Teledyne Technologies (TDY) AI Stock Analysis

• Market Cap: $29.12B
• Dividend Yield: N/A
• Average Volume (3M): 334.78K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.76
• 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: 46,950,990
• 10 Day Avg. Volume: 491,180
• 30 Day Avg. Volume: 334,784
• 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: 1.07
• Enterprise Value/Revenue: 5.11
• Enterprise Value/Gross Profit: 13.03
• Enterprise Value/Ebitda: 20.94
• 1Y Price Target: $656.33
• Price Target Upside: 5.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 23.77
• Revenue Forecast (FY): $6.39B

• Rating: 77 Outperform
• Price Target: $706.00 ▲(13.82% Upside)

TDY scores well on financial performance (strong, consistent free cash flow and improving leverage) and supportive earnings-call momentum (record results, healthy book-to-bill, and constructive 2026 guidance). The score is tempered by overbought technical conditions and a relatively high P/E valuation with no dividend yield provided.

Positive Factors

Consistent, high free cash flow generation

Sustained ~ $1.1B annual free cash flow across 2024–2025 provides durable internal funding for bolt‑on M&A, opportunistic buybacks, capex and debt reduction. Reliable cash conversion lowers external financing need and enhances strategic optionality through industry cycles.

Diversified, high‑value portfolio and strong book‑to‑bill

Broad exposure across instrumentation, digital imaging, aerospace/defense and unmanned platforms gives multiple secular growth engines and cross‑sell opportunities. A book‑to‑bill >1 indicates durable demand coverage and reduced single‑market concentration risk over the medium term.

Improving balance sheet and lower leverage

Meaningful deleveraging and equity growth increase financial flexibility for strategic investments and cushion cyclical downturns. A leverage ratio near 1.4x supports continued M&A or buybacks while keeping solvency risk low relative to peers in capital‑intensive industrials.

Negative Factors

Margin pressure from recent aerospace acquisitions

Acquisitions that carry lower immediate margins can depress consolidated profitability until synergies or pricing improvements are realized. If acquired businesses have structural margin gaps, sustained integration costs and lower ROIC could constrain long‑term margin expansion.

Revenue cyclicality and product‑line variability

Dependence on cyclical markets (chip suppliers, research funding, contract timing) and uneven performance across product lines increases forecasting risk and can lead to volatile top‑line and utilization. This structural variability stresses operating leverage and planning over 2–6 months.

Rising capital intensity and heavy M&A spend

Elevated M&A and rising capex/D&A increase the need to generate higher incremental returns; integration demands and upfront investment can depress near‑term ROIC. Sustaining disciplined allocation is critical to avoid long‑term margin dilution and capital inefficiency.

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 fundamentals supported by multi-year revenue expansion, solid profitability, and consistently robust free cash flow (~$1.1B in both 2024 and 2025). Balance sheet flexibility has improved as leverage trended down meaningfully, though recent top-line growth has moderated and profitability/cash flow show some cyclicality and past volatility.

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	1.50B	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: 620.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 620.3 is above the 20-day moving average (MA) of 576.67, above the 50-day MA of 535.46, and above the 200-day MA of 527.84, indicating a bullish trend. The MACD of 26.48 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 86.90 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	$29.12B	32.82	8.92%	―	7.41%	-12.85%
KEYS	77 Outperform	$37.10B	44.29	15.82%	―	7.95%	39.54%
FLEX	74 Outperform	$23.31B	27.82	17.45%	―	0.77%	0.51%
TRMB	74 Outperform	$16.08B	45.97	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$16.77B	30.31	7.79%	0.43%	-8.96%	-30.29%
COHR	66 Neutral	$33.34B	305.78	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Teledyne Technologies Corporate Events

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.