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Teledyne Technologies
(NYSE:TDY)
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Rating:77Outperform
Price Target:
$783.00
▲(19.48% Upside)
Action:Reiterated
Date:08/12/26
TDY scores well on financial strength and earnings momentum, supported by raised guidance, record orders, and a large funded backlog. Technicals confirm a strong uptrend, though momentum is somewhat extended. The main offset is valuation (P/E ~33) and execution risk around supply constraints and the newly announced Varex acquisition.
Positive Factors
Strong and consistent free cash flow generation
Sustained, high free cash flow provides durable financial flexibility: funds capex, deleveraging, and M&A without diluting equity. Consistent FCF conversion (~0.90) underpins the company’s ability to invest in growth, return capital, and absorb cyclical swings over the next 2–6 months.
Negative Factors
Raw-material and supply-chain constraints
Dependence on scarce materials (germanium, rare-earths) and high scrap rates can cap production, raise unit costs, and force capital-intensive mitigation (e.g., new machine shops). These structural supply risks can restrain margin sustainability and throughput over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and consistent free cash flow generation
Sustained, high free cash flow provides durable financial flexibility: funds capex, deleveraging, and M&A without diluting equity. Consistent FCF conversion (~0.90) underpins the company’s ability to invest in growth, return capital, and absorb cyclical swings over the next 2–6 months.
Read all positive factors
Teledyne Technologies Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Profit produced by each of Teledyne’s business units, revealing which segments drive overall earnings and which are dragging margins. Helps investors see where management is most efficient, where capital and cost control are working, and which parts of the company are most exposed to cyclicality or margin pressure.
Profit produced by each of Teledyne’s business units, revealing which segments drive overall earnings and which are dragging margins. Helps investors see where management is most efficient, where capital and cost control are working, and which parts of the company are most exposed to cyclicality or margin pressure.
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The Fly
The FlyTeledyne Technologies (TDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.23B
Dividend YieldN/A
Average Volume (3M)393.72K
Price to Earnings (P/E)32.7
Beta (1Y)0.81
Revenue Growth7.70%
EPS Growth13.95%
CountryUS
Employees15,800
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)20.77
Shares Outstanding46,355,675
10 Day Avg. Volume505,055
30 Day Avg. Volume393,724
Financial Highlights & Ratios
PEG Ratio3.29
Price to Book (P/B)2.33
Price to Sales (P/S)4.00
P/FCF Ratio22.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$757.20Price Target Upside15.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)24.67
Revenue Forecast (FY)$6.54B
Teledyne Technologies Business Overview & Revenue Model
Company Description
Teledyne Technologies Incorporated develops and supplies advanced technologies primarily for industrial sectors experiencing growth, serving customers across the United States, Canada, the United Kingdom, Belgium, the Netherlands, and other intern...
How the Company Makes Money
Teledyne makes money primarily by selling engineered products, components, and systems—plus associated services—across its operating segments. Key revenue streams include: (1) Product sales of digital imaging hardware and components (e.g., industr...
Teledyne Technologies Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record orders, double-digit growth in key areas (Digital Imaging), raised full-year revenue and EPS outlook, improved cash flow and materially lower leverage. Headwinds are mostly manageable and include segment mix-related margin pressure, some transient one-time items (tariff refunds versus higher R&D and reserves), supply-chain risks for critical materials (germanium, rare-earth magnets), and conservative near-term guidance due to tough comps and macro/supply uncertainties. Overall, positives materially outweigh the negatives.Positive Updates
Record Quarterly Results
Company reported the strongest quarterly orders, sales and operating profit in its history: sales up 9.8% year-over-year and non-GAAP earnings up 20.8%. Orders have exceeded sales for the 11th consecutive quarter and funded backlog ended June at approximately $5.0 billion.
Negative Updates
Instrumentation Margin Pressure from Product Mix
Instrumentation non-GAAP operating margin decreased year-over-year primarily due to higher growth in lower-margin autonomous underwater vehicles and marine products, despite a 160 bp sequential margin improvement.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Results
Company reported the strongest quarterly orders, sales and operating profit in its history: sales up 9.8% year-over-year and non-GAAP earnings up 20.8%. Orders have exceeded sales for the 11th consecutive quarter and funded backlog ended June at approximately $5.0 billion.
