TransDigm Group Past Earnings Performance
Past criteria checks 2/6
TransDigm Group has been growing earnings at an average annual rate of 26.9%, while the Aerospace & Defense industry saw earnings growing at 20.1% annually. Revenues have been growing at an average rate of 15.7% per year.
Key information
26.91%
Earnings growth rate
26.93%
EPS growth rate
| Aerospace & Defense Industry Growth | 5.38% |
| Revenue growth rate | 15.68% |
| Return on equity | n/a |
| Net Margin | 19.61% |
| Last Earnings Update | 28 Mar 2026 |
Recent past performance updates
Recent updates
Seeking Alpha • Jul 06
TransDigm: A Good Tax-Efficient Compounder For A Taxable Account
Summary TransDigm Group stands out as a tax-efficient, elite compounder with dominant aerospace component market share and a private equity-style acquisition strategy. TDG's capital allocation favors debt repayment, accretive acquisitions, and aggressive share buybacks over regular dividends, enhancing after-tax returns for taxable accounts. Despite a premium valuation, TDG trades below its five-year average P/E and offers superior margins versus peers, supported by strong pricing power and high free cash flow conversion. Management raised fiscal 2026 guidance, targeting $10.3–$10.42B in revenue and $2.5B in free cash flow, while monitoring geopolitical and inflationary risks to aftermarket demand. Read the full article on Seeking Alpha
Narrative Update • Jun 24
TDG: Aftermarket Strength And Buybacks Will Drive Future Upside Potential
TransDigm Group's analyst fair value estimate has inched up by $0.50 to $1,524.50, reflecting a blend of recent target hikes and cuts as analysts factor in updated views on discount rates, revenue growth, margins, and future price-to-earnings (P/E) assumptions. Analyst Commentary Recent Street research on TransDigm Group shows a mix of higher and lower price targets, with analysts weighing valuation, execution risk, and growth assumptions differently.Analysis Article • Jun 21
TransDigm Group (TDG) Stock Could Be 12.8% Undervalued After Q2 Results And Acquisitions
Q2 results and acquisitions put TransDigm Group (TDG) in focus TransDigm Group (TDG) is back on investors’ radar after reporting strong Q2 2026 results, raising its full year outlook, and closing a US$2.2b acquisition in the aerospace aftermarket. See our latest analysis for TransDigm Group. At a share price of US$1,328.31, TransDigm Group has seen short term momentum pick up, with a 5.75% 7 day share price return and 9.46% 30 day share price return. However, the 3 year total shareholder...Narrative Update • Jun 07
TDG: Aftermarket Cash Flows And Buybacks Will Support Future Upside
TransDigm Group's updated analyst price target has moved slightly lower to $1,524. This reflects analysts' adjustments to fair value, discount rate, growth assumptions, margins, and future P/E after recent mixed target changes across the Street.Analysis Article • May 07
Results: TransDigm Group Incorporated Exceeded Expectations And The Consensus Has Updated Its Estimates
TransDigm Group Incorporated ( NYSE:TDG ) investors will be delighted, with the company turning in some strong numbers...Narrative Update • Apr 29
TDG: Aftermarket Cash Flows And M&A Discipline Will Support Future Upside
Narrative Update The updated analyst price target for TransDigm edges lower by about $15, as analysts factor in higher required returns and slightly softer margin assumptions while keeping revenue growth and P/E expectations broadly in line. Analyst Commentary Recent Street research around TransDigm highlights a mix of caution and support, with several firms adjusting ratings and price targets in response to updated assumptions on required returns, margins, and execution risk after the latest quarterly report.Narrative Update • Apr 10
TDG: Aftermarket Cash Flows And M&A Discipline Will Drive Future Returns
Analysts have trimmed the fair value estimate for TransDigm Group to about $1,552 from roughly $1,591, reflecting a mix of reduced price targets following recent downgrades and initiations, alongside some upward revisions from firms that remain constructive on the stock. Analyst Commentary Recent research shows a split field, with some firms trimming price targets or downgrading, while others are still raising their valuation work for TransDigm Group.Narrative Update • Mar 27
TDG: Aftermarket Cash Flows And Buybacks Will Drive Future Returns
