THOUSAND OAKS, Calif. - October 21, 2026 - Teledyne Technologies Incorporated (NYSE:TDY)
- All-time record quarterly sales, operating profit and non-GAAP diluted earnings per share
- Third quarter net sales of $1,684.9 million, an increase of 9.4% compared with last year
- Third quarter GAAP diluted earnings per share of $5.82, an increase of 25.2% compared with last year
- Third quarter non-GAAP diluted earnings per share of $6.72, an increase of 20.6% compared with last year
- Third quarter cash from operations of $352.5 million and free cash flow of $319.5 million
- Raising full year 2026 GAAP diluted earnings per share outlook to $21.71 to $21.87 compared with the prior outlook of $20.73 to $20.99, and raising full year 2026 non-GAAP earnings per share outlook to $25.40 to $25.50, compared with the prior outlook of $24.45 to $24.65
- Announced pending acquisition of Varex Imaging Corporation for approximately $1.1 billion
- Quarter-end consolidated leverage ratio of 0.9x
- Stock repurchases in September and through October 19th totaling $224.6 million at a weighted average price of $607.03 per share
Teledyne today reported third quarter 2026 net sales of $1,684.9 million compared with net sales of $1,539.5 million for the third quarter of 2025, an increase of 9.4%. The third quarter of 2026 net sales included $11.7 million in incremental sales from recent acquisitions. Net income attributable to Teledyne was $272.8 million ($5.82 diluted earnings per share) for the third quarter of 2026 compared with $220.7 million ($4.65 diluted earnings per share) for the third quarter of 2025, an increase of 23.6%. The third quarter of 2026 included $55.2 million of pretax acquired intangible asset amortization expense and $0.2 million of pretax transaction and integration costs. Excluding those items, non-GAAP net income attributable to Teledyne for the third quarter of 2026 was $315.1 million ($6.72 diluted earnings per share). The third quarter of 2025 included $55.1 million of pretax acquired intangible asset amortization expense, $0.7 million of pretax transaction and integration costs, $1.4 million of pretax inventory step-up expense, and $0.2 million of income tax expense from FLIR acquisition-related tax matters. Excluding those items, non-GAAP net income attributable to Teledyne for the third quarter of 2025 was $264.5 million ($5.57 diluted earnings per share). Operating margin was 20.6% for the third quarter of 2026 compared with 18.4% for the third quarter of 2025. Excluding the items discussed above, non-GAAP operating margin for the third quarter of 2026 was 23.9% compared with 22.1% for the third quarter of 2025.
"Our third quarter sales and operating earnings were the strongest in Teledyne's history," said Robert Mehrabian, Executive Chairman. "Specifically, sales and non-GAAP earnings per share increased 9.4% and 20.6%, respectively. Organic growth accelerated in our Digital Imaging segment and was led by sales of infrared detectors and subsystems for space and unmanned applications. Furthermore, each of our major commercial imaging businesses, such as industrial vision sensors & systems and healthcare, increased year-over-year. For all of Teledyne, orders exceeded sales every quarter over the last three years, and funded backlog is now nearly $5.3 billion. We were pleased to announce the pending highly-complementary Varex acquisition in August, and Varex's special meeting is scheduled for October 28. Finally, given our continued strong cash flow, we recently made $224.6 million of opportunistic stock repurchases."
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