Teledyne Tech.

Teledyne makes $6.1B a year, and 51.7% comes from cameras and sensors.

If you own TDY, your money is tied to defense, cameras, and lab gear.

tdy

industrials large cap updated feb 27, 2026
$660.29
market cap ~$31B · 52-week range $419–$675
xvary composite: 75 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Teledyne sells sensors, imaging gear, and industrial systems to defense, energy, and medical customers.
how it gets paid
Last year Teledyne Tech made $6.1B in revenue. Digital Imaging was the main engine at $3.15B, or 52% of sales.
why it's growing
Revenue grew 7.9% last year. The digital imaging segment is seeing solid demand for its infrared components and subsystems.
what just happened
Teledyne beat by 7.14% last quarter, with $6.30 versus $5.88 expected.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
30.0x trailing p/e — priced about right
10.0% return on capital — nothing to write home about
xvary composite: 75/100 — average
What they do
Teledyne sells sensors, imaging gear, and industrial systems to defense, energy, and medical customers.
Teledyne wins because 14,900 employees sell into hard-to-replace jobs. 51.7% of sales comes from Digital Imaging, so your replacement problem is huge. 47% of revenue comes from outside the U.S., which spreads the business across more than one map. Trailing P/E → last year's earnings price tag → 30.0x says investors pay up for that stickiness.
industrials large-cap sensors defense imaging
How they make money
$6.1B annual revenue · their business grew +7.9% last year
Digital Imaging
$3.15B
Instrumentation
$1.45B
Aerospace & Defense
$1.06B
Engineered Systems
$0.44B
The products that matter
mission-critical sensing and electronics
Defense and aerospace electronics
55% of sales tied to government budgets
this is the part of the story that most clearly explains the multiple. more than half of the $6.1B revenue base is linked to defense and government spending, which can be steady until the budget math changes.
budget-linked
infrared imaging and instrumentation
Digital imaging and instrumentation
demand cited in drones, gas detection, marine, and test equipment
management commentary points to infrared components, drones, gas detection, marine products, and electronic test and measurement as active demand pockets. that matters because it broadens the story beyond pure defense procurement.
demand pockets
bolt-on acquisition engine
Strategic small acquisitions
called out as a growth driver across business lines
this is not a product you can ship, but it is part of the operating model. Teledyne keeps adding small businesses and then asking the existing margin structure to absorb them cleanly.
operating model
Key numbers
$6.1B
annual revenue
That is the whole pie. 7.9% growth means Teledyne is still adding size.
30.0x
trailing p/e
Trailing P/E → last year's earnings price tag → you are paying 30.0x for last year's profit.
18.8%
operating margin
For every $100 of sales, Teledyne kept $18.80 before interest and tax.
90
earnings score
A 90 predictability score means earnings are unusually steady, which helps explain the premium.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 2 — safer than 80% of stocks
  • price stability 90 / 100
  • long-term debt $2.0B (6% of capital)
  • net profit margin 19.0% — keeps 19 cents of every dollar in revenue
  • return on equity 11% — $0.11 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in TDY 3 years ago → it's now worth $14,850.

The index would have given you $13,880.

same period. same starting point. TDY beat the market by $970.

source: institutional data · total return
What just happened
beat estimates
Teledyne beat by 7.14% last quarter, with $6.30 versus $5.88 expected.
Annual revenue was $6.1B, up 7.9% vs. prior year. The latest quarter posted $4.5B in revenue and $13.06 in EPS, which is a 193% and 181% jump from the prior year base.
$4.5B
revenue
$13.06
eps
7.14%
surprise
the number that mattered
7.14% was the beat. That says Teledyne is still clearing estimates, not just meeting them.
source: company earnings report, 2026

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What could go wrong

the #1 risk is defense budget cuts or procurement delays.

∘
med
government budget exposure
55% of Teledyne's sales are tied to government spending. If procurement slows, this stops looking like a diversified industrial and starts looking like a budget line item.
More than half of the $6.1B revenue base sits on the part of the customer list controlled by appropriations and program timing.
∘
med
multiple compression
The stock trades at 30.0x trailing earnings while order trends suggest roughly 5% sales growth in 2026 and 2027. That's fine if margins keep doing the heavy lifting. Less fine if they don't.
When a steady grower is priced like a premium asset, even a small slowdown can matter more than the headline revenue miss.
∘
med
acquisition integration
Management is still using strategic small acquisitions to support growth across business lines. If integration slips, the margin profile that makes this stock appealing starts doing less work.
This risk is hard to quantify from the snapshot alone. That's the honest answer. But the operating model clearly relies on deals landing cleanly.
A forced slowdown in government spending would hit the largest, most visible revenue bucket, while a margin wobble would pressure a stock already valued at 30.0x trailing earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
defense budget updates
55% of revenue is tied to government spending. if that mix changes, the whole story changes with it.
metric
revenue growth vs. the 5% guidepath
order trends point to roughly 5% sales growth in 2026 and 2027. you want to see reported numbers support that.
calendar
next earnings for margin follow-through
EPS rose faster than revenue in 2025. the next report tells you whether operating leverage is still doing its job.
trend
acquisition pace and integration quality
small deals are part of the growth model. you want added revenue without any obvious dent in the 28.0% operating margin.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. this is a quality name, not a panic name.
chart momentum
below average
technical score 4 — the fundamentals look steadier than the chart right now.
earnings predictability
90 / 100
management tends to deliver what it signals. fewer surprises, less drama.
source: institutional data
Institutional activity

institutions have been net buying for 3 consecutive quarters — 380 buyers vs. 314 sellers in 3q2025. total institutional holdings: 43.7M shares. net buying for 3 quarters.

source: institutional data · 1q2025-3q2025
source: institutional data
Price targets
3-5 year target range
$448 $776
$660 current price
$612 target midpoint · 7% from current · 3-5yr high: $975 (+50% · 10% ann'l return)
source: institutional data · analyst targets

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