Teledyne's Q3 Earnings & Revenues Beat Estimates, Increase Y/Y

Teledyne Technologies Inc. TDY reported third-quarter 2025 adjusted earnings of $5.57 per share, which surpassed the Zacks Consensus Estimate of $5.50 by 1.3%. The bottom line also improved 7.8% from $5.10 recorded in the year-ago quarter.

Including one-time items, the company recorded GAAP earnings of $4.65 per share, up 16.1% from the prior-year period’s earnings of $5.54 per share.

The year-over-year decline in the bottom line can be attributed to higher cost of sales, selling, general and administrative expenses, as well as, research and development expenses in the third quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDY

Total sales were $1.54 billion, which beat the Zacks Consensus Estimate of $1.52 billion by 1%. The top line also surged 6.7% from $1.44 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in the majority of its business segments.

Teledyne Technologies Incorporated Price, Consensus and EPS Surprise

Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote

TDY’s Segmental Performance

Instrumentation: Sales in this segment increased 3.9% year over year to $363.6 million, driven by higher sales of environmental instrumentation, marine instrumentation and electronic test and measurement instrumentation.

The adjusted operating income rose 2.3% year over year to $102.1 million.

Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $785.4 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems and industrial automation imaging systems.

The adjusted operating income declined 2% year over year to $170.2 million.

Aerospace and Defense Electronics: Sales in this segment totaled $275.5 million, up 37.6% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.

The adjusted operating income increased 36.8% year over year to $77.3 million.

Engineered Systems: Revenues in this division fell 8.1% year over year to $115 million due to lower sales of engineered products and energy systems.

This segment's operating income decreased 5.4% to $12.2 million.

Financial Condition of TDY

Teledyne’s cash and cash equivalents totaled $528.6 million as of Sept. 28, 2025, compared with $649.8 million as of Dec. 29, 2024.

Its long-term debt was $2.08 billion at the end of the third quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.

Cash flow from operating activities totaled $343.1 million for the third quarter compared with $249.8 million in the prior-year period.

TDY generated free cash flow of $313.9 million, up from $228.7 million in the prior-year quarter.

TDY’s Guidance

Teledyne expects to generate adjusted earnings in the band of $5.73-$5.88 per share for the fourth quarter of 2025. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.90 per share, higher than the company's guided range.

For 2025, Teledyne expects its adjusted earnings to be in the range of $21.45-$21.60 per share. The Zacks Consensus Estimate for earnings is pegged at $21.48 per share, which lies below the midpoint of the company’s guided range.

TDY’s Zacks Rank

Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation’s RTX third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.

RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.

Lockheed Martin Corporation LMT reported third-quarter 2025 adjusted earnings of $6.95 per share, which beat the Zacks Consensus Estimate of $6.33 by 9.8%. The bottom line increased 2.2% from the year-ago quarter's reported figure of $6.80.

Net sales were $18.61 billion, which beat the Zacks Consensus Estimate of $18.56 billion by 0.3%. The top line also inched up 8.8% from $17.10 billion reported in the year-ago quarter.

Northrop Grumman Corporation NOC reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7.00 registered in the prior-year quarter.

NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.

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