01—Abstract
Summary
Summary of the 10-Q filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported third-quarter 2026 net sales of $1,684.9 milliona, up 9.4% from $1,539.5 million a year earlier, and net income attributable to Teledyne of $272.8 million, up 23.6%.
Diluted earnings per share were $5.82b versus $4.65. For the first nine months of 2026, net sales were $4,907.5 million (up 9.0%), operating income was $974.6 million (up 18.8%), and diluted EPS was $16.02 versus $13.06. Digital Imaging drove much of the growth, with third-quarter segment operating income up 48.1%, and the company noted tariff refunds recorded in the second quarter of 2026 that benefited that segment's results.
The balance sheet strengthened over the period. Cash and cash equivalents rose to $562.4 millionc from $352.4 million at December 28, 2025, and total debt, net fell to $2,027.8 million from $2,475.4 million after the company repaid $450.0 million of 1.60% senior notes due April 2026. Operating cash flow for the nine months was $901.7 million, and the company repurchased shares for $94.8 million in the third quarter, with $1.5 billion remaining under its $2.0 billion authorization.
Subsequent to quarter end, it repurchased additional shares for $139.0 milliond. The key pending event is the agreement announced August 10, 2026 to acquire Varex Imaging Corporation in a cash transaction valued at approximately $1.1 billion, expected to close in early 2027 subject to regulatory and Varex stockholder approvals.
The company plans to fund it from cash on hand and its credit facility, and Varex will be included in the Digital Imaging segment. The filing also discloses a February 2026 settlement with the Bureau of Industry and Security involving a $1.0 million civil penalty related to export control matters.
02—Key points
Key Highlights
- Third-quarter 2026 net sales were $1,684.9 million, up 9.4%, with higher sales in every segment; Digital Imaging sales rose 15.0% to $903.0 million.
- Third-quarter net income attributable to Teledyne was $272.8 million, up 23.6%, and diluted EPS was $5.82 versus $4.65 a year earlier.
- Nine-month operating income was $974.6 million, up 18.8%, and operating margin benefited from favorable changes in contract estimates of $31.0 million.
- Cash and cash equivalents increased to $562.4 million, and total debt, net declined to $2,027.8 million after repaying $450.0 million of senior notes in the second quarter.
- Pending acquisition of Varex Imaging Corporation for approximately $1.1 billion in cash, expected to close in early 2027 and funded from cash on hand and the credit facility.
- Share repurchases totaled $94.8 million in the third quarter, with $1.5 billion remaining under the $2.0 billion authorization; a further $139.0 million was repurchased after quarter end.
- Remaining performance obligations were $5,514.4 million, with approximately 72% expected to be recognized within the next 12 months.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Teledyne Technologies kept $0.16.
- Revenue$1.68B100.0%
- Cost of revenue−$945.5M56.1%
- Gross profit$739.4M43.9%
- Operating costs−$392.2M23.3%
- Operating income$347.2M20.6%
- Interest, other & tax−$74.4M4.4%
- Net income$272.8M16.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 23, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.68B$1.54B | +9.4% |
| Cost of Revenue | $945.50M$880.00M | +7.4% |
| Gross Profit | $739.40M$659.50M | +12.1% |
| R&D Expenses | $78.60M$83.40M | −5.8% |
| SG&A Expenses | $258.40M$238.20M | +8.5% |
| Operating Expenses | $1.34B$1.26B | +6.4% |
| Operating Income | $347.20M$282.80M | +22.8% |
| Net Income | $272.80M$220.70M | +23.6% |
| EPS (Basic) | $5.89$4.71 | +25.1% |
| EPS (Diluted) | $5.82$4.65 | +25.2% |
| Shares Outstanding (Basic) | 46.30M46.90M | −1.3% |
| Shares Outstanding (Diluted) | 46.90M47.50M | −1.3% |
05—Questions
Frequently Asked Questions
What drove the increase in Teledyne's third-quarter 2026 results?
Net sales rose 9.4% to $1,684.9 million, with higher sales in each segment. Digital Imaging was the main driver, with segment operating income up 48.1% to $182.7 million on higher net sales and favorable product mix. Acquisitions contributed $11.7 million of incremental third-quarter sales.
How is Teledyne funding the pending Varex acquisition?
The company plans to fund the Varex acquisition, valued at approximately $1.1 billion, from cash on hand as well as available borrowings under its credit facility. The transaction is expected to close in early 2027, subject to customary conditions including regulatory approvals and approval by Varex's stockholders.
How did the company's debt and liquidity change in 2026?
Total debt, net decreased to $2,027.8 million at September 27, 2026 from $2,475.4 million at December 28, 2025, after the company repaid $450.0 million of 1.60% senior notes due April 2026. Cash and cash equivalents increased to $562.4 million, and $1,158.4 million was available under the $1.2 billion credit facility.
Did the tariff situation affect Teledyne's results?
The filing states that the U.S. Supreme Court invalidated IEEPA tariffs in February 2026, and Teledyne received substantially all of its IEEPA refunds by the end of the third quarter of 2026. The company continues to pay tariffs as required. Digital Imaging's first nine months results benefited from tariff refunds primarily recorded in the second quarter of 2026.
What legal or regulatory matters are disclosed?
In February 2026, Teledyne FLIR LLC and certain legacy affiliates settled with the Bureau of Industry and Security over alleged export control compliance issues and paid a civil penalty of $1.0 million. Management stated that the settlement amount reflects voluntary disclosure and cooperation. The company also has ongoing voluntary disclosures of potential trade compliance violations that could result in material fines if unfavorable.
06—Continue