The third consecutive guidance raise confirms strong momentum in commercial aftermarket and OEM build rates. With $2.8B cash and $1.8B YTD buybacks, management is aggressively returning capital while executing bolt-on M&A. Watch for potential headwinds from rising interest expense (net interest $514M in Q3) and integration of recent acquisitions, but the underlying demand cycle remains robust.
Price Chart
Executive Summary
TransDigm Group reported fiscal Q3 2026 results with net sales of $2,741M (+23% YoY) and adjusted EPS of $10.87 (+13% YoY), beating consensus estimates of $2.67B and $10.33 respectively. The company raised full-year guidance for the third consecutive quarter, increasing net sales midpoint by $150M and adjusted EPS midpoint by $1.52, driven by broad-based double-digit growth across commercial aftermarket (+17%), commercial OEM, and defense channels.
Key Financial Metrics
Key Facts
- Q3 net sales $2,741M, +23% YoY (organic +13%)
- Adjusted EPS $10.87 vs consensus $10.33 (+5.2% beat)
- GAAP EPS $9.39, +11% YoY
- EBITDA As Defined $1,447M, +19% YoY, margin 52.8%
- FY2026 guidance raised: net sales $10,470M-$10,550M (midpoint +$150M), adjusted EPS $40.62-$41.46 (midpoint +$1.52)
- Commercial aftermarket grew 17% in the quarter
- YTD share repurchases $1.8B; Q3 repurchases $1.0B at avg $1,208/share
- Acquisition of Prince Izant for ~$1.07B announced post-quarter
- Long-term debt $32.6B, stockholders' deficit $9.8B
Financial Impact
Revenue beat consensus by ~$71M (2.7%); adjusted EPS beat by $0.54 (5.2%); guidance raised by $150M at midpoint for revenue and $1.52 for adjusted EPS
Risk Factors
- High leverage: long-term debt $32.6B vs equity deficit $9.8B
- Interest expense rising: $514M in Q3 vs $397M prior year (+29%)
- Integration risk from $2.2B Jet Parts/Victor Sierra and $1.07B Prince Izant acquisitions
- Aerospace cycle sensitivity: commercial aftermarket could soften if flight hours decline
- Share count declining rapidly (57.4M shares vs 58.1M prior year) may boost EPS but reflects aggressive buybacks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001260221-26-000052 |
| Document: tdg-20260804.htm | 0001260221-26-000052 |
| Document: 0001260221-26-000052-index-headers.html | 0001260221-26-000052 |
| Document: 0001260221-26-000052-index.html | 0001260221-26-000052 |
| Document: 0001260221-26-000052.txt | 0001260221-26-000052 |
| 8-K Data (Synthetic) | 0001260221-26-000052 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 8-K | $1,111.22 $1,109.65 | ▼ −0.14% | ▼ −0.25% | $1,090.38 (−1.88%) |
Sep 14, 2026 18d ago | 8-K | $1,111.22 $1,109.65 | ▼ −0.14% | ▼ −0.25% | $1,090.38 (−1.88%) |
Aug 19, 2026 6w ago | Insider Cluster | $1,222.91 $1,207.06 | ▼ −1.30% | ▼ −0.91% | $1,090.38 (−10.84%) |
Aug 4, 2026 8w ago | 8-K | $1,275.05 $1,242.04 | ▼ −2.59% | ▼ −2.49% | $1,090.38 (−14.48%) |
Aug 4, 2026 8w ago | Press Release | $1,275.05 $1,242.04 | ▼ −2.59% | ▼ −2.49% | $1,090.38 (−14.48%) |
Jul 27, 2026 9w ago | 8-K | $1,286.27 $1,254.38 | ▼ −2.48% | ▼ −3.55% | $1,090.38 (−15.23%) |
Jul 27, 2026 9w ago | Press Release | $1,286.27 $1,254.38 | ▼ −2.48% | ▼ −3.55% | $1,090.38 (−15.23%) |
Jul 24, 2026 10w ago | Press Release | $1,286.27 $1,254.38 | ▼ −2.48% | ▼ −3.55% | $1,090.38 (−15.23%) |
Jul 24, 2026 10w ago | 8-K | $1,236.71 $1,249.91 | ▲ +1.07% | ▲ +0.69% | $1,090.38 (−11.83%) |
Jul 21, 2026 10w ago | Insider Cluster | $1,205.49 $1,286.27 | ▲ +6.70% | ▲ +7.93% | $1,090.38 (−9.55%) |
US Market Status
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