Teledyne Technologies (TDY)
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$610.65+0.46%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Teledyne grows earnings steadily with raised 2026 EPS guidance near $24. Digital Imaging sales rose 7.9% in Q1 to $816.9 million. Debt reduction efforts lowered net debt by $168 million in Q1. Profit margins and cash flow remain solid in a stable market.
Growth could slow below analyst expectations of 5.7% revenue growth. Margin pressure or weaker demand in key segments may hurt earnings. Rising debt or failure to reduce leverage could strain finances.
The price is about 8% above our fair value near $604 and 11% below the Street median target of $682. Analysts expect roughly 6% revenue growth, which aligns with management's raised EPS guidance. Our view is slightly more conservative than the Street.
Breaks if: Digital Imaging revenue growth falls below 3% YoY
Breaks if: EPS falls below $23.0 in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth in its Digital Imaging segment. The current thesis state is intact, supported by strong financial results and management's commitment to increasing earnings guidance.
Valuation is considered cheap compared to peers, with a slight expectations gap. The market seems to be pricing in a stable outlook, but there is some fragility due to weak execution quality.
Fundamentals are likely to remain strong, driven by consistent revenue growth and management's focus on reducing debt. However, there is a moderate risk of missing earnings expectations, given the recent trend of earnings surprises trending down.
The thesis hinges on management's ability to maintain earnings guidance and the performance of key sector peers. Additionally, changes in interest rates could significantly impact the stock's performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports increased earnings per share guidance for 2026. The acquisition of Varex Imaging enhances growth potential in the Digital Imaging segment.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims to increase the non-GAAP EPS guidance for the full year 2026.
Breaks if: Net debt rises above $2.2 billion
In the 1-3 year view, TDY appears to be on a solid path, but investors should monitor for any changes in guidance or sector momentum. Not investment advice.