AI Takeaway
TT reported Q1 FY2026 revenue of $4.97B (+6.0% YoY) but saw operating income decline 5.2% to $776.1M as rising SG&A expenses (+10.9%) and cost of revenue (+7.6%) compressed margins, while operating cash flow surged 84.4% to $626.2M.
Revenue
$4.97B
++5.99% YoY
EPS (Basic)
$2.64
-2.22% YoY
Operating Income
$776.1M
-5.23% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
TT grew revenue by 6.0% YoY to $4.97B in Q1 FY2026, up from $4.69B in the prior-year period, indicating continued demand for its products and services despite a challenging cost environment.
Source: Source: 10-Q Income Statement
Operating margin declined approximately 1.8 percentage points YoY to 15.6%, as cost of revenue grew faster than revenue (+7.6% vs. +6.0%) and SG&A expenses surged 10.9% YoY to $952.0M, outpacing top-line growth and squeezing profitability.
Source: Source: 10-Q Income Statement & Key Ratios
Operating cash flow jumped 84.4% YoY to $626.2M from $339.5M, suggesting improved working capital management or favorable timing of cash collections and payments, even as net income declined modestly.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockSG&A expenses rose 10.9% YoY to $952.0M, significantly outpacing revenue growth of 6.0%. If this trend continues, operating margins will face sustained compression, potentially eroding profitability even as the top line expands.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $2.63 versus the $2.61 analyst consensus — a +0.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.97B | $4.69B | +5.99% |
Cost of Revenue | $3.24B | $3.01B | +7.65% |
Operating Income | $776.1M | $818.9M | -5.23% |
Net Income | $584.4M | $604.9M | -3.39% |
EPS (Basic) | $2.64 | $2.70 | -2.22% |
EPS (Diluted) | $2.62 | $2.67 | -1.87% |
SG&A Expense | $952M | $858.6M | +10.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $22.75B | $20.12B | +13.11% |
Current Assets | $8B | $6.93B | +15.38% |
Total Liabilities | $14.14B | $12.6B | +12.24% |
Current Liabilities | $7.31B | $6.37B | +14.74% |
Stockholders' Equity | $8.59B | $7.49B | +14.68% |
Long-Term Debt | $3.92B | $3.92B | +0.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $626.2M | $339.5M | +84.45% |
Investing Cash Flow | $-755.7M | $-385.1M | -96.23% |
Financing Cash Flow | $-546M | $-723.1M | +24.49% |
Share Buybacks | $287.3M | $477.5M | -39.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 15.6% | 17.5% | -1.85% |
Net Margin | 11.8% | — | — |
ROE | 6.8% | — | — |
ROA | 2.6% | — | — |
Current Ratio | $1.095 | — | — |
Debt to Equity | $1.646 | — | — |
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TT's Q1 FY2026 results showed revenue growth of 6.0% to $4.97B, but profitability declined as operating income fell 5.2% to $776.1M due to SG&A expenses surging 10.9% to $952.0M. The bright spot was operating cash flow, which jumped 84.4% YoY to $626.2M, though heavy investing outflows of $755.7M resulted in negative free cash flow.
Yes, TT grew revenue 6.0% YoY to $4.97B in Q1 FY2026, compared to $4.69B in the prior-year period. However, cost of revenue grew faster at 7.6%, which pressured gross and operating margins.
TT's operating income fell 5.2% YoY to $776.1M despite revenue growth because SG&A expenses surged 10.9% to $952.0M and cost of revenue rose 7.6%, both outpacing the 6.0% revenue increase. This caused operating margin to compress from 17.5% to 15.6% YoY.
TT's balance sheet shows total assets of $22.75B and stockholders' equity of $8.59B, with a debt-to-equity ratio of approximately 1.65 and long-term debt essentially flat at $3.92B. The current ratio of 1.10 indicates adequate but tight short-term liquidity, and the strong operating cash flow of $626.2M supports near-term financial stability.
TT's diluted EPS declined 1.9% YoY to $2.62 in Q1 FY2026, down from $2.67 in the prior-year period, as rising operating costs offset revenue growth and weighed on net income, which fell 3.4% to $584.4M.