Teledyne's Q4 Earnings & Revenues Beat Estimates, Increase Y/Y

Teledyne Technologies Inc. TDY reported fourth-quarter 2025 adjusted earnings of $6.30 per share, which surpassed the Zacks Consensus Estimate of $5.83 by 8.1%. The bottom line also improved 14.1% from $5.52 recorded in the year-ago quarter.

Including one-time items, the company recorded GAAP earnings of $5.84 per share, up 39% from the prior-year period’s earnings of $4.20 per share.

TDY reported 2025 adjusted earnings of $21.99 per share, which surpassed the Zacks Consensus Estimate of $21.52 by 2.2%. The full-year earnings were also higher than the year-ago figure of $19.73 per share.

Operational Highlights of TDY

Total sales were $1.61 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 2.7%. The top line also surged 7.3% from $1.50 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.

The company reported sales of $6.12 billion during 2025, which surpassed the consensus estimate of $6.07 billion. The full-year sales were also higher than the reported figure of $5.67 billion in 2024.

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 3.7% year over year to $382.6 million, driven by higher sales of environmental instrumentation, primarily driven by increased sales of gas detection products.

The adjusted operating income rose 6.4% year over year to $107.3 million.

Digital Imaging: Quarterly sales in this division increased 3.4% year over year to $850.5 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, as well as unmanned air systems.

The adjusted operating income rose 79.4% year over year to $162.9 million.

Aerospace and Defense Electronics: Sales in this segment totaled $275.9 million, up 40.4% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.

The adjusted operating income increased 23% year over year to $69.4 million.

Engineered Systems: Revenues in this division fell 9.9% year over year to $103.3 million due to lower sales of engineered products and energy systems.

This segment's operating income rose 17.3% to $11.5 million.

Financial Condition of TDY

Teledyne’s cash and cash equivalents totaled $352.4 million as of Dec. 28, 2025, compared with $649.8 million as of Dec. 29, 2024.

Its long-term debt was $2.03 billion at the end of the fourth quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.

Cash flow from operating activities totaled $379 million for the fourth quarter compared with $332.4 million in the prior-year period.

TDY generated free cash flow of $339.2 million in the fourth quarter of 2025, up from $303.4 million in the prior-year quarter.

TDY’s Guidance

Teledyne expects to generate adjusted earnings in the band of $5.40-$5.50 per share for the first quarter of 2026. The Zacks Consensus Estimate for TDY’s first-quarter earnings is pegged at $5.54 per share, higher than the company's guided range.

For 2026, Teledyne expects its adjusted earnings to be in the range of $23.45-$23.85 per share. The Zacks Consensus Estimate for earnings is pegged at $23.85 per share, which lies on the upper end of the company’s guided range.

TDY’s Zacks Rank

Teledyne currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Stocks to Consider

CurtissWright CW is likely to come up with an earnings beat when it announces fourth-quarter results on Feb. 11, after market close.

The consensus estimate for CW’s fourth-quarter sales indicates an improvement of 8% from the year-ago quarter’s reported number. The company delivered an average earnings surprise of 7.75% for the trailing four quarters.

Rocket Lab RKLB is likely to come up with an earnings beat when it announces fourth-quarter results soon.

The consensus estimate for RKLB’s fourth-quarter sales indicates an improvement of 34.4% from the year-ago quarter’s reported number. The company delivered an average earnings surprise of 11.51% for the trailing four quarters.

Transdigm Group TDG is expected to come up with an earnings beat when it reports first-quarter fiscal 2026 results soon.

The consensus estimate for TDG’s first-quarter fiscal 2026 sales implies an improvement of 12.4% from the year-ago quarter’s level. The company delivered an average earnings surprise of 2.84% for the trailing four quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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