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Teledyne reported Q2 EPS of $6.28 and revenues of $1.66 billion, beating estimates.
TDY posted year-over-year sales growth across all four business segments in the quarter.
Teledyne raised its 2026 adjusted EPS outlook above its previous guidance range.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Instrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.
The adjusted operating income declined 0.1% year over year to $104.8 million.
Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.
The adjusted operating income rose 31.2% year over year to $217.6 million.
Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.
The adjusted operating income increased 8.6% year over year to $79.7 million.
Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.
This segment's operating income rose 24.8% to $15.1 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.
Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.
Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.
TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.
Teledyne Raises 2026 Earnings View
For the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.
For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.
Lockheed Martin Corporation (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.
View the Zacks #1 Rank List
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Teledyne's Q2 Earnings & Revenues Beat Estimates, '26 EPS View Raised
Key Takeaways
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote
TDY’s Segmental Performance
Instrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.
The adjusted operating income declined 0.1% year over year to $104.8 million.
Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.
The adjusted operating income rose 31.2% year over year to $217.6 million.
Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.
The adjusted operating income increased 8.6% year over year to $79.7 million.
Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.
This segment's operating income rose 24.8% to $15.1 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.
Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.
Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.
TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.
Teledyne Raises 2026 Earnings View
For the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.
For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.
TDY’s Zacks Rank
Teledyne currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Releases
Lockheed Martin Corporation (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.