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# Teledyne Raises 2026 Profit Outlook To $25.40–$25.50 A Share After $1.68 Billion Third Quarter
- URL: https://www.bullished.co/teledyne-raises-2026-profit-outlook-to-25-40-25-50-a-share-after-1-68-billion-third-c27a03fb/
- Published: 2026-10-21T11:21:31.000Z
- Updated: 2026-10-21T11:21:31.000Z
- Description: Teledyne called the quarter its strongest ever, with Digital Imaging operating income up 48.1%, and it still plans to buy Varex.
- Author: Matteo Parrino
- Tags: Deals, TDY, Industry: Industrials

[Teledyne](https://www.bullished.co/tag/tdy/) raised its 2026 adjusted earnings outlook to [$25.40 to $25.50 per share](https://www.sec.gov/Archives/edgar/data/0001094285/000109428526000055/q3-2026earningsrelease.htm?ref=bullished.co), from $24.45 to $24.65, in its third-quarter earnings release furnished with an [8-K](https://www.sec.gov/Archives/edgar/data/0001094285/000109428526000055/tdy-20261021.htm?ref=bullished.co) on Wednesday. The company called the quarter an all-time record for sales, operating profit and adjusted earnings per share.

## What the release says

Net sales were $1,684.9 million, up 9.4% from $1,539.5 million a year earlier. Recent acquisitions added $11.7 million of that.

Earnings were $5.82 per share on standard accounting, up 25.2%. Adjusted earnings, which exclude acquisition-related items, were $6.72 per share, up 20.6%.

Operating margin was 20.6%, against 18.4% a year earlier. On the adjusted measure it was 23.9%, against 22.1%.

Cash from operations was $352.5 million and free cash flow was $319.5 million. Net debt stood at $1,465.4 million as of September 27, down from $2,123.0 million at the end of 2025.

"Our third quarter sales and operating earnings were the strongest in Teledyne's history," Executive Chairman Robert Mehrabian said.

## Imaging carries the quarter

Digital Imaging sales rose 15.0% to $903.0 million. Higher sales of infrared detectors, components and subsystems for defense and commercial uses drove the increase, the company said. Mehrabian pointed to detectors and subsystems for space and unmanned applications.

Segment operating income climbed 48.1% to $182.7 million. The company attributed that mainly to higher sales and a favorable product mix.

The other segments grew more slowly: Instrumentation sales rose 1.9% to $370.5 million, Aerospace and Defense Electronics rose 4.3% to $287.4 million, and Engineered Systems rose 7.8% to $124.0 million.

## Outlook, buybacks and the Varex deal

The full-year standard-accounting range rose to $21.71 to $21.87 from $20.73 to $20.99\. For the fourth quarter, Teledyne guided adjusted earnings of $6.60 to $6.70 per share.

Mehrabian said orders have exceeded sales every quarter for three years and that funded backlog is now nearly $5.3 billion. Buybacks in September through October 19 totaled $224.6 million at a weighted average price of $607.03 per share.

On August 10 Teledyne agreed to buy Varex Imaging in an all-cash deal valued at about $1.1 billion, to be paid from cash and credit-facility borrowings. Before signing, it had bought about 1.3 million Varex shares for $13.9 million, and it booked a $10.6 million gain on them this quarter. Varex would join Digital Imaging.

## What to watch

Varex stockholders hold a special meeting on October 28\. Teledyne expects the deal to close in early 2027, subject to regulatory approvals and that stockholder vote.

Teledyne's stock closed at $632.21 on Tuesday, before the results came out.

### Sources

- [8-K Filing — TELEDYNE TECHNOLOGIES INC (TDY)](https://www.sec.gov/Archives/edgar/data/0001094285/000109428526000055/tdy-20261021.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit q3-2026earningsrelease.htm — TELEDYNE TECHNOLOGIES INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001094285/000109428526000055/q3-2026earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [Teledyne: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/teledyne-q3-earnings-snapshot-110256312.html?ref=bullished.co) — Associated Press
- [Teledyne: Q3 Earnings Snapshot | wusa9.com](https://www.wusa9.com/article/syndication/associatedpress/teledyne-q3-earnings-snapshot/616-1aec7ce9-d999-4361-b5b8-857abf141a22?ref=bullished.co) — Associated Press

### More on Teledyne Technologies

- [Teledyne's Amended Filing Reveals $170,000 Exit Payment For Vice Chairman Jason Van Wees](https://www.bullished.co/teledynes-amended-filing-reveals-170-000-exit-payment-for-vice-chairman-jason-van-wees-314bec35/)

[All Teledyne Technologies (TDY) coverage →](https://www.bullished.co/tag/tdy/)