AI Takeaway
Teledyne delivered strong Q2 FY2026 profitability growth, with revenue up 9.8% to $1.7B and net income up 19.9% to $251.7M, aided by higher sales, favorable product mix, tariff refunds, and lower interest expense. Source: 10-Q Item 2 MD&A, pp.24-25.
Revenue
$1.66B
++9.83% YoY
EPS (Basic)
$5.44
++21.43% YoY
Operating Income
$333.2M
++19.77% YoY
Filed · Source: SEC EDGAR 10-Q filing
Teledyne Technologies (TDY) reported Q2 FY2026 revenue of $1.66B, up 9.8% year over year. The company posted net income of $251.7M, up 19.9% from a year earlier, with diluted EPS of $5.37.
Q2 FY2026 net sales rose 9.8% year over year to $1.7B. Digital Imaging grew 12.7% to $868.7M, Instrumentation grew 5.5% to $387.8M, Aerospace and Defense Electronics grew 8.2% to $286.4M, and Engineered Systems grew 8.4% to $119.6M; recent acquisitions contributed $12.2M of incremental sales in Digital Imaging and Instrumentation.
Source: 10-Q Item 2 MD&A, pp.24-25
Digital Imaging operating income increased 42.3% year over year to $170.2M, and its operating margin expanded to 19.6% from 15.5%. Management attributed the improvement to higher sales, favorable product mix, and tariff refunds, partly offset by higher R&D spending related to FLIR product-development activities.
Source: 10-Q Item 2 MD&A, pp.24, 27-28
Cost of sales increased 6.4% to $924.4M, below the 9.8% sales increase, reducing cost of sales as a percentage of revenue to 55.6% from 57.4%. Management cited higher sales partially offset by tariff refunds, primarily in Digital Imaging, while total operating income increased 19.8% to $333.2M.
Source: 10-Q Item 2 MD&A, pp.24-25
Teledyne repaid $450.0M of Fixed Rate Senior Notes in Q2 FY2026. Total debt was $2.0B at June 28, 2026, down from $2.5B at December 28, 2025; net interest and debt expense declined to $13.6M from $17.6M in the quarter, and available borrowing capacity was $1.2B.
Source: 10-Q Item 2 MD&A, pp.25, 31
Year-to-date operating cash flow increased 17.1% to $549.2M, driven by favorable operating results and lower income-tax payments, partly offset by higher inventory purchases. The company spent $60.2M on capital expenditures in the first six months and plans approximately $150.0M of capital expenditures during 2026.
Source: 10-Q Item 2 MD&A, pp.31-32
Long-term debt was $2.0B at Q2 FY2026, equal to a debt-to-equity ratio of 0.40. Although debt declined year over year, the remaining debt balance could require continued operating cash generation or access to financing to service and refinance obligations.
Source: 10-Q Condensed Consolidated Balance Sheets (XBRL), p.Not provided
Cash and equivalents were $340.1M, while current liabilities were $1.5B at Q2 FY2026. The current ratio of 2.18 indicates current assets exceeded current liabilities, but liquidity remains dependent on converting current assets and sustaining cash flow to meet obligations.
Source: 10-Q Condensed Consolidated Balance Sheets (XBRL), p.Not provided
Operating cash flow was $549.2M for the first six months of FY2026, while investing cash flow used $118.8M and financing cash flow used $436.7M. The substantial financing outflow, together with investing requirements, can reduce cash available for other corporate purposes if operating cash flow weakens.
Source: 10-Q Condensed Consolidated Statements of Cash Flows (XBRL), p.Not provided
Reported EPS of $6.28 versus the $5.85 analyst consensus — a +7.3% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.66B | $1.51B | +9.83% |
Cost of Revenue | $924.4M | $869.1M | +6.36% |
Operating Income | $333.2M | $278.2M | +19.77% |
Net Income | $251.7M | $209.9M | +19.91% |
EPS (Basic) | $5.44 | $4.48 | +21.43% |
EPS (Diluted) | $5.37 | $4.43 | +21.22% |
R&D Expense | $90.2M | $82.4M | +9.47% |
SG&A Expense | $258.7M | $229.4M | +12.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $15.28B | $15.14B | +0.96% |
Current Assets | $3.2B | $2.92B | +9.53% |
Total Liabilities | $4.36B | $4.75B | -8.21% |
Current Liabilities | $1.47B | $1.76B | -16.53% |
Stockholders' Equity | $10.92B | $10.38B | +5.22% |
Cash & Equivalents | $340.1M | $310.9M | +9.39% |
Long-Term Debt | $2.03B | $2.62B | -22.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $549.2M | $469.2M | +17.05% |
Investing Cash FlowYTD | $-118.8M | $-805.2M | +85.25% |
Financing Cash FlowYTD | $-436.7M | $-4.8M | -8997.92% |
Share BuybacksYTD | $2.9M | $2.9M | 0.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 20.0% | 18.4% | +1.66% |
Net Margin | 15.1% | — | — |
ROE | 2.3% | — | — |
ROA | 1.6% | — | — |
Current Ratio | $2.181 | — | — |
Debt to Equity | $0.399 | — | — |
Expected release date, analyst estimates & what to watch
Teledyne Technologies (TDY) delivered strong Q1 FY2026 results with revenue of $1.56B (+7.6% YoY), net income of $226.8M (+20.3% YoY), and diluted EPS of $4.85 (+21.6% YoY), driven by expanding operating margins and significant long-term debt reduction.
Teledyne Technologies (TDY) delivered solid FY2025 results with revenue growing 7.9% to $6.12B and operating income surging 16.2% to $1.15B, reflecting improved operating leverage and disciplined cost management.
Other companies in Electronic Equipment & Instruments
Teledyne reported Q2 FY2026 revenue of $1.7B, up 9.8% year over year, and net income attributable to Teledyne of $251.7M, up 19.9%. Diluted EPS increased 21.2% to $5.37, while operating income rose 19.8% to $333.2M. Source: 10-Q Item 2 MD&A, pp.24-25.
All four segments grew, led by Digital Imaging, where revenue rose 12.7% to $868.7M. Management cited increased sales of infrared imaging detectors and subsystems, surveillance systems, industrial and scientific imaging systems, and X-ray products; recent acquisitions added $12.2M of consolidated sales. Source: 10-Q Item 2 MD&A, pp.24, 27-28.
Cost of sales increased 6.4%, less than the 9.8% increase in revenue, and cost of sales fell to 55.6% of revenue from 57.4%. Management attributed this improvement principally to favorable product mix and tariff refunds, particularly in Digital Imaging. Source: 10-Q Item 2 MD&A, p.25.
Teledyne had $340.1M of cash and equivalents, a 2.18 current ratio, and $10.9B of stockholders’ equity. Long-term debt was $2.0B, down 22.6% year over year, while six-month operating cash flow increased 17.1% to $549.2M. Source: 10-Q Condensed Consolidated Balance Sheets and Statements of Cash Flows (XBRL), p.Not provided.
The filing reports diluted EPS of $5.37, compared with $4.43 in the prior-year quarter, but it does not provide analyst consensus estimates. Therefore, whether Teledyne beat or missed external earnings estimates cannot be determined from this 10-Q alone. Source: 10-Q Item 2 MD&A, p.25.