Teledyne Technologies Incorporated (TDY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Teledyne Technologies Incorporated (TDY) Technology Profile & Competitive Position

Teledyne Technologies Incorporated is a diversified technology company providing enabling solutions to industrial growth markets, with a focus on digital imaging, instrumentation, aerospace and defense electronics, and engineered systems. Its broad portfolio and global reach position it as a key player in various sectors.

What Is the Investment Thesis for TDY?

Teledyne Technologies presents a compelling investment case driven by its diversified portfolio and strategic positioning in high-growth markets. With a P/E ratio of 30.2 and a profit margin of 15.0%, the company demonstrates solid profitability. Key growth catalysts include increasing demand for digital imaging solutions and expanding applications in aerospace and defense. The company's strong gross margin of 38.5% indicates efficient operations. However, potential risks include economic downturns affecting industrial spending and competition from other technology providers. Overall, Teledyne's focus on innovation and strategic acquisitions supports long-term value creation.

Based on FMP financials and quantitative analysis

TDY Key Highlights

• Market Cap of $30.2B reflects investor confidence in Teledyne's market position and growth potential.
• Profit Margin of 15.0% demonstrates strong operational efficiency and profitability.
• Gross Margin of 38.5% indicates effective cost management and pricing strategies.
• Beta of 1.01 suggests the stock's volatility is similar to the overall market.
• Presence in diverse markets such as marine, environmental, industrial, aerospace, and defense provides resilience against sector-specific downturns.

Who Are TDY's Competitors?

TDY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TDY's Key Strengths?

• Diversified product portfolio across multiple sectors.
• Strong technological expertise and innovation capabilities.
• Established relationships with key customers.
• History of successful strategic acquisitions.

What Are TDY's Weaknesses?

• Reliance on government contracts can be subject to budget fluctuations.
• Exposure to cyclical industries such as aerospace and defense.
• Integration challenges with acquired companies.
• Limited brand recognition compared to larger technology companies.

What Could Drive TDY Stock Higher?

• Potential new contracts in aerospace and defense sector.
• Increasing demand for digital imaging solutions.
• Expansion of environmental monitoring instrumentation market.
• Strategic acquisitions to enhance product portfolio.

What Are the Key Risks for TDY?

• Economic downturn affecting industrial spending.
• Changes in government regulations and policies.
• Intense competition from other technology providers.
• Technological obsolescence and rapid innovation cycles.

What Are the Growth Opportunities for TDY?

• Expansion in Digital Imaging: The increasing demand for high-resolution imaging in medical diagnostics, industrial automation, and scientific research presents a significant growth opportunity. The global digital imaging market is projected to reach $38.7 billion by 2028. Teledyne's advanced sensor technology and camera systems position it to capture a substantial share of this expanding market. This growth is expected to be ongoing, with continuous advancements in imaging technology driving demand.
• Aerospace and Defense Electronics: Growing geopolitical tensions and increased defense spending are driving demand for advanced electronic components and subsystems. The global aerospace and defense electronics market is expected to reach $118.7 billion by 2027. Teledyne's expertise in defense electronics and communication systems allows it to secure lucrative contracts and expand its market presence. This represents an ongoing opportunity as defense budgets continue to rise.
• Instrumentation for Environmental Monitoring: Increasing environmental regulations and the need for accurate monitoring of pollutants create a growing market for Teledyne's instrumentation solutions. The environmental monitoring market is projected to reach $27.9 billion by 2027. Teledyne's instruments for marine and environmental applications are well-positioned to benefit from this trend. This growth is expected to be ongoing, driven by stricter environmental standards and increased awareness.
• Engineered Systems for Space Exploration: The renewed focus on space exploration and the development of advanced space technologies provide a significant growth opportunity for Teledyne's engineered systems. The global space market is projected to reach $558 billion by 2027. Teledyne's expertise in systems engineering and manufacturing solutions for space applications allows it to participate in major space programs. This represents an ongoing opportunity as space exploration initiatives gain momentum.
• Strategic Acquisitions: Teledyne has a history of successful acquisitions that have expanded its product portfolio and market reach. Continuing to acquire companies with complementary technologies and market access can drive further growth. The company's disciplined approach to acquisitions ensures that new additions are accretive to earnings and aligned with its strategic objectives. This is an ongoing strategy that Teledyne can leverage to enhance its competitive position.

What Opportunities Does TDY Have?

• Growing demand for digital imaging in medical and industrial applications.
• Increasing defense spending and geopolitical instability.
• Expansion into emerging markets with high growth potential.
• Development of new technologies and applications in space exploration.

What Threats Does TDY Face?

• Economic downturns affecting industrial and commercial spending.
• Intense competition from larger technology companies.
• Technological obsolescence and rapid innovation cycles.
• Changes in government regulations and policies.

