compared with prior periods.

Non-GAAP operating income and operating margin

We define non-GAAP operating margin as non-GAAP operating income divided by net sales. These non-GAAP measures exclude certain transaction and integration costs, inventory step-up expense, and acquired intangible asset amortization. We believe these measures provide investors and management with additional means to understand and evaluate the operating results of our business by adjusting for certain expenses and other items and present an alternative view of our performance compared with prior periods.

Non-GAAP total debt and net debt

We define non-GAAP total debt as the sum of the current portion of long-term debt and other debt and long-term debt. We define net debt as the difference between non-GAAP total debt less cash and cash equivalents. The company believes that this non-GAAP information is useful to assist investors and management in analyzing the company’s liquidity.

Non-GAAP diluted earnings per common share outlook

This non-GAAP measure represents our earnings per common share outlook for the fourth quarter of 2026 and total year 2026 on a fully diluted basis, excluding certain transaction and integration costs and acquired intangible asset amortization for all acquisitions.

Non-GAAP cash provided by operations and free cash flow

We define free cash flow as cash provided by operating activities (a measure prescribed by GAAP) less capital expenditures for property, plant and equipment. We believe that this non-GAAP information is useful to assist management and the investment community in analyzing the company’s ability to generate cash flow.

Non-GAAP line items used in tables

Management excludes the effect of each of the acquisition-related items identified below to arrive at the applicable non-GAAP financial measure referenced in the tables for the reasons set forth below with respect to that item:

Acquired intangible asset amortization – We believe that excluding the amortization of acquired intangible assets, which primarily represents purchased technology and customer relationships, as well as purchase order and contract backlog, provides an alternative way for investors to compare our operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. However, we note that companies that grow internally will incur costs to develop intangible assets that will be expensed in the period incurred, which may make a direct comparison more difficult. Transaction and integration costs – Included in our GAAP presentation of cost of sales and selling, general and administrative expenses are substantial expenses (or benefits) incurred with acquisitions and primarily include legal, accounting and other professional fees as well as integration-related costs such as employee separation costs, facility consolidation costs and facility lease impairments. Employee separation costs include required change-in-control payments, cash settlement of employee and director stock awards, as well as other employee severance amounts. We exclude those costs from our non-GAAP measures because we believe they do not reflect our ongoing financial performance. Inventory step-up expense – The purchase accounting entries associated with our acquisitions require us to record inventory at its fair value, which is sometimes substantial and greater than the previous book value of inventory. Included in our GAAP presentation, the increase in inventory value is amortized to cost of sales over the period that the related inventory is sold. In 2025, we excluded inventory step-up amortization related to the Micropac and Qioptiq acquisitions from our non-GAAP measures because it is a non-cash expense that we do not believe is indicative of our ongoing operating results. FLIR acquisition-related tax matters – Included in our tax provision is post-acquisition interest on certain income tax reserves related to FLIR, as well as the tax benefits or costs related to the settlement or other resolution of the FLIR tax reserves. We exclude those impacts from our non-GAAP measures because we believe it does not reflect our ongoing financial performance. More News From Teledyne Technologies Incorporated

OAK RIDGE, Tenn.--(BUSINESS WIRE)--Teledyne FLIR Defense, part of Teledyne Technologies Incorporated (NYSE:TDY), today announced that the Department of Homeland Security's Countering Weapons of Mass Destruction Office (CWMD) has placed a $6 million order of identiFINDER® R425 handheld radionuclide identification devices. Managed through the Federal Emergency Management Agency (FEMA), this most recent award builds on the company's 19-year history supporting CWMD's Securing the Cities initiative.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Teledyne Technologies Incorporated (NYSE:TDY) will hold a conference call to discuss its third quarter 2026 results on Wednesday, October 21, 2026, at 8:00 a.m. Pacific. A press release with the third quarter financial results will be issued before the opening of the New York Stock Exchange on Wednesday, October 21, 2026. To access the call, go to www.teledyne.com/investors/events-and-presentations approximately ten minutes before the scheduled start time.

