July 22, 2026

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Teledyne Technologies Incorporated (NYSE: TDY) reported second-quarter 2026 results above expectations, supported by record quarterly orders, sales, operating profit, higher margins, strong cash flow, and raised full-year guidance.
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Teledyne is an industrial technology company that provides digital imaging, instrumentation, aerospace and defense electronics, engineered systems, sensors, marine equipment, test and measurement products, and defense-related technologies.
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The company reported non-GAAP diluted EPS of $6.28, above estimates of $5.78, representing an 8.7% earnings surprise. Revenue came in at $1.66 billion, above estimates of $1.56 billion, with revenue growth of 9.8%.

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Results Beat Expectations

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Net sales increased 9.8% to $1.66 billion from $1.51 billion in the prior-year quarter.
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GAAP net income attributable to Teledyne increased 19.9% to $251.7 million.
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GAAP diluted EPS increased to $5.37 from $4.43 a year earlier.
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Non-GAAP net income increased to $294.3 million.
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Non-GAAP diluted EPS increased 20.8% to $6.28 from $5.20.
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Operating margin improved to 20.0%, compared with 18.4% a year earlier. Non-GAAP operating margin improved to 23.4% from 22.2%.

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Digital Imaging Led Growth

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Digital Imaging revenue increased 12.7% to $868.7 million.
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Operating income in the segment increased 42.3% to $170.2 million.
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The growth was driven by higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications, surveillance systems, industrial and scientific imaging systems, and X-ray products.
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Management said organic growth was strongest in Digital Imaging, helped by demand for space, airborne, marine unmanned systems, and counter-unmanned applications.

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Other Segments Also Grew

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Instrumentation revenue increased 5.5% to $387.8 million.
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The increase was supported by stronger marine instrumentation demand from offshore energy and defense markets, environmental instrumentation growth, and higher electronic test and measurement sales.
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Aerospace and Defense Electronics revenue increased 8.2% to $286.4 million, helped by higher defense electronics sales.
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Engineered Systems revenue increased 8.4% to $119.6 million, driven by higher sales of engineered products and energy systems.

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Cash Flow and Balance Sheet

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Cash from operations increased to $315.2 million from $226.6 million a year earlier.
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Free cash flow increased to $284.7 million from $196.3 million.
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Teledyne ended the quarter with net debt of $1.69 billion, down from $2.12 billion at the end of 2025.
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The company made a $450 million debt maturity payment during the quarter.
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Teledyne also ended the quarter with a consolidated leverage ratio of 1.1 times.

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Guidance Raised

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Teledyne raised its full-year 2026 outlook.
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The company now expects full-year GAAP diluted EPS of $20.73 to $20.99, up from its prior outlook of $20.08 to $20.44.
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Full-year non-GAAP diluted EPS is now expected to range from $24.45 to $24.65, up from the prior range of $23.85 to $24.15.
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For the third quarter, Teledyne expects GAAP diluted EPS of $5.10 to $5.25 and non-GAAP diluted EPS of $6.05 to $6.15.

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The Bigger Picture

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Teledyne delivered a strong quarter across orders, sales, margins, and cash flow.
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Revenue beat expectations, non-GAAP EPS rose more than 20%, free cash flow improved sharply, and management raised full-year guidance. Growth was broad across segments, with Digital Imaging standing out as the main driver due to demand in defense, space, unmanned systems, industrial imaging, and X-ray products.
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The key question is whether Teledyne can keep converting its backlog into higher revenue while maintaining margin expansion and pursuing acquisitions from a stronger balance sheet.
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