Teledyne's Q3 results beat on digital imaging segment strength; raises FY profit forecast

By Reuters News


Overview

  • U.S. industrial technology firm's Q3 sales rose 9.4% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beat consensus, rising 20.6% yr/yr

  • Company announced pending $1.1 bln acquisition of Varex Imaging


Outlook

  • Teledyne sees Q4 2026 GAAP EPS between $5.68 and $5.83

  • Company expects Q4 2026 non-GAAP EPS of $6.60 to $6.70

  • Teledyne raises full-year 2026 GAAP EPS outlook to $21.71-$21.87 from $20.73-$20.99

  • Company lifts full-year 2026 non-GAAP EPS forecast to $25.40-$25.50 from $24.45-$24.65


Result Drivers

  • DIGITAL IMAGING DEMAND - Co said growth was led by higher sales of infrared detectors and subsystems for space, unmanned, and commercial imaging applications

  • DEFENSE AND COMMERCIAL APPLICATIONS - Higher sales of infrared imaging detectors, maritime products, and surveillance systems contributed to revenue growth

  • FAVORABLE PRODUCT MIX - Co attributed higher operating income partly to a more favorable product mix


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.68 bln

$1.65 bln (9 Analysts)

Q3 Adjusted EPS

Beat

$6.72

$6.17 (10 Analysts)

Q3 EPS

$5.82

Q3 Revenue Growth

9.40%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy"

  • Wall Street's median 12-month price target for Teledyne Technologies Incorporated is $760.00, about 20.2% above its October 20 closing price of $632.21

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago


Reuters Recommended Reads

  • Oct 20 - Aerospace and military contractors raise 2026 profit forecasts

  • Oct 20 - RTX lifts 2026 forecasts as aerospace, defense demand drives record backlog


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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