Revenue Growth
TDG's revenue increased by 18.3% year-over-year, reaching $2.544 billion, primarily due to higher sales volumes and favorable market conditions.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
TDG reported strong revenue growth of 18.3% in Q2 FY2026, driven by increased sales and improved operational efficiency, despite a significant rise in long-term debt.
Revenue
$2.54B
+18.33% YoY
EPS (Diluted)
$9.20
+11.65% YoY
Gross Margin
59.4%
+0.1 pts YoY
Operating Income
$1.18B
+18.87% YoY
Source: SEC XBRL
TransDigm Group (TDG) reported Q2 FY2026 revenue of $2.54B, up 18.3% year over year. Operating margin was 46.3%, up 0.2 points from 46.1% a year earlier. TDG's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 10.87 | 10.40 | Beat +4.5% |
| Mar 2026This filing | 9.85 | 9.53 | Beat +3.4% |
| Dec 2025 | 8.23 | 8.18 | Beat +0.6% |
| Sep 2025 | 10.82 | 10.14 | Beat +6.7% |
Adjusted (non-GAAP) EPS of $9.85 versus the $9.53 analyst consensus — a +3.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $9.20.
Compiled by AI from this SEC filing
TDG's revenue increased by 18.3% year-over-year, reaching $2.544 billion, primarily due to higher sales volumes and favorable market conditions.
Source: 10-Q Income Statement
The cost of revenue rose by 17.9%, slightly below the revenue growth rate, contributing to a stable gross margin of 59.4%.
Source: 10-Q Income Statement
Long-term debt increased by 28.2% to $31.279 billion, which may impact future financial flexibility.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 2 high, 1 medium, 0 low
TDG's long-term debt increased by 28.2% to $31.279 billion, raising concerns about its ability to manage interest payments and refinance obligations.
Source: 10-Q Balance Sheet
The company reported a negative stockholders' equity of $9.402 billion, which could limit its ability to raise capital through equity markets.
Source: 10-Q Balance Sheet
Investing cash flow was negative at $1.137 billion, indicating significant capital expenditures that may not immediately translate into revenue.
Source: 10-Q Cash Flow
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.54 $B | 2.15 $B | +18.33% |
Cost of Revenue $B | 1.03 $B | 0.88 $B | +17.92% |
Gross Profit $B | 1.51 $B | 1.27 $B | +18.60% |
Operating Income $B | 1.18 $B | 0.99 $B | +18.87% |
Net Income $M | 535.00 $M | 479.00 $M | +11.69% |
EPS (Basic) $ | 9.20 $ | 8.24 $ | +11.65% |
EPS (Diluted) $ | 9.20 $ | 8.24 $ | +11.65% |
SG&A Expense $M | 273.00 $M | 236.00 $M | +15.68% |
Answers draw on this SEC filing and the data on this page
TransDigm's fiscal third quarter saw organic sales rise 12.6% as commercial aerospace demand remained robust, though acquisition costs and higher debt lifted expenses.
TDG reported Q1 FY2026 revenue of $2.285B (+13.9% YoY) driven by strong top-line growth, but net income fell 9.7% to $445M as higher costs, elevated SG&A, and surging long-term debt to $29.3B weighed on profitability and deepened negative stockholders' equity to -$9.27B.
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