Read all positive updates
Company Guidance
Management raised 2026 guidance after a strong Q2: full‑year revenue is now expected to be roughly $6.53+ billion — about $120 million higher than the April forecast, or just under 7% y/y growth — and full‑year non‑GAAP EPS was increased by $0.55 at the midpoint to $24.45–$24.65 (GAAP $20.73–$20.99). Q3 guidance is GAAP $5.10–$5.25 and non‑GAAP $6.05–$6.15. The raise was driven by Q2 results (sales +9.8%, non‑GAAP earnings +20.8%), orders/book‑to‑bill strength (book‑to‑bill ~1.23, Digital Imaging ~1.4x, orders up ~20%), and a funded backlog of about $5.0 billion; defense sales are expected to grow high single digits, short‑cycle commercial to grow mid‑single digits, unmanned business is projected to grow to roughly $575 million in 2026 (from ~$500M in 2025), and space revenue is expected to be >$400M–$450M. Additional Q2 metrics: Digital Imaging sales +12.7% (+11.9% organic) with segment margin up 353 bps to 25%; Instrumentation sales +5.5%; Aerospace & Defense +8.2%; Engineered Systems +8.4%; company cash flow from operations $315.2M and free cash flow $284.7M in Q2, capex $30.5M, D&A $85.7M, net debt ~$1.69B (debt ~$2.03B less cash ~$340M) with net leverage ~1.1 and an expected decline toward ~$1.0B by year‑end.Teledyne Technologies Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.37B | 6.12B | 5.67B | 5.64B | 5.46B | 4.61B |
| Gross Profit | 2.49B | 2.40B | 2.43B | 2.44B | 2.33B | 1.84B |
| EBITDA | 1.59B | 1.49B | 1.31B | 1.35B | 1.33B | 996.40M |
| Net Income | 974.80M | 894.80M | 819.20M | 885.70M | 788.60M | 445.30M |
Balance Sheet | ||||||
| Total Assets | 15.28B | 15.29B | 14.20B | 14.53B | 14.35B | 14.45B |
| Cash, Cash Equivalents and Short-Term Investments | 340.10M | 352.40M | 649.80M | 648.30M | 638.10M | 474.70M |
| Total Debt | 2.03B | 2.64B | 2.79B | 3.24B | 3.92B | 4.10B |
| Total Liabilities | 4.36B | 4.77B | 4.65B | 5.30B | 6.18B | 6.81B |
| Stockholders Equity | 10.92B | 10.51B | 9.55B | 9.22B | 8.17B | 7.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.07B | 1.11B | 721.20M | 394.20M | 723.00M |
| Operating Cash Flow | 1.27B | 1.19B | 1.19B | 836.10M | 486.80M | 824.60M |
| Investing Cash Flow | -224.30M | -937.90M | -207.20M | -190.30M | -175.40M | -3.82B |
| Financing Cash Flow | -1.01B | -555.20M | -945.80M | -651.50M | -110.00M | 2.81B |
Teledyne Technologies Risk Analysis
Teledyne Technologies disclosed 43 risk factors in its most recent earnings report. Teledyne Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teledyne Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $31.23B | 32.72 | 9.13% | ― | 7.70% | 13.95% | |
76 Outperform | $60.47B | 58.85 | 17.44% | ― | 19.19% | 42.75% | |
70 Neutral | $13.42B | -122.55 | -1.87% | ― | 5.80% | -140.22% | |
64 Neutral | $18.67B | 35.83 | 8.52% | 0.39% | -29.80% | -23.46% | |
63 Neutral | $45.92B | 48.71 | 18.71% | ― | 12.25% | 14.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $64.02B | 74.90 | 8.37% | ― | 22.51% | ― |
* Technology Sector Average
TDY
Teledyne Technologies
679.67
141.20
26.22%
FLEX
Flex
126.16
77.16
157.47%
COHR
Coherent Corp
325.83
232.43
248.85%
TRMB
Trimble
57.60
-24.64
-29.96%
KEYS
Keysight Technologies
357.82
194.42
118.98%
FTV
Fortive
61.62
13.67
28.52%
Teledyne Technologies Corporate Events
Business Operations and StrategyM&A Transactions
Teledyne to Acquire Varex Imaging in $1.1B Deal
Positive
Aug 10, 2026
On August 10, 2026, Teledyne Technologies and Varex Imaging announced a definitive agreement for Teledyne to acquire all outstanding Varex shares for $18.90 per share in cash, valuing the deal at about $1.1 billion including equity awards and net ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.