01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported first-quarter 2026 net sales of $1.56 billiona, up 7.6% from $1.45 billion in the first quarter of 2025.
Operating income rose 13.5% to $294.2 millionb, and net income attributable to Teledyne increased 20.3% to $226.8 million, or $4.85 per diluted share versus $3.99 a year earlier. Growth was led by Digital Imaging (sales up 7.9%) and Aerospace and Defense Electronics (up 14.4%), partly offset by lower Engineered Systems sales. Instrumentation operating income declined 4.6% on unfavorable product mix.
The filing notes $33.3 millionc of incremental sales from recent acquisitions. Cash and cash equivalents increased to $521.4 million from $352.4 million at December 28, 2025, driven by $234.0 million of operating cash flow, partly offset by $53.4 million for the DD-Scientific acquisition and $29.7 million of capital expenditures. Total debt, net was $2,476.3 million.
Subsequent to quarter-end, the company repaid $450.0 milliond of 1.60% senior notes due April 2026, primarily from cash on hand. No share repurchases were made in the quarter, and $1.6 billion remained under the $2.0 billion authorization.
The filing also discloses a February 2026 settlement in which Teledyne FLIR LLC paid a $1.0 million civil penalty to the Bureau of Industry and Security over export control matters, and management reports that the Middle East conflict and tariff developments are being monitored. Remaining performance obligations totaled $4,867.4 million, with approximately 71% expected to be recognized within 12 months.
02—Key points
Key Highlights
- Net sales rose 7.6% to $1,560.1 million in Q1 2026 from $1,449.9 million a year earlier.
- Operating income increased 13.5% to $294.2 million; the company reports higher operating income in each segment, including contributions from 2025 and 2026 acquisitions.
- Diluted EPS was $4.85, compared with $3.99 in the first quarter of 2025; net income attributable to Teledyne rose 20.3% to $226.8 million.
- Aerospace and Defense Electronics sales grew 14.4% to $277.5 million, and its operating margin rose to 25.7% from 23.0%.
- Instrumentation operating income fell 4.6% to $88.4 million on unfavorable product mix, despite sales growth of 5.3%.
- Operating cash flow was $234.0 million, and cash rose to $521.4 million; the company repaid $450.0 million of notes due April 2026 after quarter-end.
- Remaining performance obligations totaled $4,867.4 million, with about 71% expected to convert to revenue within 12 months.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Teledyne Technologies kept $0.15.
- Revenue$1.56B100.0%
- Cost of revenue−$886.3M56.8%
- Gross profit$673.8M43.2%
- Operating costs−$379.6M24.3%
- Operating income$294.2M18.9%
- Interest, other & tax−$67.4M4.3%
- Net income$226.8M14.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 24, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.56B$1.45B | +7.6% |
| Cost of Revenue | $886.30M$830.40M | +6.7% |
| Gross Profit | $673.80M$619.50M | +8.8% |
| R&D Expenses | $84.60M$74.30M | +13.9% |
| SG&A Expenses | $237.40M$233.90M | +1.5% |
| Operating Expenses | $1.27B$1.19B | +6.3% |
| Operating Income | $294.20M$259.30M | +13.5% |
| Net Income | $226.80M$188.60M | +20.3% |
| EPS (Basic) | $4.90$4.03 | +21.6% |
| EPS (Diluted) | $4.85$3.99 | +21.6% |
| Shares Outstanding (Basic) | 46.30M46.80M | −1.1% |
| Shares Outstanding (Diluted) | 46.80M47.30M | −1.1% |
05—Questions
Frequently Asked Questions
What drove the growth in Teledyne's first-quarter 2026 results?
Net sales increased 7.6% across most segments, led by Digital Imaging (up $59.9 million, driven by infrared imaging detectors and defense unmanned air systems) and Aerospace and Defense Electronics (up $35.0 million, driven by defense electronics). The filing attributes $33.3 million of the sales increase to recent acquisitions. Operating income rose 13.5%, with favorable product mix and higher sales as key contributors.
How is Teledyne's balance sheet and liquidity position?
Cash and cash equivalents were $521.4 million at March 29, 2026, up from $352.4 million at year-end 2025. Total debt, net was $2,476.3 million. Available borrowing capacity under the $1.2 billion credit facility was $1,165.8 million. The company repaid $450.0 million of 1.60% senior notes due April 2026 after quarter-end, primarily from cash on hand.
Did Teledyne repurchase shares or make acquisitions in the quarter?
No share repurchases were made in the first quarter of 2026, and $1.6 billion remained under the $2.0 billion authorization approved in July 2025. The company acquired DD-Scientific, a UK gas sensor maker, for approximately $53.4 million in cash, net of cash acquired, and it will be included in the Instrumentation segment.
Are there any legal or regulatory matters investors should note?
In February 2026, Teledyne FLIR LLC settled with the Bureau of Industry and Security over alleged export control compliance issues, paying a $1.0 million civil penalty. The matters largely relate to historical conduct at FLIR Systems, Inc., acquired in May 2021. Management does not believe pending matters are likely to have a material adverse effect on financial condition, though outcomes in any period could affect results of operations.
What external risks does management highlight for the business?
Management cites the dynamic trade environment, including tariffs and China's restrictions on rare earth minerals, as well as the Middle East conflict, which it says has not materially affected the company to date but has increased market volatility. It also notes that U.S. Government shutdowns can delay contract awards and payments, and that a February 2026 U.S. Supreme Court ruling invalidated certain tariffs, with the timing and amount of potential refunds uncertain.
06—Continue