TransDigm jumps after Q2 beat and sharp FY2026 guidance raise
TransDigm shares jumped after the company posted fiscal Q2 2026 results showing net sales of $2.544 billion (+18% y/y) and adjusted EPS of $9.85. Management raised full-year fiscal 2026 guidance, lifting the sales midpoint by $420 million and adjusted EPS midpoint by $1.14.
1. What’s moving the stock
TransDigm Group (TDG) is rallying after reporting fiscal 2026 second-quarter results and boosting its full-year outlook. The company said quarterly net sales rose to $2.544 billion (up 18% year over year), with net income of $536 million and adjusted EPS of $9.85; EBITDA As Defined was $1.337 billion for a 52.6% margin.
2. Guidance raised—again
The key catalyst is a sizable fiscal 2026 guidance increase. TransDigm raised expected net sales to $10.30–$10.42 billion (up $420 million at the midpoint versus prior guidance), EBITDA As Defined to $5.37–$5.47 billion (up $210 million at the midpoint), and adjusted EPS to $38.83–$40.21 (up $1.14 at the midpoint). Management said most of the increase reflects stronger-than-expected performance in the base business, with a smaller portion from including the recently closed Jet Parts Engineering and Victor Sierra acquisitions.
3. Aftermarket strength and capital returns in focus
Management highlighted double-digit growth across its three major market channels in the quarter, with commercial aftermarket the fastest-growing and commercial transport up 16% for the period. The company also emphasized aggressive buybacks, repurchasing $723 million of shares during the quarter and an additional ~$76 million after quarter-end, bringing fiscal year-to-date repurchases to about $905 million.