The third consecutive guidance raise and broad-based double-digit growth across all channels confirm a strong aerospace aftermarket cycle. Monitor the pending Prince & Izant close and integration, as well as any tariff or supply chain commentary on the earnings call. The aggressive $1.8B YTD buyback and $1.5B debt offering signal management's confidence in cash flow and leverage capacity.
Price Chart
Executive Summary
TransDigm Group reported fiscal Q3 2026 adjusted EPS of $10.87 (5.2% beat vs $10.33 consensus) on net sales of $2,741M (+23% YoY, beating $2.67B consensus). 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. The strong beat and raised guidance signal accelerating momentum in the aerospace aftermarket cycle, supported by $1.0B in share repurchases during the quarter and a pending $1.07B acquisition of Prince & Izant.
Key Financial Metrics
Key Facts
- Q3 2026 net sales $2,741M (+23% YoY), beating $2.67B consensus
- Adjusted EPS $10.87 (+13% YoY), beating $10.33 consensus by 5.2%
- GAAP EPS $9.39 (+11% YoY)
- EBITDA As Defined $1,447M (+19% YoY), margin 52.8%
- Raised FY2026 guidance: net sales midpoint +$150M to $10,470-10,550M, adjusted EPS midpoint +$1.52 to $40.62-41.46
- Commercial aftermarket revenue grew 17% YoY; all three channels delivered double-digit growth
- Repurchased 809,101 shares for $1.0B in Q3; YTD repurchases $1.8B
- Completed $2.2B acquisition of Jet Parts Engineering and Victor Sierra in April 2026
- Announced $1.07B acquisition of Prince & Izant (pending close)
- Incremental debt offering of $1.5B completed in April 2026
Financial Impact
Q3 net sales $2,741M (+23% YoY), adjusted EPS $10.87 (+13% YoY); FY2026 guidance raised by $150M in sales and $1.52 in adjusted EPS at midpoint
Risk Factors
- Integration risk from $3.3B in recent acquisitions (Jet Parts Engineering, Victor Sierra, Prince & Izant)
- Higher interest expense ($514M in Q3, +29% YoY) from incremental $1.5B debt offering
- EBITDA As Defined margin compressed 160bps YoY to 52.8% due to acquisition dilution
- Potential tariff impacts on aerospace supply chain and raw material costs
- Geopolitical risks to commercial flight hours and defense spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302842301 |
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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