Teledyne Technologies reported third-quarter 2026 net sales of $1.685 billion, up 9.4% from $1.540 billion a year earlier, as the company posted record quarterly sales, operating profit and earnings per share.
Net income attributable to Teledyne rose to $272.8 million, or $5.82 a diluted share, from $220.7 million, or $4.65 a share, in the third quarter of 2025. Operating margin widened to 20.6% from 18.4%.
On an adjusted basis, net income was $315.1 million, or $6.72 a share, compared with $264.5 million, or $5.57 a share last year. Adjusted operating margin increased to 23.9% from 22.1%.
Cash from operations totaled $352.5 million, up from $343.1 million, while free cash flow increased to $319.5 million from $313.9 million. Capital expenditures rose to $33.0 million from $29.2 million.
By segment, digital imaging delivered the biggest gain, with sales climbing 15.0% to $903.0 million from $785.4 million and operating income jumping 48.1% to $182.7 million from $123.4 million. Adjusted operating income in the segment rose 34.9% to $229.6 million from $170.2 million.
Instrumentation sales increased 1.9% to $370.5 million from $363.6 million, while operating income edged up 0.8% to $99.6 million from $98.8 million.
Aerospace and defense electronics sales rose 4.3% to $287.4 million from $275.5 million, and operating income increased 10.5% to $77.8 million from $70.4 million.
Engineered systems sales increased 7.8% to $124.0 million from $115.0 million, with operating income up 6.6% to $13.0 million from $12.2 million.
Teledyne ended the quarter with net debt of $1.465 billion, down from $2.123 billion at the end of 2025. Cash and cash equivalents increased to $562.4 million from $352.4 million, while total debt fell to $2.028 billion from $2.475 billion.
The company repurchased approximately 0.2 million shares for $94.8 million during the quarter, and stock repurchases in September through October 19 totaled $224.6 million at a weighted average price of $607.03 a share.
Teledyne also raised its full-year 2026 earnings outlook. It now sees GAAP diluted EPS at $21.71 to $21.87, up from the prior range of $20.73 to $20.99, and non-GAAP diluted EPS at $25.40 to $25.50, up from $24.45 to $24.65.
For the fourth quarter, the company guided to GAAP diluted EPS of $5.68 to $5.83 and non-GAAP diluted EPS of $6.60 to $6.70. The market has reacted to these announcements by moving the company's shares 2.01% to a price of $632.21. If you want to know more, read the company's complete 8-K report here.
