TDY US S&P 500Russell 1000 Earnings call · transcribed from the recording
Teledyne Technologies (TDY) · Q3 2026 results and valuation
Share price: $651.12 · 2026-11-11
Teledyne Technologies provides enabling technologies including digital imaging sensors, monitoring and control instrumentation, and engineered systems for industrial growth markets. Its products serve customers in the aerospace, defense, environmental monitoring, medical imaging, and oil and gas industries. The company operates globally, providing solutions for marine, industrial, and scientific applications. Source: 10-K annual report (2026-02-20)
Results Q3 2026 vs Q2 2026 · previous quarter · published 21 Oct 2026 and 22 Jul 2026
Net income up 8.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+8.4%
Net income vs Q2 2026
Outlook given
Net income 272.8M vs 251.7M
Revenue +1.3%
Why Against the same quarter last year (+23.6%), net income rose primarily due to favorable operating results and growth in the digital imaging, marine instruments, environmental instruments, and engineered systems segments, driven by strong defense-related sales and increased gas monitoring instrumentation.
2 · How management spoke
Typical
More upbeat than 51% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Teledyne Technologies' 2026 sales outlook is $6.625 billion, representing an 8.3 percent year-over-year increase and nearly double the growth rate projected in January.
Valuation
Is Teledyne Technologies undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.9% growth a year (3-year revenue growth), the model's fair value is $313.13 a share — the stock trades 108% above it. Today's price assumes 13.1% growth a year.
Current price
$651.12
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.1% for 10 yrs
Fair value / share
$313.13
Buy below
$234.85
Price vs fair value
Overvalued 108%
Price vs buy-below price
Overvalued 177%
Read between the lines
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Guidance
The 2026 sales outlook is now $6.625 billion, a year-over-year increase of 8.3 percent, which is nearly double the growth rate projected in January.
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Guidance
TDY projects full-year 2026 GAAP earnings per share between $21.71 and $21.87 and non-GAAP earnings per share between $25.40 and $25.50.
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Figure
Teledyne's funded backlog reached approximately $5.3 billion as orders have exceeded sales for 12 consecutive quarters.
Source quote
“For all of Teledyne, orders have exceeded sales for 12 consecutive quarters and funded backlog is now approximately $5.3 billion.”
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Figure
Sales of electronic tests and measurement systems decreased 6.3%, but orders increased 18% year-over-year to achieve a record book-to-bill ratio of 1.23.
Source quote
“Sales of electronic tests and measurement systems decreased 6.3% due in part to the timing of orders, which increased 18% year-over-year for a record book-to-bill ratio of 1.23.”
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Figure
Quarter bookings in the defense and aerospace markets reached a segment book-to-bill ratio of 1.29.
Source quote
“However, third quarter bookings were very strong in both the defense and aerospace markets, with a segment book-to-bill ratio of 1.29.”
3 more
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Figure
Digital imaging revenue reached approximately $3.5 billion in the third quarter, highlighting a key revenue driver for the company.
Source quote
“We're talking about the revenue for digital imaging around $3.5 billion.”
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Figure
The total defense system is expected to see about 10% growth, while multiple subsystems are expected to experience growth of more than 10%.
Source quote
“On the bigger system, which would be our total defense system, we're looking at about a 10% growth, whereas in the subsystems, we're looking at multiple of them.”
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Figure
Organic growth reached 10% and combined with 0.6% from acquisitions, the total of 10.6% moved the company closer to its 11% target.
Source quote
“It's organic is 10%. With 0.6% of acquisition, it's 10.6% closer to 11%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Given our backlog, the pending acquisition of Varex, our strong balance sheet, and outstanding operating discipline, I'm already looking forward to 2027.”
“In the digital imaging segment, third quarter sales increased 15% and 14.3% organically due to well-balanced growth among our defense and commercial businesses.”