TransDigm Group's analyst price target has been adjusted slightly higher to $1,591.25, as analysts factor in updated assumptions around discount rates, revenue growth, profit margins, and future P/E multiples following a mix of recent target hikes and cuts across the Street. Analyst Commentary Recent Street research around TransDigm Group shows a split between bullish analysts lifting price targets and more cautious voices lowering targets or moving to neutral stances.Narrative Update • Dec 27
TDG: Future Returns Will Be Driven By Aftermarket Cash Flows And Buyback Capacity
The analyst derived fair value estimate for TransDigm Group has inched higher to approximately $1,586 from about $1,581, as analysts modestly raise price targets on the back of Q3 and Q4 earnings beats, resilient aftermarket profitability, and expectations for continued 20% multi year EPS growth, despite some deceleration in aftermarket growth rates and conservative forward guidance. Analyst Commentary Bullish analysts remain broadly constructive on TransDigm, highlighting continued earnings outperformance, resilient margins, and a compelling relative valuation profile even as growth normalizes from post pandemic highs.Narrative Update • Dec 13
TDG: Future Returns Will Be Driven By Aftermarket Margins And M&A Optionality
Our revised fair value estimate for TransDigm Group edges up to $1,581 from $1,578, reflecting analysts' slightly higher price targets supported by continued earnings outperformance, resilient aftermarket fundamentals, and the optionality from future large scale M&A. Analyst Commentary Street research remains broadly constructive on TransDigm, with most recent actions involving higher price targets and reaffirmed positive ratings, even where those targets have been modestly trimmed.Narrative Update • Nov 27
TDG: Multi-Year Earnings Expansion Will Rely On Margin Strength And M&A Capacity
TransDigm Group's fair value estimate has been increased by analysts to $1,577.65 from $1,557.89. This change reflects continued conviction in strong organic growth, robust earnings performance, and expectations for future margin resilience despite a mixed outlook for certain market segments.Narrative Update • Nov 05
TDG: Aftermarket Demand And Acquisition Capacity Will Drive Shares Higher
Analysts have reduced their price targets for TransDigm Group. Recent estimates have moved from a range of about $1,730 to $1,385 per share, citing factors including compressed valuation multiples, shifting after-market demand, and a more uncertain outlook for large acquisitions.Narrative Update • Oct 22
Analysts Adjust TransDigm Group Outlook Amid Aftermarket Strength and Softer OEM Demand
Analysts have revised TransDigm Group's price target lower, reducing the fair value from $1,586 to $1,558. This adjustment is attributed to factors such as softening commercial OEM demand, compressed EBITDA multiples, and a more cautious outlook on large acquisitions.Narrative Update • Oct 08
Air Travel Demand And OEM Backlogs Will Sustain Future Upside
TransDigm Group's analyst price target has been lowered slightly from approximately $1,608 to $1,586. Analysts cite concerns around compressed EBITDA multiples and reduced Commercial OEM expectations, despite ongoing acquisition capacity and robust after-market fundamentals.Analysis Article • Sep 21
TransDigm Group (NYSE:TDG) Is Investing Its Capital With Increasing Efficiency
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...Narrative Update • Sep 04
Air Travel Demand And OEM Backlogs Will Sustain Future Upside
TransDigm Group’s price target remains steady at $1621 as weaker commercial OEM sales expectations are offset by bullish confidence in ongoing aerospace and defense strength, sector tailwinds, and the company’s resilient fundamentals. Analyst Commentary Recent reduction in price target reflects lowered sales guidance due to weaker Commercial OEM end-market expectations, driven by slower build rates and inventory destocking in the supply chain.Seeking Alpha • Mar 14
TransDigm: Still A Buy Despite The Leverage And The Premium Valuation
Summary TransDigm holds a dominant market position, leveraging its pricing power to maintain high FCF margins and return capital to shareholders despite potential 2025 headwinds. 90% of its revenue comes from selling proprietary parts, ensuring FAA-certified exclusivity and pricing power. During the Q1 2025 earnings, the company showed commitment to returning capital to its shareholders with special dividend payments and share repurchases. Even though we are seeing growth in the commercial OEM segment of the business, that will be circumvented by the growth in defense spending. DOGE fears are exaggerated due to the fact that the DoD contributes less than 1% of TransDigm's revenue. Read the full article on Seeking AlphaSeeking Alpha • Jan 21
