Teledyne Technologies (TDY) AI Stock Analysis

• Market Cap: $31.89B
• Dividend Yield: N/A
• Average Volume (3M): 393.82K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 0.75
• Revenue Growth: 7.41%
• EPS Growth: -12.85%
• Country: US
• Employees: 14,900
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 6.30
• Shares Outstanding: 46,305,310
• 10 Day Avg. Volume: 270,472
• 30 Day Avg. Volume: 393,824
• PEG Ratio: 3.29
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 4.00
• P/FCF Ratio: 22.79
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.63
• Enterprise Value/Gross Profit: 14.37
• Enterprise Value/Ebitda: 23.07
• 1Y Price Target: $689.13
• Price Target Upside: 0.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 23.79
• Revenue Forecast (FY): $6.38B

• Rating: 77 Outperform
• Price Target: $769.00 ▲(11.68% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

TDY scores well primarily on strong financial performance (profitability, improving leverage, and robust free cash flow) and a clearly positive technical trend with strong momentum. The main offset is valuation, with a high P/E and no dividend yield provided, plus some near-term execution/margin headwinds highlighted on the earnings call.

Positive Factors

Consistent Free Cash Flow

Sustained ~ $1.1B annual free cash flow provides durable internal funding for M&A, buybacks, capex and debt reduction. This cash generation underpins capital allocation flexibility, reduces reliance on external financing, and supports resilience across cycles, strengthening long-term strategic optionality.

Improving Leverage & Strong Balance Sheet

Material deleveraging and rising equity create financial headroom to pursue strategic deals and absorb shocks. Lower leverage reduces interest exposure, improves credit flexibility and enhances ability to invest organically or via bolt-ons without materially increasing financial risk over the medium term.

Diversified, Growing End-Markets (Unmanned & Defense)

Meaningful exposure to unmanned systems and increasing aerospace & defense awards give structural tailwinds. Recurring defense contracts, space-based detector awards and growing unmanned sales diversify revenue, support higher-margin product mixes and reduce single-market concentration over the medium term.

Negative Factors

Moderating Organic Revenue Growth

After multi-year expansion, near-flat and only modest recent growth suggest organic momentum has cooled. Slower top-line trends limit operating leverage and margin expansion potential, increasing dependence on acquisitions and efficiency gains to sustain net income and EPS growth over the next several quarters.

Margin Pressure from Recent Acquisitions

Acquired businesses with lower margins have compressed consolidated profitability in the near term. Integration and margin uplift may take multiple quarters, and persistent lower margins at acquisitions could dilute overall returns and slow improvement in operating margin sustainability.

End‑market Cyclicality (Semiconductor/Test Demand)

Revenue for test-and-measurement products is sensitive to semiconductor supplier cycles and timing. Dependence on chip industry investment schedules can produce durable periodic volatility in orders, revenue and cash flow, making short-to-medium-term visibility and planning more challenging for these subsegments.

Teledyne Technologies Business Overview & Revenue Model

Company Description

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company markets and sells its products and services through a direct internal sales force, as well as third-party sales representatives and distributors. Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

How the Company Makes Money

Teledyne Technologies generates revenue through several key streams. The primary source of income comes from the sale of advanced instrumentation and imaging products, which are used in various industries including aerospace, defense, and environmental monitoring. The company also earns revenue from providing integrated solutions and services, such as software for data analysis and management. Additionally, Teledyne's partnerships with governmental agencies and private sector clients contribute significantly to its earnings, particularly in defense contracts and research collaborations. The company benefits from long-term contracts and recurring revenue from maintenance and support services, which provide stability and predictability in its financial performance.

Teledyne Technologies Financial Statement Overview

Summary

Strong overall financial quality supported by sizable multi-year revenue expansion, solid profitability, improving leverage (debt-to-equity down materially since 2021–2022), and consistently strong free cash flow (~$1.1B in both 2024 and 2025). Key watch items are moderating top-line growth and some earnings/cash-flow variability across cycles.

Income Statement

Revenue has expanded materially from 2020 to 2025 (about $3.1B to $6.1B), showing a strong multi-year growth trajectory, though growth has moderated recently (near-flat in 2024 and modest in 2025). Profitability is solid and generally improving versus earlier years, with 2024 showing healthy gross and operating profitability and a strong net margin for an industrial hardware business. A watch item is some year-to-year variability in profits (e.g., net income dipped in 2024 vs. 2023 before rebounding in 2025), suggesting earnings can be somewhat mix- or cycle-sensitive.

