TDY Teledyne Technologies (TDY) Q3 FY26 earnings call
Teledyne delivered record third-quarter sales and operating earnings, driven by broad-based organic growth across its Digital Imaging segment and strong execution of its substantial backlog. The company raised its full-year 2026 sales and earnings guidance significantly, reflecting robust performance and a balanced portfolio. Management is confident in continued growth and margin improvement, supported by strategic acquisitions and disciplined capital allocation, while acknowledging potential future budget uncertainties and ongoing supply chain inflation.
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TDY operating KPIs by quarter
| KPI | Mar 2025 Q1 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|
| Book-to-bill | 1.05 ratioBut if you come back and look at it as a whole, big picture, our book-to-bill across the company is 1.05x.Source: earnings call transcript | 1.09 ratioAnd the overall book-to-bill ratio of 1.09.Source: earnings call transcript | 1.07 ratioSo total for Q4 is 1.07.Source: earnings call transcript | 1.16 ratioGiven stronger sales in the first quarter, but also record orders and backlog with a book-to-bill of 1.16, which is our tenth consecutive quarter of book-to-bill of over 1, we're comfortable in increasing both our expected sales and earnings for 2026.Source: earnings call transcript | 1.23 ratioOverall, our book-to-bill was 1.23, led by digital hedging, which was higher than 1.4% -- 1.4x.Source: earnings call transcript | — | +6% |
| Book-to-bill Instrumentation | 1.04 ratioOur instruments book-to-bill is 1.04x.Source: earnings call transcript | 0.9 ratioIn the Instrumentation segment, we had a book-to-bill overall of 0.9, a little higher in T&M, for example, 0.98; Environmental closer to 0.95; marine closer to 0.8, about 0.8.Source: earnings call transcript | — | — | — | 1.07 ratioAnd overall, we think if you look at the different segments, even in instruments that George talked about and you just mentioned, our book-to-bill is 1.07.Source: earnings call transcript | — |
| Book-to-bill Digital Imaging | 1.11 ratioOverall, Digital Imaging book-to-bill is 1.11x.Source: earnings call transcript | 1.12 ratioThird quarter Digital Imaging book-to-bill was 1.12x.Source: earnings call transcript | 1.06 ratioDigital imaging is above 1 or 1.06.Source: earnings call transcript | ~1.38 ratioDigital Imaging right now is looking like about 1.38 in book-to-bill in instruments, a lot of short-cycle stuff, but it's still holding above 1, just slightly over 1.Source: earnings call transcript | — | ~1.2 ratioIf you add them all up, they all did very well and digital imaging book-to-bill as a whole, both what we call our legacy and player had a book-to-bill of about 1.2x.Source: earnings call transcript | — |
| Backlog | ~$4BWell, the Qioptiq backlog that we acquired increased about $60 million because of the 2 new programs overall backlog, I think year-over-year is at the highest we've had, including Qioptiq, it's about I'm going to say about $4 billion, which for us is pretty healthy.Source: earnings call transcript | — | — | ~$4.6BWe have about $4.6 billion in our backlog right now, and those will translate into revenue.Source: earnings call transcript | ~$5BOrders have now exceeded sales for the 11th consecutive quarter, and we ended June with approximately $5 billion of funded backlog.Source: earnings call transcript | ~$5.3BFor all of Teledyne, orders have exceeded sales for 12 consecutive quarters and funded backlog is now approximately $5.3 billion.Source: earnings call transcript | — |
| Book-to-bill Aerospace and Defense Electronics | — | 0.84 ratioAnd then in Aerospace and Defense Electronics, again, longer cycle business, lumpiness in some larger orders, book-to-bill ratio was 0.84, and Engineered Systems was over 2x in the quarter.Source: earnings call transcript | 1.25 ratioAerospace and defense is higher at 1.25.Source: earnings call transcript | — | — | 1.29 ratioHowever, Third quarter bookings were very strong in both the defense and aerospace markets, with a segment book-to-bill ratio of 1.29.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.