Transcat Q3 revenue beats expectations

Transcat

03/02/2026 21:10

Overview

Test measurement firm's fiscal Q3 revenue grew 26%, beating analyst expectations

Adjusted EPS for fiscal Q3 missed analyst expectations

Company's service revenue rose 29%, driven by acquisitions and demand in regulated markets

Outlook

Transcat expects high single-digit service organic revenue growth in Q4 fiscal 2026

Company optimistic about service segment momentum and new business wins

Transcat believes acquisitions position it well for long-term shareholder value

Result Drivers

SERVICE REVENUE GROWTH - Service revenue rose 29%, driven by acquisitions and demand in regulated markets

DISTRIBUTION REVENUE GROWTH - Distribution revenue increased 20%

GROSS MARGIN EXPANSION - Overall gross margin increased by 60bps, despite service margin pressure from start-up costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$83.90 mln
$82.08 mln (4 Analysts)
Q3 Adjusted EPS
Miss
$0.26
$0.33 (3 Analysts)
Q3 Adjusted EBITDA
Miss
$10.10 mln
$10.97 mln (4 Analysts)
Q3 Gross Profit
$25.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Transcat Inc is $105.00, about 66.5% above its February 2 closing price of $63.06

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBwcgC1n1a

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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.)