What Are TDY's Competitive Advantages?

• Technological Expertise: Teledyne's deep expertise in digital imaging, aerospace electronics, and instrumentation creates a barrier to entry.
• Diversified Portfolio: A broad range of products and services across multiple sectors reduces reliance on any single market.
• Strong Customer Relationships: Long-standing relationships with key customers in defense, aerospace, and industrial sectors provide recurring revenue streams.
• Strategic Acquisitions: Successful integration of acquired companies enhances capabilities and market reach.

What Does TDY Do?

Founded in 1960 and headquartered in Thousand Oaks, California, Teledyne Technologies Incorporated has evolved into a leading provider of sophisticated technology solutions. Initially, the company expanded through strategic acquisitions, building a diverse portfolio of businesses. Today, Teledyne operates through four primary segments. The Instrumentation segment offers monitoring and control instruments for marine, environmental, and industrial applications. The Digital Imaging segment provides advanced sensors and cameras for industrial, medical, and scientific uses. The Aerospace and Defense Electronics segment delivers critical electronic components and subsystems. The Engineered Systems segment focuses on systems engineering and manufacturing solutions for defense, space, and energy sectors. Teledyne serves markets worldwide, including the United States, Canada, the United Kingdom, and the Netherlands, utilizing both a direct sales force and third-party distributors.

What Products and Services Does TDY Offer?

• Develops and manufactures digital imaging solutions for industrial, medical, and scientific applications.
• Provides monitoring and control instruments for marine, environmental, and industrial sectors.
• Offers electronic components and subsystems for aerospace and defense applications.
• Delivers systems engineering and integration solutions for defense, space, and energy markets.
• Creates electrochemical energy systems and electronics for military use.
• Produces power and communication connectivity devices for distributed instrumentation systems.

How Does TDY Make Money?

• Sells digital imaging products, including sensors, cameras, and systems.
• Generates revenue from instrumentation sales for monitoring and control applications.
• Secures contracts for aerospace and defense electronics components and subsystems.
• Provides engineered systems and manufacturing solutions for various industries.

What Industry Does TDY Operate In?

Teledyne Technologies operates in the technology sector, specifically within the hardware, equipment, and parts industry. This sector is characterized by rapid technological advancements and intense competition. The increasing demand for advanced imaging, aerospace, and defense technologies drives market growth. Teledyne competes with companies like Flex Ltd. (FLEX) and Jabil Inc. (JBL), focusing on specialized solutions and niche markets. The company's ability to innovate and adapt to changing market demands is crucial for maintaining its competitive edge.

Who Are TDY's Key Customers?

• Industrial manufacturers using digital imaging for quality control.
• Government agencies and defense contractors requiring aerospace and defense electronics.
• Environmental agencies and organizations needing monitoring instruments.
• Medical facilities and research institutions utilizing advanced imaging technologies.

Teledyne Technologies Incorporated (TDY) Valuation Context

Valued at $30.2B, TDY is classified as a large-cap stock. Relative to its peer group, TDY's quantitative score of 74/100 is roughly in line with the peer average of 66/100.

TDY Revenue & Earnings Trend

In Q2 2026, TDY generated $1.66B in top-line revenue, marking a sequential increase of 6.6%. The company recorded net income of $251.7M, with diluted EPS of $5.37. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Technology. Across the four most recent quarters, TDY averaged $5.17 in diluted EPS.

Company Profile

Teledyne Technologies Incorporated operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Thousand Oaks, US. The company is led by CEO George C. Bobb. TDY has traded publicly since 1999.

ROE 9%Key Financial Metrics

Return on equity for Teledyne Technologies Incorporated stands at 9.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.4%, showing how much profit it generates from its asset base. TDY trades at a trailing price-to-earnings ratio of 30.16, below the Technology sector average of ~37x. Its free cash flow yield is 3.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 8/9Financial Health

Teledyne Technologies Incorporated's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 5.01 places it in the safe zone, indicating low near-term bankruptcy risk.

7/8 beatsEarnings Track Record

Teledyne Technologies Incorporated has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.5% above estimates on average.

FY2026 estForward Outlook

Wall Street analysts project Teledyne Technologies Incorporated revenue of about $6.43B for fiscal 2026, with EPS near $24.16. The estimate reflects 8 contributing analysts.

Net buyingInsider Activity

Over the past six months, Teledyne Technologies Incorporated insiders filed 15 SEC Form 4 transactions — 2 sales and 13 purchases. On net that is roughly 21K shares acquired (about $12.9M) — insiders putting money in tends to read as conviction.

TDY Financials

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TDY Analyst Consensus

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Teledyne Technologies Incorporated Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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