Transdigm Group (NYSE:TDG) Issues FY 2026 Earnings Guidance

Key Points

• TransDigm issued FY 2026 guidance above analyst expectations, forecasting EPS of $40.620–$41.460 versus a $39.670 consensus and revenue of $10.5–$10.6 billion versus $10.3 billion expected.
• The company’s latest quarter also exceeded estimates, with EPS of $10.87 and revenue of $2.74 billion; revenue increased 22.5% year over year.
• Despite strong results, analysts maintain a consensus “Hold” rating, while insiders sold approximately $47.1 million of shares during the latest quarter.

Transdigm Group (NYSE:TDG - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 40.620-41.460 for the period, compared to the consensus estimate of 39.670. The company issued revenue guidance of $10.5 billion-$10.6 billion, compared to the consensus revenue estimate of $10.3 billion.

Transdigm Group Price Performance

Shares of TDG stock opened at $1,293.77 on Tuesday. The firm's 50-day moving average is $1,270.89 and its two-hundred day moving average is $1,264.88. Transdigm Group has a 12 month low of $1,123.61 and a 12 month high of $1,466.13. The company has a market capitalization of $72.36 billion, a PE ratio of 40.94, a price-to-earnings-growth ratio of 2.21 and a beta of 0.91.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $10.87 EPS for the quarter, topping analysts' consensus estimates of $10.30 by $0.57. The company had revenue of $2.74 billion for the quarter, compared to analysts' expectations of $2.68 billion. Transdigm Group had a negative return on equity of 26.49% and a net margin of 20.24%.The firm's revenue was up 22.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $9.60 earnings per share. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. Sell-side analysts forecast that Transdigm Group will post 37.77 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on TDG. Morgan Stanley downgraded shares of Transdigm Group from an "overweight" rating to an "equal weight" rating and reduced their price objective for the stock from $1,680.00 to $1,345.00 in a research report on Wednesday, July 15th. Wall Street Zen lowered shares of Transdigm Group from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. JPMorgan Chase & Co. boosted their price target on shares of Transdigm Group from $1,440.00 to $1,450.00 and gave the company a "neutral" rating in a research report on Monday, June 15th. BNP Paribas Exane cut their target price on Transdigm Group from $1,800.00 to $1,750.00 and set an "outperform" rating on the stock in a research report on Thursday, May 14th. Finally, Weiss Ratings downgraded Transdigm Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 2nd. Seven analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $1,477.47.

Insider Transactions at Transdigm Group

In other Transdigm Group news, COO Joel Reiss sold 3,900 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $1,276.78, for a total transaction of $4,979,442.00. Following the transaction, the chief operating officer owned 3,600 shares of the company's stock, valued at $4,596,408. This trade represents a 52.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director W Nicholas Howley sold 10,132 shares of Transdigm Group stock in a transaction on Monday, July 20th. The shares were sold at an average price of $1,216.08, for a total value of $12,321,322.56. Following the completion of the transaction, the director owned 21,548 shares in the company, valued at $26,204,091.84. The trade was a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 38,196 shares of company stock valued at $47,135,464. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Transdigm Group

A number of large investors have recently modified their holdings of TDG. Veritas Asset Management LLP acquired a new stake in Transdigm Group during the 4th quarter worth about $188,629,000. State Street Corp boosted its stake in shares of Transdigm Group by 2.8% during the 4th quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock valued at $3,266,359,000 after buying an additional 67,348 shares during the period. Corient Private Wealth LLC boosted its position in Transdigm Group by 94.6% during the second quarter. Corient Private Wealth LLC now owns 136,898 shares of the aerospace company's stock valued at $208,284,000 after purchasing an additional 66,559 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of Transdigm Group in the 4th quarter valued at approximately $61,951,000. Finally, Estuary Capital Management LP acquired a new stake in shares of Transdigm Group in the 4th quarter valued at $36,597,000. Institutional investors and hedge funds own 95.78% of the company's stock.

About Transdigm Group

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.

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