TransDigm Q3 profit beats on market channel growth

TransDigm Incorporated

04/08/2026 12:42

Overview
US aircraft components maker's fiscal Q3 revenue rose 23%, beating analyst expectations
Adjusted EPS for fiscal Q3 beat consensus, rising 13% yr/yr
Company raised full-year 2026 guidance for sales, adjusted EPS, and EBITDA As Defined

Outlook
TransDigm raises fiscal 2026 net sales guidance to $10.47 bln-$10.55 bln, up $150 mln midpoint
Company lifts fiscal 2026 adj EPS forecast to $40.62-$41.46, up $1.52 at midpoint
Fiscal 2026 outlook assumes mid-teens pct growth in commercial OEM, low double-digit aftermarket growth

Result Drivers
MARKET CHANNEL GROWTH - Co said all three major channels—commercial aftermarket, commercial OEM, and defense—delivered double-digit growth in Q3
VALUE-DRIVEN STRATEGY - Co said increase in net income primarily reflected higher net sales and application of its value-driven operating strategy
ACQUISITION IMPACT - Co said reported EBITDA margin declined due to acquisition dilution, but base businesses expanded margins year-over-year

Company press release: ID:nPn28F7jfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.74 bln
$2.68 bln (17 Analysts)
Q3 Adjusted EPS
Beat
$10.87
$10.30 (19 Analysts)
Q3 EPS
 
$9.39
 
Q3 Adjusted Net Income
Beat
$624 mln
$594.75 mln (14 Analysts)
Q3 EBITDA
 
$1.35 bln
 
Q3 Organic Growth
 
13.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for TransDigm Group Inc is $1,455.00, about 13.2% above its August 3 closing price of $1,285.56
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 27 three months ago

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(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.)