Key Takeaways HEICO benefits from aftermarket demand, acquisitions and record backlog, supporting its near-term outlook.ATI's record backlog and capacity additions are strengthening growth across aerospace and defense programs.Teledyne's $5B backlog and acquisition strategy support revenue visibility across key end markets. The aerospace-defense equipment industry remains supported by strategic M&A activity and resilient air-travel demand, although persistent supply-chain constraints pose risks. Recent acquisitions are expanding product offerings, capabilities and exposure to defense and aerospace markets, while rising passenger traffic is increasing aircraft utilization and supporting demand for replacement parts, avionics, engines and other components.

The Zacks-defined Aerospace-Defense Equipment industry is currently in the top 11% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Here, we recommend three defense equipment bigwigs with a favorable Zacks Rank that have robust short-term price upside potential. These are: HEICO Corp. (HEI - Free Report) , ATI Inc. (ATI - Free Report) and Teledyne Technologies Inc. (TDY - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks year to date.

Image Source: Zacks Investment Research

HEICO Corp.Zacks Rank #1 HEICO has been witnessing sustained demand for aftermarket replacement parts, repair services and specialty products, and its electronics portfolio is also growing, aided by recent acquisitions. 

HEI maintains a strong presence across defense, space and select homeland security markets, while recent acquisitions broaden its portfolio. Organic growth remains healthy across both operating segments. 

HEI’s expanded credit capacity and cash generation provide flexibility to pursue transactions while maintaining discipline on strategic fit, culture and price. Record backlog and requests for faster deliveries reinforce the near-term outlook.

HEICO has an expected revenue and earnings growth rate of 12.6% and 13.9%, respectively, for the next year (ending October 2027). The Zacks Consensus Estimate for the next year’s earnings has improved 5.2% over the last 60 days. 

Robust Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 33.6% from the last closing price of $295.78. The brokerage target price is currently in the range of $305-$491. This indicates a maximum upside of 66% and no downside.

ATI Inc.Zacks Rank #1 ATI has been benefiting from strong aerospace and defense demand supporting record backlog, richer mix and visibility under long-term agreements. Jet-engine and defense programs remain growth engines, while next-generation platforms and nickel and titanium capacity additions extend the runway. 

ATI’s elevATIon operating model is lifting throughput, and the transformed AA&S segment is broadening margin and cash generation. Higher full-year earnings and free-cash-flow guidance reinforce the earnings base. ATI’s durable demand, capacity expansion and operating execution are other positives.

ATI has an expected revenue and earnings growth rate of 12.9% and 57.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 9.7% over the last 60 days. 

Robust Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 29.2% from the last closing price of $189.19. The brokerage target price is currently in the range of $141-$270. This indicates a maximum upside of 42.7% and a downside of 25.5%.

Teledyne Technologies Inc.Zacks Rank #2 Teledyne Technologies’ long-term growth prospects remain supported by rising global defense spending, increasing demand for advanced sensing and imaging technologies and healthy demand across marine, space and commercial aerospace end markets. 

A record backlog of approximately $5 billion and a disciplined acquisition strategy provide solid revenue visibility and strengthen TDY’s technology portfolio. A steady recovery in commercial air travel is a positive. 

Teledyne Technologies has an expected revenue and earnings growth rate of 7.4% and 12.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 60 days. 

Robust Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 25.2% from the last closing price of $604.15. The brokerage target price is currently in the range of $640-$877. This indicates a maximum upside of 45.2% and no downside.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Teledyne Imaging Sensors (TIS), a part of Teledyne Technologies Incorporated and a global leader in advanced infrared imaging solutions for space and defense applications, today announced a milestone in support of the U.S. Space Force and Space Development Agency's (SDA) Proliferated Warfighter Space Architecture (PWSA). Through its participation in SDA Tracking Layer programs, Teledyne has delivered more than 1.3 billion infrared detector pixels for missi.

NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Varex Imaging Corporation (NasdaqGS: VREX) to Teledyne Technologies Incorporated (NYSE: TDY). Under the terms of the proposed transaction, shareholders of Varex will receive $18.90 in cash for each share of Varex that they own. KSF is seeking to determine whether this consideration and the proc.

WILSONVILLE, Ore.--(BUSINESS WIRE)--Teledyne FLIR, part of Teledyne Technologies Incorporated (NYSE:TDY), today announced that its FLIR A40, A50 and A70 (Axx-Series) thermal imaging cameras are the first models to achieve UL 2684 listing. This new classification brings certified early detection thermal imaging into code-compliant fire detection and alarm systems, a significant expansion in early identification and response capabilities in the fire mitigation industry. The UL 2684 listing allows.

