TransDigm FY26 Q3: sales up 23%, adjusted EPS beats, guidance raised
Conclusion first: this was a beat-and-raise quarter. Sales rose 23.0% to $2.74 billion, adjusted EPS of $10.87 came in above the $10.40 consensus, and management lifted full-year sales, EBITDA and EPS guidance. Two caveats matter: only 13.0% of the growth was organic, and the balance sheet carries $32.76 billion of debt against negative equity.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $9.39 rose 10.9% from $8.47, and adjusted EPS of $10.87 beat the $10.40 consensus and rose from $9.60. Roughly $1.48 of the gap between the two EPS lines comes from items management excludes, mainly non-cash stock compensation and acquisition costs. Note that net income attributable to TD Group grew only 9.6%, to $539 million, because interest expense rose faster than sales.
Sales of $2.74 billion rose 23.0% from $2.24 billion a year earlier, but only 13.0% of that was organic — the rest came from acquisitions. This is the third straight sequential gain this fiscal year: $2.29 billion, then $2.54 billion, then $2.74 billion. Gross margin was 59.4%, essentially flat against the prior-year quarter's 59.5%.
The full-year sales midpoint moved up to $10.51 billion, a $150 million raise, and adjusted EPS guidance is now $40.62 to $41.46. The ranges are tight around the midpoint — sales of $10.47 billion to $10.55 billion — which is both a commitment and a narrow margin for error. The guidance deliberately excludes any contribution from the $1.07 billion Prince & Izant acquisition announced after quarter-end.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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