TransDigm Shares Fall 4% as FY2027 Earnings Outlook Misses Estimates Despite Q4 Revenue Growth

TransDigm Group Incorporated (NYSE:TDG) reported fourth-quarter adjusted earnings of $12.44 per share, exceeding analysts’ expectations of $12.22, while revenue increased 23% year-on-year to $2.99 billion, above the consensus estimate of $2.95 billion. Shares of the aerospace components manufacturer declined 4% in premarket trading on Tuesday after its fiscal 2027 earnings guidance fell below market forecasts.

The company projected adjusted earnings per share of $47.09 to $47.94 for fiscal 2027, representing a midpoint of approximately $47.52, compared with analysts’ consensus estimate of $48.66.

Fourth-Quarter Revenue Rises 23%

TransDigm generated revenue of $2.99 billion for the quarter ended September 30, 2026, compared with $2.44 billion in the corresponding period of the previous year.

Adjusted earnings per share of $12.44 exceeded analysts’ forecasts by $0.22.

EBITDA As Defined increased 20% to $1.58 billion from $1.32 billion a year earlier.

Chief Executive Officer Mike Lisman commented on the results:

“We are pleased with our team’s performance and the overall operating results for both the fourth quarter and the full fiscal year. Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined.”

Fiscal 2027 Revenue Guidance Exceeds Consensus

For fiscal 2027, TransDigm expects revenue between $11.95 billion and $12.15 billion, with a midpoint of $12.05 billion, exceeding the analyst consensus of $11.75 billion.

However, its adjusted earnings guidance of $47.09 to $47.94 per share was below Wall Street’s forecast of $48.66 at the midpoint.

The company also projected EBITDA As Defined of $6.20 billion to $6.35 billion, representing an anticipated increase of 13% at the midpoint.

The outlook indicates expectations for revenue and EBITDA growth during fiscal 2027, although projected adjusted earnings per share remain below analysts’ estimates.

TransDigm Deploys More Than $7 Billion in Fiscal 2026

TransDigm reported capital deployment exceeding $7 billion during fiscal 2026.

This included approximately $4.4 billion allocated to acquisitions and a record $2.8 billion spent on share repurchases.

The investments formed part of the company’s capital allocation activities during the financial year.

Despite fourth-quarter earnings and revenue exceeding expectations, TransDigm’s fiscal 2027 adjusted earnings guidance fell short of consensus forecasts, coinciding with a 4% decline in its shares during premarket trading.

TransDigm Group stock price