SEVILLE, Spain--(BUSINESS WIRE)--Teledyne e2v, a Teledyne Technologies (NYSE:TDY) company and global innovator of imaging solutions, today announced Nexora™, a new family of CMOS image sensors that delivers high sensitivity, high-speed imaging and low power consumption for demanding machine vision applications. Available in 12 MP (4,096 by 3,072) and 16 MP (4,096 by 4,096) resolutions, in both monochrome and color versions, Nexora is designed for applications that require sharp images at very h.

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The two climate-monitoring missions will provide observations of Earth’s oceans, land surfaces and vegetation.

CHELMSFORD, England--(BUSINESS WIRE)--Teledyne Space Imaging technology was successfully launched aboard two major European Space Agency (ESA) Earth observation missions; Sentinel-3C and the Fluorescence Explorer (FLEX). The satellites launched together this morning aboard a Vega C rocket from Europe’s Spaceport in French Guiana.

Sentinel-3C: Continuing long-term Earth observation

Designed and developed by ESA, and operated by EUMETSAT, Sentinel-3C is the third satellite in the Sentinel-3 series. The Sentinel missions are part of Copernicus, the EU Space Programme’s Earth observation campaign.

Teledyne supplied five CCD55-20 detectors for Sentinel-3C’s Ocean and Land Colour Instrument (OLCI). The detectors – back-illuminated, frame transfer CCDs optimised for hyperspectral imaging – observe in the visible to NIR, from 0.4 to 1.04 µm, and will assist with mapping ocean colour, vegetation cover, and land use.

Elinor Mitchell, Product Engineering Team Leader of the CCD55-20 at Teledyne Space Imaging, said, “We’re delighted to see the successful launch of Sentinel-3C, and our imaging technology continuing to play a vital role in helping support ocean forecasting systems, environmental monitoring and observing changes in atmospheric composition.”

Sentinel-3A was launched in 2016 and Sentinel-3B followed in 2018. Once fully commissioned, Sentinel-3C is expected to take over from Sentinel-3A, helping to ensure continuity of observations from the Sentinel-3 programme.

FLEX: Observing vegetation from space

ESA’s Fluorescence Explorer (FLEX) launched alongside Sentinel-3C.

Teledyne supplied three CCD325 detectors for the satellite’s Fluorescence Imaging Spectrometer (FLORIS). These detectors image in the spectral range from 0.5 to 0.78 µm. The imaging sensors have been engineered to measure the fluorescent signal given off by plants during photosynthesis. The amount of fluorescence will provide information on the plant’s photosynthetic efficiency, health, and stress. By measuring this signal, its strength also serves as a direct indicator of how much carbon dioxide is being pulled from the atmosphere during this natural process and will help us understand how well an ecosystem is working.

This data will offer scientists new information about the health and functioning of terrestrial vegetation and how plants interact with the wider Earth system – such as carbon and water cycles – processes that are essential for life on this planet.

Tracy Phillips, Principal Project Manager of the CCD325 at Teledyne Space Imaging, said, “Seeing FLEX successfully launch is an exciting moment for our team and everyone who has contributed to the mission. FLEX will give scientists a new way to observe the process of photosynthesis and understand the movement of carbon between plants and our atmosphere. We’re proud that Teledyne detectors will play a key role in generating data that will support important topics such as agricultural management and food security.”

Sentinel-3C and FLEX are developed and procured by the European Space Agency. The view expressed herein can in no way be taken to reflect the official opinion of the European Space Agency.

About Teledyne Space Imaging

Teledyne Space Imaging of Teledyne Technologies Incorporated (NYSE:TDY) has a distinguished legacy in developing space-qualified imaging sensors, focal plane arrays, and integrated camera systems for leading space agencies and observatories including NASA, ESA, JAXA, and KASA. Its heritage spans more than 250 space projects, along with a wide range of commercial space applications. Teledyne Space Imaging designs, tests and manufactures a range of CCD, CMOS, and IR detectors with optical filters and package options to meet every performance requirement.

