Transdigm Group (NYSE:TDG) Posts Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Key Points

• Quarterly results beat estimates: Adjusted EPS was $12.44 versus $12.21 expected, while revenue rose 22.6% year over year to $2.99 billion and also topped forecasts.
• Fiscal 2027 revenue outlook is strong: TransDigm forecast revenue of $12.0 billion–$12.2 billion, above analyst expectations, with growth anticipated across its major markets.
• EPS guidance is mixed: The company projected fiscal 2027 adjusted EPS of $47.09–$47.94, whose midpoint is slightly below the $47.91 analyst consensus.

Transdigm Group (NYSE:TDG - Get Free Report) issued its earnings results on Tuesday. The aerospace company reported $12.44 earnings per share for the quarter, topping the consensus estimate of $12.21 by $0.23, FiscalAI reports. Transdigm Group had a negative return on equity of 23.65% and a net margin of 19.69%. The business had revenue of $2.99 billion for the quarter, compared to analyst estimates of $2.95 billion. During the same period last year, the company posted $10.82 EPS. The business's quarterly revenue was up 22.6% on a year-over-year basis. Transdigm Group updated its FY 2027 guidance to 47.090-47.940 EPS.

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

• TransDigm reported broad-based strength in fiscal 2026: all three major end markets grew at double-digit rates in Q4 and for the full year, and revenue and EBITDA exceeded the company’s latest guidance. Q4 EBITDA margin reached 53%, its highest of the year.
• Fiscal 2027 guidance calls for revenue of about $12.05 billion, up approximately 14%, and EBITDA of about $6.27 billion, up approximately 13%. The company expects high-single-digit or better growth across commercial OEM, commercial aftermarket, and defense.
• Commercial OEM momentum is supported by higher Boeing and Airbus production, while defense enters the new year with a healthy backlog and bookings well above the prior year. Management also expects underlying margin improvement of 1%–1.5%, though recent acquisitions are expected to dilute fiscal 2027 reported margins by about two percentage points.
• Commercial aftermarket demand remained healthy despite elevated oil prices and weaker-than-forecast RPKs, with bookings exceeding sales for the year. However, fiscal 2027 aftermarket growth guidance of high single digits is below fiscal 2026’s 14% growth, and management cited continued uncertainty around travel demand.
• The company repurchased $2.75 billion of shares and deployed about $4.4 billion in acquisitions during fiscal 2026, while ending the year at 5.9 times net debt to EBITDA. Management expects leverage to fall below 5 times by fiscal 2027 year-end, assuming no additional acquisitions, buybacks, or dividends.

Transdigm Group Stock Performance

Shares of NYSE:TDG traded up $18.98 during midday trading on Tuesday, hitting $1,237.83. 192,358 shares of the company's stock traded hands, compared to its average volume of 391,615. The company has a market cap of $69.23 billion, a PE ratio of 37.56, a P/E/G ratio of 1.74 and a beta of 0.98. The firm's fifty day moving average price is $1,130.72 and its two-hundred day moving average price is $1,222.01. Transdigm Group has a twelve month low of $1,071.25 and a twelve month high of $1,463.03.

Analyst Ratings Changes

Several equities research analysts have commented on the company. BMO Capital Markets dropped their price target on Transdigm Group from $1,525.00 to $1,400.00 and set an "outperform" rating for the company in a research note on Monday, September 28th. UBS Group lifted their price objective on Transdigm Group from $1,585.00 to $1,695.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Wells Fargo & Company reduced their price objective on Transdigm Group from $1,450.00 to $1,210.00 and set an "equal weight" rating on the stock in a research note on Wednesday, September 30th. TD Cowen decreased their target price on Transdigm Group from $1,450.00 to $1,300.00 and set a "buy" rating for the company in a report on Friday, October 9th. Finally, The Goldman Sachs Group dropped their target price on shares of Transdigm Group from $1,972.00 to $1,745.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Five research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $1,428.40.

Key Headlines Impacting Transdigm Group

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

• Positive Sentiment: Adjusted EPS of $12.44 beat the $12.21 consensus and rose 15% year over year. Revenue increased 23% to $2.99 billion, topping estimates of about $2.95 billion; EBITDA as defined grew 20%. TransDigm Group fiscal 2026 fourth-quarter and year-end results
• Positive Sentiment: Fiscal 2027 revenue guidance of $12.0 billion–$12.2 billion exceeds the analyst consensus of $11.7 billion, signaling expectations for continued growth. TransDigm Group sees growth in FY27
• Negative Sentiment: Fiscal 2027 adjusted EPS guidance of $47.09–$47.94 has a midpoint below the $47.91 consensus, leaving the profit outlook short of expectations except near the top of the range. This may offset some of the positive surprise from the quarter. TransDigm profit outlook falls short of estimates

Insiders Place Their Bets

In related news, Director W. Howley sold 10,132 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total value of $12,525,988.96. Following the completion of the sale, the director directly owned 21,548 shares in the company, valued at approximately $26,639,361.44. This represents a 31.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Joel Reiss sold 4,100 shares of the firm's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $1,128.04, for a total value of $4,624,964.00. Following the completion of the transaction, the chief operating officer directly owned 3,600 shares in the company, valued at $4,060,944. This trade represents a 53.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 22,032 shares of company stock valued at $26,250,979. 3.20% of the stock is owned by corporate insiders.

Transdigm Group Company Profile

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