01—Abstract
Summary
Summary of the 10-Q filed July 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported second-quarter 2026 net sales of $1,662.5 milliona, up 9.8% from $1,513.7 million a year earlier, and net income attributable to Teledyne of $251.7 million, up 19.9% from $209.9 million.
Diluted earnings per share were $5.37b versus $4.43. Operating income rose 19.8% to $333.2 million, with the filing citing higher sales and an increase in overall operating margin. Digital Imaging was the main driver, with operating income up 42.3% to $170.2 million, helped by favorable product mix and tariff refunds, while Instrumentation operating income was roughly flat at $101.4 million.
For the first six months, net sales were $3,222.6 millionc (up 8.7%) and net income attributable to Teledyne was $478.5 million (up 20.1%), with diluted EPS of $10.20 versus $8.41. Cash flow from operations for the first six months was $549.2 million, compared with $469.2 million. The company repaid $450.0 million of its 1.60% Fixed Rate Senior Notes due April 2026, reducing total debt, net, to $2,027.0 million from $2,475.4 million at year-end 2025.
Cash and cash equivalents were $340.1 milliond, and $1,160.7 million was available under the $1.2 billion credit facility. Remaining stock repurchase authorization was $1.6 billion, and no repurchases were made in the quarter or the first six months. The filing also highlights ongoing risks: tariffs and trade restrictions with China, rare earth supply constraints, and the Middle East conflict, which the company says has not yet materially affected it.
The company received refunds of IEEPA tariffs after a February 2026 Supreme Court ruling. A settlement with the Bureau of Industry and Security involved a $1.0 million civil penalty. Goodwill stood at $8,661.9 million and acquired intangibles at $1,984.2 million, and the company is evaluating the new expense disaggregation standard, ASU 2024-03.
02—Key points
Key Highlights
- Second-quarter net sales of $1,662.5 million, up 9.8% year over year; six-month net sales of $3,222.6 million, up 8.7%.
- Second-quarter operating income of $333.2 million, up 19.8%; net income attributable to Teledyne of $251.7 million, up 19.9%.
- Diluted EPS of $5.37 for the quarter versus $4.43, and $10.20 for the six months versus $8.41.
- Digital Imaging segment operating income rose 42.3% to $170.2 million in the quarter, aided by favorable product mix and tariff refunds; Instrumentation operating income was $101.4 million, down 0.2%.
- Repaid $450.0 million of 1.60% senior notes due April 2026, reducing total debt, net, to $2,027.0 million from $2,475.4 million.
- Net cash provided by operating activities was $549.2 million for the first six months, up from $469.2 million; the company acquired DD-Scientific for $53.6 million.
- Remaining repurchase authorization of $1.6 billion, with no repurchases made in the second quarter or first six months of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Teledyne Technologies kept $0.15.
- Revenue$1.66B100.0%
- Cost of revenue−$924.4M55.6%
- Gross profit$738.1M44.4%
- Operating costs−$404.9M24.4%
- Operating income$333.2M20.0%
- Interest, other & tax−$81.5M4.9%
- Net income$251.7M15.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 24, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.66B$1.51B | +9.8% |
| Cost of Revenue | $924.40M$869.10M | +6.4% |
| Gross Profit | $738.10M$644.60M | +14.5% |
| R&D Expenses | $90.20M$82.40M | +9.5% |
| SG&A Expenses | $258.70M$229.40M | +12.8% |
| Operating Expenses | $1.33B$1.24B | +7.6% |
| Operating Income | $333.20M$278.20M | +19.8% |
| Net Income | $251.70M$209.90M | +19.9% |
| EPS (Basic) | $5.44$4.48 | +21.4% |
| EPS (Diluted) | $5.37$4.43 | +21.2% |
| Shares Outstanding (Basic) | 46.30M46.90M | −1.3% |
| Shares Outstanding (Diluted) | 46.90M47.40M | −1.1% |
05—Questions
Frequently Asked Questions
How did Teledyne perform in the second quarter of 2026?
Net sales rose 9.8% to $1,662.5 million and net income attributable to Teledyne rose 19.9% to $251.7 million. Diluted EPS was $5.37 versus $4.43. The filing attributes the earnings increase primarily to higher sales and a higher overall operating margin.
What drove the improvement in operating margin?
Cost of sales as a percentage of net sales fell to 55.6% from 57.4% in the quarter. The filing cites higher net sales and tariff refunds, primarily within Digital Imaging, along with favorable product mix in that segment.
How is Teledyne's debt position after the April 2026 note maturity?
The company repaid $450.0 million of its 1.60% Fixed Rate Senior Notes due April 2026. Total debt, net, was $2,027.0 million at June 28, 2026, versus $2,475.4 million at December 28, 2025. Cash and cash equivalents were $340.1 million, and $1,160.7 million was available under the $1.2 billion credit facility.
What risks does the filing highlight for the business?
The filing cites tariffs and trade restrictions, including with China; restrictions on rare earth minerals; the Middle East conflict, which the company says has not yet materially affected it; and U.S. Government shutdowns that could delay contract awards and payments. It states there are no material changes to the risk factors in the 2025 Form 10-K.
Did Teledyne buy back stock or make acquisitions in 2026?
No repurchases were made in the second quarter or first six months of 2026, leaving $1.6 billion available under the $2.0 billion authorization. The company spent $53.4 million on acquisitions in the first six months, mainly DD-Scientific, which is part of the Instrumentation segment.
06—Continue