About Teledyne

Teledyne is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. Teledyne's operations are primarily located in the United States, Canada, the United Kingdom, and Western and Northern Europe. For more information, visit Teledyne’s website at www.teledyne.com

More News From Teledyne

Back to Newsroom

GRENOBLE, France--(BUSINESS WIRE)--Teledyne e2v, a Teledyne Technologies (NYSE:TDY) company and global innovator of imaging solutions, announces Perciva™ ToF, its new industrial grade 3D Time-of-Flight (ToF) camera. Designed for reliable operation in demanding environments, Perciva ToF combines high-performance depth sensing, on-camera processing, and flexible integration for a wide range of applications, including logistics, robotics, inspection, and surveillance. Powered by Teledyne e2v's Hyd.

Teledyne Technologies Incorporated (TDY) Jefferies Global Industrials Conference 2026 September 10, 2026 8:50 AM EDT

Company Participants

Jason VanWees - Vice Chairman

Conference Call Participants

Adam Samuelson - Jefferies LLC, Research Division

Presentation

Adam Samuelson
Jefferies LLC, Research Division

Well, good morning, everyone. Thank you all for joining. My name is Adam Samuelson. I'm Senior Vice President on the Aerospace and Defense equity research team here at Jefferies. I want to welcome you all to the second day of our Annual Jefferies Industrials Conference here in New York. Today, we're lucky enough to have Teledyne and their Vice Chairman, Jason VanWees here representing the company.

So Jason, thank you for joining.

Question-and-Answer Session

Adam Samuelson
Jefferies LLC, Research Division

Maybe just to start at a high level for newer investors, how do you define Teledyne today? Portfolio spans sensors, imaging, instrumentation, defense electronics, Engineered Systems, and other vertically integrated platforms from space to deep sea, probably missed a bunch of things in there as well. Kind of how do you -- how would you frame what Teledyne does and kind of why the model is differentiated?

Jason VanWees
Vice Chairman

Yes, sure. So again, Jason VanWees, Vice Chairman. I've been at Teledyne a little over 27 years as of last month. Principally, I'm responsible for M&A, capital allocation, I suppose, if you would like. And sometimes people are left thinking that Teledyne is very complicated and some of that's my fault because I'm willing to tell everybody everything we do in every market we serve and vertical and things like that, which really isn't the case.

It may sound counterintuitive after 75 acquisitions that we're actually a simpler company, but we are because virtually everything we bought has been a double-down acquisition in a market we're already in or a

LINCOLN, England--(BUSINESS WIRE)--Teledyne Energetics UK, part of Teledyne Technologies Incorporated (NYSE:TDY), today announced a $15.4 million contract with a Europe-based defence technology manufacturer to supply specialist energetics products for advanced unmanned systems. The award positions Teledyne as a critical industrial partner in the acceleration of European drone dominance, supporting the development and manufacture of next-generation platforms at scale. The agreement supports a Eu.

ST ASAPH, Wales--(BUSINESS WIRE)--Teledyne Technologies Incorporated (NYSE:TDY) announced that Teledyne Qioptiq has received the first option from the German Bundeswehr for PHOENIX-XR cooled weapons sights valued at more than $21 million. This is part of the previously announced framework agreement between Germany and Teledyne Qioptiq valued at up to $175 million. Upon completion of this tranche, Teledyne Qioptiq will have delivered more than 1,000 PHOENIX-XR units to the German Ministry of Def.

New partnership will bring Everspin 256Mb PERSYST MRAM into Teledyne HiRel Semiconductors’ memory solutions for mission-critical systems

CHANDLER, Ariz., & GARLAND, Texas--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world’s leading developer and manufacturer of MRAM solutions, and Teledyne HiRel Semiconductors (Teledyne HiRel), a business unit of Teledyne Technologies Incorporated (NYSE: TDY) and a leading supplier of high-reliability semiconductor solutions, today announced a strategic partnership to accelerate adoption of Everspin’s MRAM in aerospace, defense and other demanding systems. This collaboration will begin with the 256Mb PERSYST spin-transfer torque MRAM (STT-MRAM), a non-volatile memory that combines RAM-like speed with the ability to retain data through power loss, system resets and unexpected interruptions.

Through the new partnership, Teledyne HiRel will initially offer Everspin’s 256Mb PERSYST STT-MRAM as part of its memory products portfolio for military and aerospace customers, with target applications including avionics, VPX and single-board computer platforms, radar and electronic warfare payloads, satellite electronics, autonomous systems and other next-generation electronic solutions. The agreement also covers other PERSYST STT-MRAM products, including 64Mb and 128Mb options, giving customers additional density choices as program requirements vary.

