TransDigm Group (TDG) Q2 FY2026 earnings: revenue $2.5 billion, up 18.3% on the year

TransDigm Group Inc. (TDG) reported revenue of $2.5 billion for Q2 FY2026, the quarter ended 28 March 2026, up 18.3% on the same quarter a year earlier. Net income was $535 million, up 11.7% on the year, and diluted earnings per share $9.20. The figures are the company's own, from the 10-Q it filed with the SEC on 5 May 2026.

Revenue

$2.5 billion

+18.3% on the year · +11.3% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

46.3%

46.1% a year earlier

Q3 FY2024Q2 FY2026

Net income

$535 million

+11.7% on the year · +20.2% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$9.20

+11.7% on the year · +39.0% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 8 raised, 1 lowered.

Quarter sales rose 18%: Net sales were $2,544 million, up 18% from $2,150 million a year earlier. The company reported organic growth of 11.0% of net sales.
Commercial aftermarket grew fastest: Commercial aftermarket had the highest growth of the three end markets. The commercial transport segment grew 16% in the quarter.
EBITDA As Defined margin down 1.4 points: EBITDA As Defined margin was 52.6% against 54.0% a year earlier. For the twenty-six weeks the margin was 52.5% against 53.5%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	2,544	2,285	2,150	+11.3%	+18.3%
Cost of revenue	1,033	933	876	+10.7%	+17.9%
Gross profit	1,511	1,352	1,274	+11.8%	+18.6%
Gross margin	59.4%	59.2%	59.3%
Selling, general and administrative	273	254	236	+7.5%	+15.7%
Operating income	1,178	1,042	991	+13.1%	+18.9%
Operating margin	46.3%	45.6%	46.1%
Interest expense	484	475	378	+1.9%	+28.0%
Pre-tax income	700	572	622	+22.4%	+12.5%
Income tax	164	127	143	+29.1%	+14.7%
Effective tax rate	23.4%	22.2%	23.0%
Net income	535	445	479	+20.2%	+11.7%
Net margin	21.0%	19.5%	22.3%
Diluted EPS	$9.20	$6.62	$8.24	+39.0%	+11.7%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	135	832	148	-83.8%	-8.8%
Capital expenditure	71.0	60.0	56.0	+18.3%	+26.8%
Free cash flow	64.0	772	92.0	-91.7%	-30.4%
Free cash flow margin	2.5%	33.8%	4.3%
Cash from investing	-164	-973	-167
Cash from financing	1,390	-141	-24.0
Depreciation and amortisation	105	100	89.0	+5.0%	+18.0%
Share-based compensation	26.0	27.0	48.0	-3.7%	-45.8%
Buybacks	615	106	53.0	+480.2%	+1,060.4%
Dividends paid	0.0	59.0	0.0
Dividend per share	n/a	n/a	$0.00
Diluted shares, weighted	58m	58m	58m	0.0%	+0.2%
Shares outstanding at period end	56m	56m	56m	-1.0%	-0.4%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	-9,402	-9,270	-5,671
Non-controlling interest	8.0	7.0	7.0	+14.3%	+14.3%
Redeemable equity	0.0	n/a	n/a
Debt	32,003	30,046	25,049	+6.5%	+27.8%
Operating lease liabilities	n/a	n/a	37.0
Finance lease liabilities	n/a	n/a	270
Other liabilities	2,833	2,974	2,213	-4.7%	+28.0%
Total liabilities and equity	25,442	23,757	21,905	+7.1%	+16.1%
Fixed assets	1,678	1,653	1,519	+1.5%	+10.5%
Goodwill	11,038	11,075	10,355	-0.3%	+6.6%
Intangible assets	3,844	3,783	3,422	+1.6%	+12.3%
Cash and equivalents	3,884	2,528	2,426	+53.6%	+60.1%
Receivables	1,720	1,564	1,442	+10.0%	+19.3%
Inventory	2,400	2,373	2,010	+1.1%	+19.4%
Other assets	878	781	731	+12.4%	+20.1%
Total assets	25,442	23,757	21,905	+7.1%	+16.1%

Questions

What was TransDigm Group's revenue in Q2 FY2026?

