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

Key Points

• FY 2026 guidance: Transdigm raised guidance to EPS $38.830–40.210 and revenue of $10.3–10.4 billion, both above Wall Street consensus (EPS $38.62; revenue $10.1B).
• The company also beat on the latest quarter, reporting EPS $9.85 and revenue of $2.54 billion versus estimates of $9.43 and $2.47 billion, respectively.
• Insider selling has been notable—38,232 shares (~$48.25M) sold in the last three months—while analyst consensus remains a "Moderate Buy" with a $1,567.40 price target.

Transdigm Group (NYSE:TDG - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 38.830-40.210 for the period, compared to the consensus earnings per share estimate of 38.620. The company issued revenue guidance of $10.3 billion-$10.4 billion, compared to the consensus revenue estimate of $10.1 billion.

Transdigm Group Price Performance

Shares of Transdigm Group stock opened at $1,150.09 on Tuesday. The firm has a market cap of $64.95 billion, a price-to-earnings ratio of 37.00, a P/E/G ratio of 2.44 and a beta of 0.90. Transdigm Group has a 52-week low of $1,123.61 and a 52-week high of $1,623.82. The stock has a 50-day simple moving average of $1,223.02 and a 200-day simple moving average of $1,296.44.

Transdigm Group (NYSE:TDG - Get Free Report) last posted its earnings results on Tuesday, May 5th. The aerospace company reported $9.85 earnings per share for the quarter, beating the consensus estimate of $9.43 by $0.42. Transdigm Group had a negative return on equity of 29.07% and a net margin of 20.50%.The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.47 billion. Transdigm Group has set its FY 2026 guidance at 38.830-40.210 EPS. As a group, equities research analysts predict that Transdigm Group will post 36.71 earnings per share for the current year.

Wall Street Analyst Weigh In

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

Insider Activity

In other Transdigm Group news, Director W Nicholas Howley sold 10,132 shares of the company's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $1,265.06, for a total value of $12,817,587.92. Following the completion of the transaction, the director owned 21,548 shares of the company's stock, valued at $27,259,512.88. This represents a 31.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Joel Reiss sold 3,900 shares of the company's 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 value of $4,993,794.00. Following the completion of the transaction, the chief operating officer directly owned 3,600 shares of the company's stock, valued at approximately $4,609,656. This trade represents a 52.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 38,232 shares of company stock valued at $48,248,925. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. State Street Corp raised its position in Transdigm Group by 2.8% in the fourth quarter. State Street Corp now owns 2,456,186 shares of the aerospace company's stock worth $3,266,359,000 after purchasing an additional 67,348 shares in the last quarter. Invesco Ltd. raised its position in Transdigm Group by 1.4% in the fourth quarter. Invesco Ltd. now owns 427,968 shares of the aerospace company's stock worth $569,133,000 after purchasing an additional 6,087 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in Transdigm Group by 2.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 396,578 shares of the aerospace company's stock worth $527,389,000 after purchasing an additional 8,451 shares in the last quarter. Bank of America Corp DE raised its position in Transdigm Group by 2.0% in the second quarter. Bank of America Corp DE now owns 359,563 shares of the aerospace company's stock worth $546,766,000 after purchasing an additional 6,947 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Transdigm Group by 4.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 289,814 shares of the aerospace company's stock valued at $385,409,000 after purchasing an additional 12,881 shares in the last quarter. 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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