Revenue growth was broad-based across all four operating segments
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.
Digital Imaging drove the operating-profit improvement
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.
Company-wide margins expanded as cost of sales grew more slowly than revenue
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.