As component availability, lifecycle planning and long-term supply become greater considerations for programs with long service lives, customers are evaluating persistent memory options that enable fast writes, high endurance and data retention through power loss. These capabilities are especially important for startup, configuration storage, event logging, recovery and other functions that must remain available throughout the product’s service life.

Because PERSYST enables frequent writes with high endurance and retains data without battery backup, it can replace or complement NOR flash in applications that need faster updates or power-loss-safe storage, reducing a program’s reliance on battery-backed SRAM, hold-up power or capacitor-backed memory schemes. By combining RAM-like access with non-volatility, MRAM can also help simplify architectures that would otherwise require separate volatile memory, non-volatile storage, backup power, wear-leveling strategies or complex data-protection circuitry. Teledyne HiRel will back this new capability with product guidance, screening flows, qualification documentation, procurement support and obsolescence management.

“Aerospace and defense programs require memory solutions that can sustain long operating lifecycles, documented qualification requirements and reliable performance in harsh environments,” said Mont Taylor, Vice President of Business Development at Teledyne HiRel Semiconductors. “By adding Everspin’s PERSYST STT-MRAM to our non-volatile memory portfolio, we give customers a qualified path to specify persistent memory for their most critical applications.”

“PERSYST MRAM delivers a unique combination of endurance, instant-on data retention and high-performance operation,” said Sanjeev Aggarwal, President and CEO of Everspin Technologies. “Through our partnership with Teledyne HiRel, customers gain access not only to advanced MRAM technology, but also to the screening expertise and supply continuity needed throughout extended program timelines. This collaboration helps reduce adoption barriers while providing confidence in long-term product availability.”

PERSYST MRAM products will ship from Teledyne HiRel Semiconductors’ facility in Milpitas, California, with customer availability anticipated in the fourth quarter of 2026.

About Everspin Technologies

Everspin Technologies, Inc. is the world’s leading provider of magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance, non-volatile memory for Industrial IoT, data centers and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com.

About Teledyne HiRel Semiconductors and Teledyne Aerospace & Defense Electronics

Teledyne HiRel Semiconductors, part of Teledyne Aerospace & Defense Electronics, delivers high-reliability semiconductor solutions for aerospace, defense, space and industrial applications, with a focus on solving critical customer challenges through standard, semicustom and fully custom offerings. Teledyne Aerospace & Defense Electronics provides a broad portfolio of highly engineered solutions for demanding environments across avionics, energetics, electronic warfare, missiles, radar and surveillance, satellite communications, air and space, and test and measurement.

About Teledyne Technologies

Teledyne Technologies is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics and engineered systems. Teledyne’s operations are primarily located in the United States, the United Kingdom, Canada, and Western and Northern Europe. For more information, visit www.teledyne.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding future events or results. Forward-looking statements are identified by words such as “will,” “expects” or similar expressions and include, but are not limited to, statements regarding Everspin’s anticipated business plans and business strategy. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, as well as in Everspin’s subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made, and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.

More News From Everspin Technologies, Inc.

GOLETA, Calif.--(BUSINESS WIRE)--Teledyne FLIR OEM, part of Teledyne Technologies Incorporated (NYSE:TDY), announced it was selected to support the U.S. Army's Delivering Unmatched Thermal Capability Hastened (DUTCH) initiative, led by the Office of the Assistant Secretary of War for Critical Technologies and the U.S. Army Combat Capabilities Development Command (DEVCOM) C5ISR Center, to enhance next-generation uncooled thermal infrared (IR) sensing for defense applications.The DUTCH initiative.

Bank of Nova Scotia acquired a new stake in shares of Teledyne Technologies Incorporated (NYSE:TDY – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,509 shares of the scientific and technical instruments company’s stock, valued at approximately $3,675,000.

