TDG earnings analysis
What we found in TDG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
TransDigm delivered fiscal Q3 revenue of $2.741 billion, up 7.9% sequentially and 22.4% year over year, while GAAP diluted EPS of $9.39 rose from $9.20 in the prior quarter and $8.47 a year earlier. Management cited 13% organic growth and 17% commercial-aftermarket growth, though EBITDA As Defined margin declined 160 basis points to 52.8%. The provided filing extract does not contain the detailed balance sheet, cash-flow, gross-margin, operating-margin, or segment-revenue tables needed to quantify those trends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated sequentially and YoY
- Revenue was $2.741 billion, up $201 million, or 7.9%, sequentially from $2.540 billion in fiscal Q2 2026 and up $501 million, or 22.4%, from $2.240 billion in fiscal Q3 2025.
- EPS increased versus both comparison periods
- GAAP diluted EPS was $9.39, compared with $9.20 in fiscal Q2 2026 and $8.47 in fiscal Q3 2025; contemporaneous adjusted EPS was $10.87.
- Organic and aftermarket demand remained strong
- Management cited 13% organic sales growth, including 17% growth in commercial aftermarket sales, indicating continued strength in the highest-value aftermarket channel.
- Large share repurchase deployment
- The company repurchased 809,101 shares during the quarter at an average $1,208.20 per share. Its authorization had $3.981 billion remaining at June 27, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- EBITDA margin contracted
- EBITDA As Defined margin was 52.8%, down 160 basis points from the prior-year period, signaling cost, mix, or acquisition-related pressure despite 13% organic growth.
- Acquisition integration and control risk
- During the 39-week period ended June 27, 2026, the company completed the Simmonds, JPE and VSA acquisitions and is still integrating them into operations, compliance programs and internal controls; management excluded these 3 acquisitions from its internal-control assessment.
- No material risk-factor update
- Item 1A states there were no material risk-factor changes from the fiscal-2025 Form 10-K. Separately, legal matters are reportable when monetary sanctions exceed, or are reasonably expected to exceed, $1 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $9.39
What they said about what is next.
No quantitative forward outlook was included in the provided 10-Q extract. The contemporaneous earnings release raised fiscal-2026 sales outlook to $10.470 billion-$10.550 billion and adjusted EPS outlook to $40.62-$41.46, but those figures are not treated as 10-Q guidance here.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- TransDigm Group reported strong Q2 2026 results with a revenue of $2.544 billion, exceeding estimates and reflecting an 18% year-over-year growth. The reported EPS of $9.85 also surpassed expectations, indicating solid…
- 10-Q · February 3, 2026
- TransDigm reported Q1 FY2026 net sales of $2,285 million, up 13.9% year-over-year, and net income attributable to TD Group of $445 million; diluted EPS was $6.62 versus $7.62 in the prior year quarter. Gross margin…
- 10-K · November 12, 2025
- TransDigm (TDG) reported FY2025 net sales of $8,831 million (up 11.2% YoY) with gross profit of $5,311 million (60.1%) and net income attributable to TD Group of $2,074 million (EPS $32.08). The business emphasizes a…
- 10-Q · August 5, 2025
- TransDigm reported Q3 net sales of $2,237 million, up 9.3% from $2,046 million a year ago, with net income attributable to TD Group of $492 million and diluted EPS of $8.47 (vs. $7.96). Gross margin was stable at 59.5%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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