Balance Sheet

The balance sheet looks healthy with equity building steadily (roughly $3.2B in 2020 to $10.5B in 2025) and leverage trending down meaningfully since 2021–2022 as total debt declines. Debt levels appear manageable relative to the equity base (2024 debt-to-equity was ~0.29, down from ~0.54 in 2021), which improves financial flexibility. The main caution is that assets have grown alongside the business, so continued discipline on returns will matter; recent return on equity has been solid but not exceptional (mid-to-high single digits in 2023–2024).

Cash Flow

Cash generation is a key strength: operating cash flow has been strong and consistent recently (about $1.19B in both 2024 and 2025) with robust free cash flow (about $1.11B in 2024 and $1.07B in 2025). Cash conversion is healthy, with free cash flow running close to reported earnings in 2023–2024, supporting quality of earnings. The primary weakness is volatility earlier in the period (notably weaker cash flow in 2022 vs. 2021, and negative free-cash-flow growth in 2022), though the recovery in 2023–2025 reduces concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.12B	5.67B	5.64B	5.46B	4.61B
Gross Profit	2.40B	2.43B	2.44B	2.33B	1.84B
EBITDA	1.49B	1.31B	1.35B	1.33B	996.40M
Net Income	894.80M	819.20M	885.70M	788.60M	445.30M
Balance Sheet
Total Assets	15.29B	14.20B	14.53B	14.35B	14.45B
Cash, Cash Equivalents and Short-Term Investments	352.40M	649.80M	648.30M	638.10M	474.70M
Total Debt	2.48B	2.79B	3.24B	3.92B	4.10B
Total Liabilities	4.77B	4.65B	5.30B	6.18B	6.81B
Stockholders Equity	10.51B	9.55B	9.22B	8.17B	7.62B
Cash Flow
Free Cash Flow	1.07B	1.11B	721.20M	394.20M	723.00M
Operating Cash Flow	1.19B	1.19B	836.10M	486.80M	824.60M
Investing Cash Flow	-937.90M	-207.20M	-190.30M	-175.40M	-3.82B
Financing Cash Flow	-555.20M	-945.80M	-651.50M	-110.00M	2.81B

Teledyne Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 688.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDY, the sentiment is Positive. The current price of 688.59 is above the 20-day moving average (MA) of 658.62, above the 50-day MA of 596.86, and above the 200-day MA of 546.70, indicating a bullish trend. The MACD of 23.83 indicates Positive momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 80.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDY.

Teledyne Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	77 Outperform	$31.89B	36.43	8.92%	―	7.41%	-12.85%
KEYS	73 Outperform	$53.73B	56.51	16.82%	―	7.95%	39.54%
FLEX	72 Outperform	$24.08B	29.32	16.85%	―	0.77%	0.51%
COHR	69 Neutral	$56.04B	295.83	3.63%	―	20.80%	―
FTV	67 Neutral	$18.03B	34.20	7.78%	0.43%	-8.96%	-30.29%
TRMB	63 Neutral	$16.00B	38.87	7.32%	―	-0.86%	-75.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Teledyne Technologies Corporate Events

Teledyne Technologies Modifies SOFR Terms on Credit Facility

Teledyne Technologies Incorporated, party to a Second Amended and Restated Credit Agreement dated June 10, 2024, has amended its syndicated credit facility with Bank of America, N.A. serving as administrative agent and other lenders. On February 25, 2026, the company and its lending group executed a First Amendment that removes the 0.10% Secured Overnight Financing Rate adjustment and deletes all related SOFR adjustment references from the agreement, subtly altering the pricing mechanics on its revolving credit borrowings.

This change marginally improves the economics of Teledyne’s access to floating-rate funding and simplifies the rate structure under its primary credit facility. The adjustment may reduce interest expense on future SOFR-based borrowings and reflects ongoing market and documentation evolution in how corporate credit agreements reference benchmark interest rates.

The most recent analyst rating on (TDY) stock is a Hold with a $748.00 price target. To see the full list of analyst forecasts on Teledyne Technologies stock, see the TDY Stock Forecast page.

Teledyne Proposes Bylaw Changes Expanding Shareholder Meeting Rights

On December 16, 2025, Teledyne’s board of directors approved a revised Sixth Amended and Restated Bylaws to allow shareholders who collectively hold at least 25% of the company’s outstanding voting power to compel the calling of a special meeting. The change, which would expand shareholder rights in convening special meetings, will only take effect if investors approve a corresponding amendment to Teledyne’s Restated Certificate of Incorporation at the 2026 annual shareholder meeting; until then, the existing bylaws remain in force, leaving the company’s current governance framework unchanged in the interim.

The most recent analyst rating on (TDY) stock is a Hold with a $567.00 price target. To see the full list of analyst forecasts on Teledyne Technologies stock, see the TDY Stock Forecast page.