DailyIQ
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Sector:IndustrialsAll sectors
Last updated 6 minutes ago

TDG·TransDigm Group Incorporated

$.
-. (-.%)
After Hours
High
$1,298.72
Open
$1,288.82
Market Cap
72.23B
52W High
$1,623.83
Low
$1,280.50
P. Close
$1,292.01
P/E
34.69
52W Low
$1,123.61
Fwd P/E
27.51
DailyIQ Est.
$1567.91
Technical Score (1D)
64
BUY
News Sentiment
79
BULLISH
Analysts have upgraded TDG’s FY2026 net sales and GAAP EPS guidance after the company’s consistent earnings beats, pushing its fair value to roughly $1,525 from the current $1,330. The upgrade reflects a 13 % undervaluation narrative that could attract new buyers over the next week as investors reassess the upside. The valuation lift is driven by the firm’s high‑margin aerospace component business and recurring aftermarket revenue, which analysts say will continue to support earnings momentum. Recent acquisitions have temporarily compressed margins, but the company’s EBITDA and free cash flow are still projected to rise, mitigating short‑term margin pressure. Insider selling has been a concern, yet the focus has shifted to earnings trajectory, suggesting management confidence remains intact. Over the next 1–10 trading days, the market will likely weigh the upgraded guidance against the margin compression from acquisitions. Traders should watch the upcoming earnings announcement for any revisions to the FY2026 outlook and the impact of acquisition costs on profitability. Additionally, monitoring insider trading activity will help gauge whether management’s confidence aligns with the optimistic earnings narrative. Finally, any change in the company’s high‑margin aerospace demand or aftermarket sales could quickly alter the valuation assessment.
Earnings Summary
TransDigm Group Incorporated (TDG) is a global manufacturer of highly engineered aerospace components, serving commercial and defense markets through its Power & Control and Airframe segments. The company’s focus on proprietary, high‑margin parts positions it firmly within the aerospace & defense supply chain, benefiting from long‑term industry growth. In the most recent quarters, TDG reported Q4 2024 EPS of $7.83 versus an estimate of $7.74 and revenue of $2.006 B, a 7.5% increase from Q1 2025’s $2.15 B. Q1 2025 EPS rose to $9.11 against $8.95, while Q2 2025 EPS dipped to $9.60 below the $9.90 estimate, though revenue still climbed to $2.237 B. Q3 2025 saw a strong EPS of $10.82 beating the $10.05 estimate and revenue of $2.437 B, followed by Q2 2026 EPS of $9.85 versus $9.96 and revenue of $2.544 B, indicating a modest 4.3% rise from Q3 2025. Across these periods, TDG has delivered EPS beats in three of five quarters with actual data, while revenue growth has remained consistently upward, averaging around 4–8% per quarter. Historically, the company has maintained a pattern of high‑margin earnings and recurring aftermarket revenue, with analysts noting a 12% projected revenue growth for FY2026 and upgrades to its guidance after consistent beats. Recent analyst upgrades and a 13% undervaluation narrative highlight confidence in the firm’s earnings trajectory, though acquisition‑related margin compression remains a short‑term concern. Investors should watch the upcoming earnings release for any revisions to FY2026 outlook, the impact of acquisition costs on profitability, and insider trading activity that may signal management confidence. Key will be how the company balances margin recovery with continued revenue momentum amid defense spending trends.

EPS

EstBeatMiss
$7.28$8.28$9.28$10.28$11.28Q4'24Q1'25Q2'25Q3'25Q2'26Q1'26
QtrEstActual+/−
Q1'26$8.12 - -
Q2'26$9.96$9.85-1.1%
Q3'25$10.05$10.82+7.6%
Q2'25$9.90$9.60-3.0%
Q1'25$8.95$9.11+1.8%
Q4'24$7.74$7.83+1.1%

Revenue

EstBeatMiss
$1.9B$2.1B$2.3B$2.5B$2.7BQ4'24Q1'25Q2'25Q3'25Q2'26Q1'26
QtrEstActual+/−
Q1'26$2.3B - -
Q2'26$2.6B$2.5B-2.3%
Q3'25 - $2.4B -
Q2'25 - $2.2B -
Q1'25 - $2.1B -
Q4'24 - $2.0B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

TDG Stock Snapshot

TDG is currently trading at $1295.00, giving TransDigm Group Incorporated a market cap of 72.23B and a P/E ratio of 34.7. Today's range spans $1280.50–$1298.72, with shares opening at $1288.82 and moving up $2.99 (0.2%) from the prior close. DailyIQ's technical score sits at 64/100 (HOLD) with a news sentiment reading of 79/100.

Over the past year TDG has traded between $1123.61 and $1623.83 - the current price is +15.3% off the 52-week low and -20.3% from the high. 28 analysts cover the stock with a Buy consensus and a mean 12-month target of $1525.70 (range $1200.00–$1937.00), implying upside of +17.8%.

TDG sits at $1295.00 (in the lower half of its 52-week range) with a HOLD technical read (64/100) and bullish sentiment (79/100). The 72.23B market cap in Industrials (P/E: 34.7) makes this a name that institutional coverage maintains even through neutral phases - which means any catalyst shift will be quickly priced in. Annual range: $1123.61–$1623.83.

In neutral phases, large-cap Industrials names like TDG are often where sector rotation debates play out quietly — at 72.23B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 64/100 (HOLD) and bullish sentiment (79/100) at $1295.00 (in the lower half of its 52-week range) describe a stock that is being considered rather than avoided.