10-Q · July 24, 2026
Teledyne posted strong Q2 execution, with revenue up 9.8% year over year to $1.6625 billion, GAAP EPS up 21.2% to $5.37, and operating margin expanding 140 basis points to 20.0%. Digital Imaging drove the performance,…
Earnings analysis · 10-Q
TDY earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Teledyne delivered a strong third quarter, with revenue of $1,684.9 million, adjusted EPS of $6.72, operating margin of 20.6%, and free cash flow of $319.5 million. Revenue, margin, adjusted EPS, and free cash flow…
Read full summary
Teledyne delivered a strong third quarter, with revenue of $1,684.9 million, adjusted EPS of $6.72, operating margin of 20.6%, and free cash flow of $319.5 million. Revenue, margin, adjusted EPS, and free cash flow improved versus both the prior quarter and the prior-year period, while Digital Imaging led segment growth. Management raised full-year 2026 EPS guidance, although the filing identifies continuing exposure to trade conditions, geopolitical conflicts, government shutdowns, and foreign-currency movements.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.82
- Operating margin
- 20.6%
- Segment
- Digital Imaging led third-quarter growth; exact segment revenue was not provided in the extracted filing text.
What stood out
-
Revenue exceeded consensus
Third-quarter revenue was $1,684.9 million, up approximately 1.5% from $1.66 billion in Q2 2026 and 9.4% from $1.54 billion in Q3 2025. Revenue exceeded the $1,653.96 million consensus estimate by approximately 1.9%.
-
Adjusted EPS beat estimates
GAAP diluted EPS was $5.82, while adjusted EPS was $6.72 versus the $6.16 consensus estimate. Adjusted EPS exceeded consensus by approximately 9.1%.
-
Operating margin expanded
Operating margin expanded to 20.6% from 20.0% in Q2 2026 and 18.5% in Q3 2025, representing increases of 60 basis points sequentially and 210 basis points year over year.
-
Cash flow and Digital Imaging improved
Free cash flow reached $319.5 million, up from $285 million in Q2 2026 and $314 million in Q3 2025. Digital Imaging was identified as the leading growth segment, although segment-level revenue amounts were not included in the extracted text.
-
Share repurchases resumed
The company repurchased 157,106 shares at an average price of $603.09 during the quarter, leaving $1,505.3 million available under the repurchase authorization.
-
Full-year EPS outlook raised
Management raised full-year 2026 GAAP EPS guidance to $21.71-$21.87 from $20.73-$20.99 and non-GAAP EPS guidance to $25.40-$25.50 from $24.45-$24.65.
What to watch
-
Macro and geopolitical exposure persists
The filing states there were no material changes to the risk factors disclosed in the 2025 Form 10-K, but it specifically directs readers to ongoing risks involving the global trade environment, conflicts in the Middle East, U.S. government shutdowns, and foreign-currency exchange rates.
-
Capital allocation flexibility
The company retained $1,505.3 million of unused repurchase authorization after buying 157,106 shares at an average price of $603.09; continued buybacks could reduce financial flexibility for acquisitions or other capital needs.
-
No newly quantified risk disclosures
Disclosure controls were concluded effective as of September 27, 2026, but the filing states that risk-factor disclosures remain subject to the 2025 Form 10-K and related MD&A discussion rather than identifying newly quantified exposures.
Management's outlook
Full-year 2026 GAAP EPS outlook was raised from $20.73-$20.99 to $21.71-$21.87. Non-GAAP EPS outlook was raised from $24.45-$24.65 to $25.40-$25.50.
Earlier filings 2
10-Q · April 24, 2026
Teledyne reported Q1 2026 net sales of $1,560.1 million (up 7.6% YoY) and GAAP diluted net income per share of $4.85, with operating income of $294.2 million. Cash on hand rose to $521.4 million and operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.