Transdigm Group (NYSE:TDG) Posts Earnings Results, Beats Estimates By $0.23 EPS

Transdigm Group (NYSE:TDG) posted its earnings results on Tuesday. The aerospace company reported $12.44 EPS for the quarter, topping analysts’ consensus estimates of $12.21 by $0.23, FiscalAI reports. The business had revenue of $2.99 billion for the quarter, compared to analysts’ expectations of $2.95 billion. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period in the previous year, the company posted $10.82 earnings per share. Transdigm Group updated its FY 2027 guidance to 47.090-47.940 EPS.

Here are the key takeaways from Transdigm Group’s conference call:

• TransDigm reported broad-based strength in fiscal 2026: all three major end markets grew at double-digit rates in Q4 and for the full year, and revenue and EBITDA exceeded the company’s latest guidance. Q4 EBITDA margin reached 53%, its highest of the year.
• Fiscal 2027 guidance calls for revenue of about $12.05 billion, up approximately 14%, and EBITDA of about $6.27 billion, up approximately 13%. The company expects high-single-digit or better growth across commercial OEM, commercial aftermarket, and defense.
• Commercial OEM momentum is supported by higher Boeing and Airbus production, while defense enters the new year with a healthy backlog and bookings well above the prior year. Management also expects underlying margin improvement of 1%–1.5%, though recent acquisitions are expected to dilute fiscal 2027 reported margins by about two percentage points.
• Commercial aftermarket demand remained healthy despite elevated oil prices and weaker-than-forecast RPKs, with bookings exceeding sales for the year. However, fiscal 2027 aftermarket growth guidance of high single digits is below fiscal 2026’s 14% growth, and management cited continued uncertainty around travel demand.
• The company repurchased $2.75 billion of shares and deployed about $4.4 billion in acquisitions during fiscal 2026, while ending the year at 5.9 times net debt to EBITDA. Management expects leverage to fall below 5 times by fiscal 2027 year-end, assuming no additional acquisitions, buybacks, or dividends.

Transdigm Group Trading Up 1.6%

Transdigm Group stock traded up $18.98 during midday trading on Tuesday, hitting $1,237.83. The stock had a trading volume of 192,358 shares, compared to its average volume of 391,615. The business has a fifty day moving average price of $1,130.72 and a 200 day moving average price of $1,222.01. Transdigm Group has a 12 month low of $1,071.25 and a 12 month high of $1,463.03. The stock has a market cap of $69.23 billion, a P/E ratio of 37.56, a P/E/G ratio of 1.74 and a beta of 0.98.

Trending Headlines about Transdigm Group

Here are the key news stories impacting Transdigm Group this week:

• Positive Sentiment: Adjusted EPS of $12.44 beat the $12.21 consensus and rose 15% year over year. Revenue increased 23% to $2.99 billion, topping estimates of about $2.95 billion; EBITDA as defined grew 20%. TransDigm Group fiscal 2026 fourth-quarter and year-end results
• Positive Sentiment: Fiscal 2027 revenue guidance of $12.0 billion–$12.2 billion exceeds the analyst consensus of $11.7 billion, signaling expectations for continued growth. TransDigm Group sees growth in FY27
• Negative Sentiment: Fiscal 2027 adjusted EPS guidance of $47.09–$47.94 has a midpoint below the $47.91 consensus, leaving the profit outlook short of expectations except near the top of the range. This may offset some of the positive surprise from the quarter. TransDigm profit outlook falls short of estimates

Insider Buying and Selling

In other news, Director W. Howley sold 10,132 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total value of $12,525,988.96. Following the completion of the sale, the director directly owned 21,548 shares in the company, valued at approximately $26,639,361.44. The trade was a 31.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Joel Reiss sold 4,100 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $1,128.04, for a total value of $4,624,964.00. Following the completion of the sale, the chief operating officer owned 3,600 shares of the company’s stock, valued at $4,060,944. This trade represents a 53.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 22,032 shares of company stock worth $26,250,979. 3.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

TDG has been the subject of a number of recent analyst reports. Melius Research lowered shares of Transdigm Group from a “buy” rating to a “hold” rating and set a $1,331.00 price target for the company. in a report on Monday, September 14th. BMO Capital Markets cut their price objective on shares of Transdigm Group from $1,525.00 to $1,400.00 and set an “outperform” rating on the stock in a report on Monday, September 28th. Wells Fargo & Company decreased their price objective on shares of Transdigm Group from $1,450.00 to $1,210.00 and set an “equal weight” rating for the company in a research report on Wednesday, September 30th. TD Cowen lowered their target price on Transdigm Group from $1,450.00 to $1,300.00 and set a “buy” rating for the company in a research note on Friday, October 9th. Finally, JPMorgan Chase & Co. dropped their target price on Transdigm Group from $1,450.00 to $1,415.00 and set a “neutral” rating on the stock in a research report on Thursday, September 17th. Five equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, Transdigm Group currently has a consensus rating of “Hold” and a consensus target price of $1,428.40.

About Transdigm Group