Transdigm Group (NYSE:TDG) Announces Earnings Results

Transdigm Group (NYSE:TDG) announced its quarterly earnings results on Tuesday. The aerospace company reported $8.23 EPS for the quarter, beating analysts’ consensus estimates of $7.99 by $0.24, FiscalAI reports. The firm had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.26 billion. Transdigm Group had a negative return on equity of 29.06% and a net margin of 20.50%.The business’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same period last year, the firm posted $7.83 earnings per share. Transdigm Group updated its FY 2026 guidance to 37.420-39.340 EPS.

Here are the key takeaways from Transdigm Group’s conference call:

• Raised FY2026 outlook: Management increased full-year guidance with midpoint revenue now at $9.94 billion (≈+13% YoY) and midpoint EBITDA as-defined at $5.21 billion (≈+9%), and adjusted EPS midpoint of $38.38, excluding pending acquisitions.
• Strong cash generation and liquidity: Q1 operating cash flow topped $830 million, free cash flow was just under $900 million, ending cash of >$2.5 billion, and unchanged FY26 FCF guidance of ≈$2.4 billion; management also repurchased >$100 million of stock.
• Active, disciplined M&A that fits the model — announced purchases of Stellent (~$960M) and Jet Parts Engineering + Victor Sierra (~$2.2B); pro forma M&A capacity remains substantial (management cites ~$10 billion).
• High-margin performance — Q1 EBITDA as-defined margin was 52.4% (including ~200 bps dilution from recent deals), and management says margins in base businesses improved more than expected, though they remain conservatively guided for the year.
• Demand and bookings are strong but uneven: Q1 bookings outpaced sales across commercial OEM (pro forma +17%), commercial aftermarket (+7%), and defense (+7%), yet management flags OEM recovery as “bumpy” and aftermarket growth lags peers by ~5–6 points due to lower engine exposure and distributor/airline lumpiness.

Transdigm Group Stock Performance

Shares of Transdigm Group stock traded down $16.41 during mid-day trading on Thursday, hitting $1,248.39. 57,864 shares of the stock were exchanged, compared to its average volume of 395,454. Transdigm Group has a 12 month low of $1,183.60 and a 12 month high of $1,623.82. The company has a 50-day simple moving average of $1,357.77 and a 200 day simple moving average of $1,358.81. The company has a market capitalization of $70.47 billion, a P/E ratio of 40.17, a P/E/G ratio of 2.85 and a beta of 0.92.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on TDG shares. Morgan Stanley raised their price objective on Transdigm Group from $1,600.00 to $1,660.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. Stifel Nicolaus lowered their price target on shares of Transdigm Group from $1,710.00 to $1,650.00 and set a “buy” rating for the company in a report on Thursday, November 13th. UBS Group reduced their price objective on shares of Transdigm Group from $1,804.00 to $1,800.00 and set a “buy” rating on the stock in a research note on Wednesday. KeyCorp reiterated a “sector weight” rating on shares of Transdigm Group in a research report on Thursday. Finally, BNP Paribas Exane assumed coverage on shares of Transdigm Group in a report on Tuesday, November 18th. They issued an “outperform” rating and a $1,775.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Transdigm Group has an average rating of “Moderate Buy” and an average target price of $1,584.44.

Transdigm Group News Roundup

Here are the key news stories impacting Transdigm Group this week:

• Positive Sentiment: Q1 beat: TransDigm reported stronger-than-expected Q1 results with revenue up ~14% and adjusted EPS above consensus; management raised fiscal‑2026 sales and adjusted EPS guidance. This supports the company’s durable aftermarket pricing power and margin profile. Read More.
• Positive Sentiment: M&A / cash‑flow story: Coverage highlights ~$3.2B of deals that deepen TransDigm’s aftermarket footprint — potentially adding recurring aftermarket cash flow and cross‑sell opportunities. Read More.
• Positive Sentiment: Analyst backing remains: UBS kept a Buy rating and a high price target (trimmed slightly to $1,800), implying significant upside from current levels — a vote of confidence from a major sell‑side shop. Read More.
• Neutral Sentiment: Guidance is a range: management set FY26 EPS and revenue ranges (EPS 37.42–39.34; revenue $9.8B–$10.0B). The midpoint is roughly in line with consensus, but the range introduces interpretation risk that can create mixed market reactions. Read More.
• Neutral Sentiment: Drilldown / metrics: Detailed analyst commentary and metric comparisons are available (useful for modeling margins, free cash flow and interest impacts). Read More.
• Negative Sentiment: Analyst downgrade citing risks: Robert W. Baird downgraded / reaffirmed neutral and Baird flagged margin pressure and leverage risk; that commentary likely amplified selling pressure. Read More.
• Negative Sentiment: Guidance / cost headwinds flagged: Coverage notes higher interest expense and tariff-related issues that could weigh on FY26 profit vs. some sell‑side expectations. That nuance appears to have dented investor confidence despite the beat. Read More.
• Negative Sentiment: Large insider sales: Director Kevin M. Stein sold tens of thousands of shares (~$68M+ across filings) and the COO sold shares recently — these big disclosures often create negative sentiment and can amplify short‑term weakness. Read More. Read More.

Insiders Place Their Bets

In other Transdigm Group news, Director Kevin M. Stein sold 36,925 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $1,425.79, for a total value of $52,647,295.75. Following the transaction, the director directly owned 19,233 shares in the company, valued at $27,422,219.07. The trade was a 65.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Robert J. Small sold 90,953 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $1,335.72, for a total value of $121,487,741.16. Following the completion of the transaction, the director owned 68,139 shares in the company, valued at approximately $91,014,625.08. The trade was a 57.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 242,485 shares of company stock valued at $331,932,850 in the last 90 days. Corporate insiders own 4.09% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. L2 Asset Management LLC raised its position in shares of Transdigm Group by 5.2% in the 3rd quarter. L2 Asset Management LLC now owns 261 shares of the aerospace company’s stock worth $344,000 after acquiring an additional 13 shares in the last quarter. Texas Capital Bank Wealth Management Services Inc purchased a new stake in Transdigm Group in the third quarter worth $249,000. Family Management Corp raised its holdings in Transdigm Group by 13.9% in the third quarter. Family Management Corp now owns 213 shares of the aerospace company’s stock worth $281,000 after purchasing an additional 26 shares in the last quarter. MUFG Securities EMEA plc purchased a new position in Transdigm Group during the second quarter valued at $252,000. Finally, IHT Wealth Management LLC boosted its holdings in shares of Transdigm Group by 20.1% during the 2nd quarter. IHT Wealth Management LLC now owns 185 shares of the aerospace company’s stock valued at $281,000 after buying an additional 31 shares in the last quarter. Institutional investors own 95.78% of the company’s stock.

Transdigm Group Company Profile

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company’s product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset’s life cycle.

TransDigm’s operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.