Several other institutional investors have also modified their holdings of TDY. Elevation Point Wealth Partners LLC purchased a new stake in Teledyne Technologies during the 2nd quarter valued at $878,000. Daiichi Life Insurance Co. Ltd. bought a new stake in Teledyne Technologies in the second quarter worth $9,773,000. Commerce Bank purchased a new position in Teledyne Technologies during the second quarter worth $1,216,000. Northwestern Mutual Wealth Management Co. purchased a new position in Teledyne Technologies during the second quarter worth $351,000. Finally, Quantbot Technologies LP bought a new position in Teledyne Technologies during the second quarter valued at $115,000. 91.58% of the stock is owned by institutional investors.

Analysts Set New Price Targets Several equities research analysts have recently issued reports on TDY shares. Barclays raised their target price on shares of Teledyne Technologies from $614.00 to $640.00 and gave the stock an “equal weight” rating in a report on Friday, July 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of Teledyne Technologies in a report on Wednesday, August 19th. Jefferies Financial Group raised shares of Teledyne Technologies to a “strong-buy” rating in a research report on Wednesday, June 10th. Stifel Nicolaus raised their price objective on shares of Teledyne Technologies from $750.00 to $775.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Finally, Citigroup boosted their target price on Teledyne Technologies from $677.00 to $680.00 and gave the company a “neutral” rating in a research report on Wednesday, July 1st. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $721.67.

Get Our Latest Stock Report on Teledyne Technologies Teledyne Technologies Trading Up 0.3% TDY stock opened at $627.39 on Wednesday. Teledyne Technologies Incorporated has a 12 month low of $483.02 and a 12 month high of $697.67. The firm’s 50-day moving average is $647.66 and its 200 day moving average is $641.59. The company has a market capitalization of $29.09 billion, a PE ratio of 30.29, a P/E/G ratio of 2.72 and a beta of 0.92. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.18 and a quick ratio of 1.39.

Teledyne Technologies (NYSE:TDY – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The scientific and technical instruments company reported $6.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.79 by $0.49. The company had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Teledyne Technologies had a net margin of 15.29% and a return on equity of 10.56%. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the company earned $5.20 EPS. Teledyne Technologies has set its FY 2026 guidance at 24.450-24.650 EPS and its Q3 2026 guidance at 6.050-6.150 EPS. On average, research analysts anticipate that Teledyne Technologies Incorporated will post 24.69 EPS for the current year.

Insider Activity In related news, Director Simon M. Lorne sold 6,449 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $680.34, for a total value of $4,387,512.66. Following the transaction, the director owned 55,783 shares of the company’s stock, valued at $37,951,406.22. This represents a 10.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.36% of the company’s stock.

(Free Report)

Teledyne Technologies (NYSE: TDY), headquartered in Thousand Oaks, California, is a diversified industrial technology company that designs, manufactures and supports sophisticated electronic systems, instruments and imaging products. Founded in 1960 by Henry Singleton and George Kozmetsky, Teledyne has grown into a multinational provider of high-performance equipment and software for commercial, scientific and government customers. Its offerings are used in markets that include aerospace and defense, marine, industrial manufacturing, environmental monitoring and scientific research.

The company operates through businesses that develop precision instrumentation, digital imaging products, engineered systems and aerospace and defense electronics.

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Teledyne Technologies Incorporated (NYSE:TDY – Get Free Report) has received a consensus recommendation of “Moderate Buy” from the eight brokerages that are presently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating, three have assigned a buy rating and two have issued a strong buy rating on the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $721.6667.

A number of equities analysts have issued reports on TDY shares. Citigroup upped their target price on Teledyne Technologies from $677.00 to $680.00 and gave the company a “neutral” rating in a research report on Wednesday, July 1st. Needham & Company LLC upped their price target on shares of Teledyne Technologies from $735.00 to $750.00 and gave the company a “buy” rating in a report on Thursday, July 23rd. Barclays increased their price objective on shares of Teledyne Technologies from $614.00 to $640.00 and gave the company an “equal weight” rating in a research note on Friday, July 24th. Morgan Stanley boosted their target price on shares of Teledyne Technologies from $680.00 to $715.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. Finally, Zacks Research upgraded shares of Teledyne Technologies from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 24th.

