TransDigm Group Inc. (TDG) declined 0.7% following the release of fiscal 2026 first quarter results on February 3, 2026. The company reported net sales of $2.285 billion, up 14% year-over-year, and adjusted earnings per share of $8.23, beating estimates by $0.24. However, net income decreased 9.7% to $445 million due to higher interest expense from recent acquisitions and increased debt. The company issued fiscal 2026 guidance with adjusted earnings per share ranging from $37.42 to $39.34, with the midpoint below Wall Street's consensus estimate of $39.03 per share. Management cited margin pressure from higher interest expenses and rising raw material costs. Analyst Jefferies reduced its price target to $1,565 from $1,635, describing recent quarter results as relatively unimpressive, though maintaining a Buy rating.
Read full analysisTransDigm Group Inc. (TDG) declined 0.7% following the release of fiscal 2026 first quarter results on February 3, 2026. The company reported net sales of $2.285 billion, up 14% year-over-year, and adjusted earnings per share of $8.23, beating estimates by $0.24. However, net income decreased 9.7% to $445 million due to higher interest expense from recent acquisitions and increased debt. The company issued fiscal 2026 guidance with adjusted earnings per share ranging from $37.42 to $39.34, with the midpoint below Wall Street's consensus estimate of $39.03 per share. Management cited margin pressure from higher interest expenses and rising raw material costs. Analyst Jefferies reduced its price target to $1,565 from $1,635, describing recent quarter results as relatively unimpressive, though maintaining a Buy rating.
TransDigm designs and manufactures highly engineered aircraft components for commercial and military aviation, known for its aggressive acquisition strategy and industry-leading margins — its EBITDA As Defined margin reached 52.4% in the most recent quarter. The company recently acquired Stellant Systems for $960 million to expand into defense electronics, and reported Q1 fiscal 2026 adjusted EPS of $8.23 on $2.29 billion in revenue. Today's continued weakness follows an unexplained sharp pullback, with no fresh company news to account for the divergence from rallying peers.