TransDigm Group (TDG) reported revenue of $2.5 billion for Q2 FY2026, the quarter ended 28 March 2026, up 18.3% on the same quarter a year earlier.

How much did TransDigm Group earn in Q2 FY2026?

Net income for Q2 FY2026 was $535 million, up 11.7% on the year, and diluted earnings per share $9.20.

When did TransDigm Group report Q2 FY2026 results?

TransDigm Group filed its 10-Q for the quarter ended 28 March 2026 with the SEC on 5 May 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,278	1,194	1,327	1,398	1,510	1,397	1,592	1,744	1,852	1,789	1,919	2,046	2,186	2,006	2,150	2,237	2,438	2,285	2,544	2,741
Cost of revenue	553	533	591	582	624	604	663	715	761	747	767	826	928	771	876	905	968	933	1,033	1,113
Gross profit	725	661	736	816	886	793	929	1,029	1,091	1,042	1,152	1,220	1,258	1,235	1,274	1,332	1,470	1,352	1,511	1,628
Gross margin	57%	55%	55%	58%	59%	57%	58%	59%	59%	58%	60%	60%	58%	62%	59%	60%	60%	59%	59%	59%
SG&A	154	170	183	184	211	169	199	209	203	220	248	248	264	211	236	242	256	254	273	332
Operating income	535	455	520	599	641	590	695	783	855	787	867	934	943	974	991	1,039	1,161	1,042	1,178	1,227
Operating margin	42%	38%	39%	43%	42%	42%	44%	45%	46%	44%	45%	46%	43%	49%	46%	46%	48%	46%	46%	45%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	300	326	316	n/a	378	378	397	n/a	475	484	514
Pre-tax income	288	193	260	312	362	301	397	469	549	488	519	602	606	619	622	635	753	572	700	713
Tax rate	27%	16%	23%	23%	27%	24%	23%	25%	25%	22%	22%	23%	23%	20%	23%	22%	19%	22%	23%	24%
Net income	209	163	199	238	266	228	304	351	415	382	403	461	468	493	479	492	610	445	535	539
Net margin	16%	14%	15%	17%	18%	16%	19%	20%	22%	21%	21%	23%	21%	25%	22%	22%	25%	19%	21%	20%
Diluted EPS	$3.61	$1.98	$3.38	$4.10	$3.94	$3.33	$5.32	$6.14	$7.23	$4.87	$6.97	$7.96	$5.80	$7.62	$8.24	$8.47	$7.75	$6.62	$9.20	$9.39
Operating cash flow	289	279	87.0	309	273	377	130	406	462	636	229	608	572	752	148	631	507	832	135	724
Capital expenditure	25.0	25.0	32.0	29.0	33.0	31.0	35.0	36.0	37.0	36.0	48.0	40.0	41.0	42.0	56.0	58.0	66.0	60.0	71.0	74.0
Free cash flow	264	254	55.0	280	240	346	95.0	370	425	600	181	568	531	710	92.0	573	441	772	64.0	650
Buybacks	n/a	n/a	n/a	245	n/a	n/a	n/a	0.0	n/a	0.0	0.0	0.0	0.0	316	53.0	131	0.0	106	615	1,086
Dividends paid	0.0	46.0	0.0	0.0	1,045	38.0	0.0	0.0	0.0	2,038	0.0	0.0	0.0	4,396	0.0	0.0	5,233	59.0	0.0	0.0
Shares outstanding	55m	55m	55m	54m	54m	55m	55m	55m	55m	56m	56m	56m	56m	56m	56m	56m	56m	56m	56m	55m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 28 March 2026, filed 5 May 2026: the filing.