TransDigm Group: Balanced Growth Outlook But Negative Near-Term Sentiment (Rating Downgrade)
Summary I recommend a hold rating for TransDigm stock due to near-term sentiment headwinds, despite strong structural tailwinds from aftermarket demand and increasing defense budgets. TDG benefits from robust air travel demand and supply chain disruptions, driving high demand for maintenance, repair, and overhaul services. TDG's defense segment is growing, supported by rising global defense spending, but regulatory scrutiny and growth deceleration pose risks. TDG trades at a premium multiple, making it less attractive now; investors should revisit once uncertainties subside or valuation improves. Read the full article on Seeking AlphaSeeking Alpha • Nov 18
TransDigm: Expect Muted Upside With Balance Sheet And Regulatory Headwinds
Summary TransDigm's Q4'24 results show strong performance with a 19% EBITDA increase, driven by robust growth in Commercial OEM and Aftermarket sales. The company continues its aggressive M&A strategy, acquiring SEI Industries, an electron device business, and Raptor Scientific, adding significant high-margin revenue streams. Elevated debt levels and potential regulatory scrutiny pose risks, potentially limiting M&A flexibility and impacting future growth. Despite high-quality operations, TransDigm's valuation appears fully priced, suggesting limited near-term upside; I remain cautious and will avoid buying for now. Read the full article on Seeking AlphaRevenue & Expenses Breakdown
Revenue & Expenses Breakdown
How TransDigm Group makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 28 Mar 26 | 9,503 | 1,864 | 997 | 0 |
| 27 Dec 25 | 9,110 | 1,808 | 964 | 0 |
| 30 Sep 25 | 8,831 | 1,866 | 921 | 0 |
| 28 Jun 25 | 8,579 | 1,751 | 926 | 0 |
| 29 Mar 25 | 8,388 | 1,720 | 916 | 0 |
| 28 Dec 24 | 8,157 | 1,644 | 927 | 0 |
| 30 Sep 24 | 7,940 | 1,481 | 934 | 0 |
| 29 Jun 24 | 7,606 | 1,560 | 890 | 0 |
| 30 Mar 24 | 7,304 | 1,450 | 858 | 0 |
| 30 Dec 23 | 6,977 | 1,351 | 817 | 0 |
| 30 Sep 23 | 6,585 | 1,260 | 780 | 0 |
| 01 Jul 23 | 6,243 | 1,071 | 769 | 0 |
| 01 Apr 23 | 5,897 | 958 | 773 | 0 |
| 31 Dec 22 | 5,632 | 853 | 758 | 0 |
| 30 Sep 22 | 5,429 | 779 | 744 | 0 |
| 02 Jul 22 | 5,198 | 762 | 685 | 0 |
| 02 Apr 22 | 5,018 | 841 | 651 | 0 |
| 01 Jan 22 | 4,884 | 746 | 617 | 0 |
| 30 Sep 21 | 4,798 | 607 | 671 | 0 |
| 03 Jul 21 | 4,692 | 499 | 662 | 0 |
| 03 Apr 21 | 4,496 | 178 | 653 | 0 |
| 02 Jan 21 | 4,746 | 396 | 671 | 0 |
| 30 Sep 20 | 5,103 | 467 | 715 | 0 |
| 27 Jun 20 | 5,471 | 594 | 714 | 0 |
| 28 Mar 20 | 5,970 | 726 | 773 | 0 |
| 28 Dec 19 | 5,695 | 604 | 747 | 0 |
| 30 Sep 19 | 5,223 | 728 | 744 | 0 |
| 29 Jun 19 | 4,731 | 730 | 592 | 0 |
| 30 Mar 19 | 4,191 | 820 | 487 | 0 |
| 29 Dec 18 | 3,956 | 822 | 453 | 0 |
| 30 Sep 18 | 3,811 | 906 | 450 | 0 |
| 30 Jun 18 | 3,686 | 796 | 427 | 0 |
| 31 Mar 18 | 3,603 | 748 | 423 | 0 |
| 30 Dec 17 | 3,538 | 702 | 414 | 0 |
| 30 Sep 17 | 3,504 | 469 | 414 | 0 |
| 01 Jul 17 | 3,456 | 503 | 405 | 0 |
| 01 Apr 17 | 3,356 | 494 | 388 | 0 |
| 31 Dec 16 | 3,284 | 480 | 378 | 0 |
| 30 Sep 16 | 3,171 | 583 | 357 | 0 |
| 02 Jul 16 | 3,106 | 570 | 342 | 0 |
| 02 Apr 16 | 3,000 | 509 | 332 | 0 |
| 02 Jan 16 | 2,822 | 478 | 315 | 0 |
| 30 Sep 15 | 2,707 | 444 | 303 | 0 |
Quality Earnings: TDG has high quality earnings.
Growing Profit Margin: TDG's current net profit margins (19.6%) are lower than last year (20.5%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: TDG's earnings have grown significantly by 26.9% per year over the past 5 years.
Accelerating Growth: TDG's earnings growth over the past year (8.4%) is below its 5-year average (26.9% per year).
Earnings vs Industry: TDG earnings growth over the past year (8.4%) did not outperform the Aerospace & Defense industry 24.1%.
Return on Equity
High ROE: TDG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/12 07:31 |
| End of Day Share Price | 2026/07/10 00:00 |
| Earnings | 2026/03/28 |
| Annual Earnings | 2025/09/30 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
TransDigm Group Incorporated is covered by 37 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Peter Arment | Baird |
| David Strauss | Barclays |
| Carter Copeland | Barclays |