“In the third quarter, organic growth accelerated in our digital imaging segment and was led by sales of infrared detectors and subsystems for space and unmanned applications.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-27)
| Metric | Q3 2026period end 2026-09-27 | Q2 2026period end 2026-06-28 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.68B | 1.66B | +1.3% | 1.54B | +9.4% |
| Gross profit | 739.4M | 738.1M | +0.2% | 659.5M | +12.1% |
| Operating income | 347.2M | 333.2M | +4.2% | 282.8M | +22.8% |
| Net income | 272.8M | 251.7M | +8.4% | 220.7M | +23.6% |
| EPS | 5.82 | 5.37 | +8.4% | 4.65 | +25.2% |
| P/E today 28.3 | 28.1 | 30.2 | −2.1 | 33.4 | −5.3 |
Topics
Most discussed now
- Digital imaging and you look at it both as what Teledyne Technologies calls its historical digital imaging
- Furthermore, each of Teledyne Technologies' major commercial imaging businesses, such as industrial vision sensors and systems, as well as…
- Sales of infrared detectors for space-based imaging increased more than 25%, as did revenue from infrared subsystems and cameras for...
- Given Teledyne Technologies' backlog, the pending acquisition of Varex, its strong balance sheet, and outstanding operating discipline, I'm…
- To conclude, right now, virtually all of Teledyne Technologies' businesses are moving in a positive direction simultaneously, and its…
Faded since Q2 2026
- Dropped Its health care business, where Teledyne Technologies does both X-ray sensors and radiotherapy equipment, also high single-digit growth…
- Dropped Power applications, including people designing power supplies for data centers, also started to see, Teledyne Technologies has been talking…
- Dropped Teledyne Technologies has a $1.2 billion of untouched credit facility, plus if it was to go up to what its debt-to-capital...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Teledyne Technologies reported third-quarter net sales of $1,684.9 million, an increase of 9.4% compared to the previous year, and GAAP diluted earnings per share of $5.82, up 25.2% year-over-year.
- Director or officer change · SEC 8-K
Teledyne announced the retirement of Vice Chairman Jason VanWees on February 1, 2027, and the appointment of Mary Grace DeForest as Corporate Vice President of Investor Relations and M&A on November 1, 2026.
- Regulation FD disclosure · SEC 8-K
Teledyne Technologies entered into a definitive agreement to acquire Varex Imaging Corporation for $18.90 per share in an all-cash transaction valued at approximately $1.1 billion.
- Results of operations · SEC 8-K
Teledyne Technologies reported second-quarter net sales of $1,662.5 million, an increase of 9.8% compared to the second quarter of 2025, with non-GAAP diluted earnings per share of $6.28, up 20.8% year over year.
- Director or officer change; Articles or bylaws amended; Shareholder vote results; Other events · SEC 8-K
Stockholders approved an amendment to the Certificate of Incorporation allowing holders of at least 25% of the voting power to call a special meeting of stockholders.
- Results of operations · SEC 8-K
Teledyne Technologies reported first-quarter net sales of $1,560.1 million, an increase of 7.6% compared to the first quarter of 2025, with non-GAAP diluted earnings per share of $5.80, up 17.2% year over year.
- Material agreement · SEC 8-K
Teledyne Technologies entered into a First Amendment to its Credit Agreement on February 25, 2026, eliminating the 0.10% Secured Overnight Financing Rate (SOFR) adjustment feature.
- Director or officer change · SEC 8-K
Kenneth C. Dahlberg will retire as a director at the 2026 Annual Meeting, and the Board will reduce the number of Class III directors from three to two.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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October 28
special stockholder meeting
Source quote
“The regulatory process is underway, and there is a special stockholder meeting scheduled for October 28.”
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early in 2027
closing of the pending acquisition of Varex
Source quote
“We continue to anticipate closing early in 2027.”
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fourth quarter of 2026
GAAP earnings per share range
Source quote
“So management currently believes that GAAP earnings per share in the fourth quarter of 2026 will be in the range of $5.68 to $5.83, with non-GAAP earnings per share in the range of $6.60 to $6.70.”
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the last next 12 months
availability of 72 percent of the $5.3 billion backlog as revenue
Source quote
“of that about 72 percent will be available for us to as a revenue in the last next 12 months.”
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Q2
projected growth of 150 basis points in digital imaging margins
Source quote
“We started the year by saying digital imaging margins would grow about 150 basis points in Q2.”