Transdigm Group (NYSE:TDG) Posts Earnings Results, Beats Expectations By $0.42 EPS

Key Points

• Earnings beat and raised guidance: TransDigm reported GAAP EPS of $9.85 versus a $9.43 consensus and revenue of $2.54B (+18.3% YoY), and updated FY2026 guidance to 38.830–40.210 EPS.
• Stock reaction and valuation: Shares jumped $59.14 to $1,208.86 after the print; the company has a ~$68.26B market cap and a P/E of 38.87.
• Mixed insider and analyst signals: CEO Michael Lisman bought 950 shares (~$1.22M) while the COO sold 3,900 shares and insiders have sold ~38,232 shares in the last 90 days; analysts' consensus is a "Moderate Buy" with a $1,567.40 average target amid several rating changes.

Transdigm Group (NYSE:TDG - Get Free Report) announced its quarterly earnings results on Tuesday. The aerospace company reported $9.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.43 by $0.42, FiscalAI reports. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.47 billion. Transdigm Group had a net margin of 20.50% and a negative return on equity of 29.07%. The firm's revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $9.11 EPS. Transdigm Group updated its FY 2026 guidance to 38.830-40.210 EPS.

Transdigm Group Stock Performance

Shares of TDG stock traded up $59.14 on Tuesday, hitting $1,208.86. The company had a trading volume of 139,914 shares, compared to its average volume of 387,034. Transdigm Group has a twelve month low of $1,123.61 and a twelve month high of $1,623.82. The firm has a market cap of $68.26 billion, a P/E ratio of 38.87, a P/E/G ratio of 2.44 and a beta of 0.90. The stock's 50-day moving average is $1,223.02 and its two-hundred day moving average is $1,296.44.

Insider Buying and Selling

In related news, CEO Michael Lisman bought 950 shares of Transdigm Group stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average cost of $1,284.26 per share, for a total transaction of $1,220,047.00. Following the completion of the acquisition, the chief executive officer directly owned 3,259 shares of the company's stock, valued at approximately $4,185,403.34. The trade was a 41.14% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Joel Reiss sold 3,900 shares of the stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $1,280.46, for a total transaction of $4,993,794.00. Following the sale, the chief operating officer directly owned 3,600 shares of the company's stock, valued at $4,609,656. This represents a 52.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 38,232 shares of company stock valued at $48,248,925 over the last ninety days. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Transdigm Group

A number of hedge funds have recently bought and sold shares of TDG. Empowered Funds LLC boosted its position in Transdigm Group by 5.0% during the first quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company's stock valued at $1,898,000 after acquiring an additional 65 shares during the last quarter. Acadian Asset Management LLC raised its position in shares of Transdigm Group by 92.3% in the 1st quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company's stock worth $376,000 after acquiring an additional 131 shares in the last quarter. NewEdge Advisors LLC lifted its stake in shares of Transdigm Group by 152.9% in the 2nd quarter. NewEdge Advisors LLC now owns 2,064 shares of the aerospace company's stock valued at $3,138,000 after purchasing an additional 1,248 shares during the period. Sei Investments Co. lifted its stake in shares of Transdigm Group by 25.4% in the 2nd quarter. Sei Investments Co. now owns 33,032 shares of the aerospace company's stock valued at $50,227,000 after purchasing an additional 6,697 shares during the period. Finally, Treasurer of the State of North Carolina boosted its position in shares of Transdigm Group by 3.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 25,821 shares of the aerospace company's stock valued at $39,264,000 after purchasing an additional 902 shares in the last quarter. Institutional investors own 95.78% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on TDG shares. Robert W. Baird restated a "neutral" rating and issued a $1,400.00 target price on shares of Transdigm Group in a research report on Wednesday, February 4th. KeyCorp downgraded shares of Transdigm Group from an "overweight" rating to a "sector weight" rating in a report on Thursday, February 5th. Weiss Ratings cut Transdigm Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, April 13th. UBS Group cut their price objective on Transdigm Group from $1,804.00 to $1,800.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. Finally, Wells Fargo & Company began coverage on Transdigm Group in a research report on Wednesday, April 1st. They set an "equal weight" rating and a $1,200.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,567.40.

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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