Read Our Latest Research Report on Teledyne Technologies

Teledyne Technologies Trading Up 1.1% Shares of TDY opened at $633.88 on Thursday. Teledyne Technologies has a 12 month low of $483.02 and a 12 month high of $697.67. The stock’s 50-day moving average is $648.02 and its two-hundred day moving average is $641.63. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.18 and a quick ratio of 1.39. The stock has a market cap of $29.39 billion, a PE ratio of 30.61, a P/E/G ratio of 2.73 and a beta of 0.92. Teledyne Technologies (NYSE:TDY – Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The scientific and technical instruments company reported $6.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.79 by $0.49. The firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.58 billion. Teledyne Technologies had a net margin of 15.29% and a return on equity of 10.56%. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.20 EPS. Teledyne Technologies has set its FY 2026 guidance at 24.450-24.650 EPS and its Q3 2026 guidance at 6.050-6.150 EPS. Equities analysts forecast that Teledyne Technologies will post 24.69 earnings per share for the current fiscal year.

Insider Buying and Selling In other news, Director Simon M. Lorne sold 6,449 shares of Teledyne Technologies stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $680.34, for a total value of $4,387,512.66. Following the completion of the transaction, the director owned 55,783 shares in the company, valued at approximately $37,951,406.22. This trade represents a 10.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.36% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Teledyne Technologies Large investors have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. acquired a new stake in shares of Teledyne Technologies during the first quarter worth $27,000. Allied Private Wealth LLC acquired a new position in shares of Teledyne Technologies in the 2nd quarter valued at about $28,000. Trust Co. of Vermont acquired a new position in shares of Teledyne Technologies in the 2nd quarter valued at about $28,000. Pin Oak Investment Advisors Inc. bought a new stake in shares of Teledyne Technologies during the 2nd quarter valued at about $33,000. Finally, DV Equities LLC acquired a new stake in Teledyne Technologies during the fourth quarter worth about $33,000. 91.58% of the stock is currently owned by institutional investors.

(Get Free Report)

Teledyne Technologies (NYSE: TDY), headquartered in Thousand Oaks, California, is a diversified industrial technology company that designs, manufactures and supports sophisticated electronic systems, instruments and imaging products. Founded in 1960 by Henry Singleton and George Kozmetsky, Teledyne has grown into a multinational provider of high-performance equipment and software for commercial, scientific and government customers. Its offerings are used in markets that include aerospace and defense, marine, industrial manufacturing, environmental monitoring and scientific research.

The company operates through businesses that develop precision instrumentation, digital imaging products, engineered systems and aerospace and defense electronics.

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A month has gone by since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Teledyne's Q2 Earnings & Revenues Beat Estimates, '26 EPS View Raised

Teledyne Technologies Inc. reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDYTotal sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.

TDY’s Segmental PerformanceInstrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.

The adjusted operating income declined 0.1% year over year to $104.8 million.

Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.

The adjusted operating income rose 31.2% year over year to $217.6 million.

Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.

The adjusted operating income increased 8.6% year over year to $79.7 million.

Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.

This segment's operating income rose 24.8% to $15.1 million.

Financial Condition of TDYTeledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.

Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.

Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.

TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.

Teledyne Raises 2026 Earnings ViewFor the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.

For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Teledyne has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerTeledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, AAR (AIR - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026.

AAR reported revenues of $928 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.53 for the same period compares with $1.16 a year ago.

AAR is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.

AAR has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

Teledyne Marine, representing a group of subsea technology providers within Teledyne Technologies Incorporated (NYSE: TDY), participated in Exercise Lanternfish

LAVAL, Quebec--(BUSINESS WIRE)--Teledyne FLIR Defense, part of Teledyne Technologies Incorporated (NYSE:TDY), announced that it has built and shipped its 3,000th Ranger® surveillance radar system from its engineering, service, and production site in Laval, Quebec. Widely deployed for border security, defense operations, and counter-unmanned aircraft systems (C-UAS) applications around the world, the Ranger series of advanced radar systems has been shipped to more than 40 countries to strengthen.

Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of [url="]Kahn Swick and Foti[/url], LLC (“KSF”) are investigating the propos

THOUSAND OAKS, Calif. & SALT LAKE CITY--(BUSINESS WIRE)--Teledyne Technologies Incorporated (NYSE:TDY) (“Teledyne”) and Varex Imaging Corporation (NASDAQ:VREX) (“Varex”) jointly announced today that they have entered into a definitive agreement under which Teledyne will acquire all of the outstanding common shares of Varex for $18.90 per share payable in cash. The aggregate value for the transaction is approximately $1.1 billion, taking into account Varex's equity awards and net debt as of Apri.