TransDigm Group (NYSE:TDG) reported first-quarter results on Tuesday that came in ahead of analyst expectations and prompted the company to lift its full-year guidance, although the stock edged lower in pre-market trading.
Shares of the aircraft components maker fell 1.12% after the release, despite solid top- and bottom-line performance.
For the quarter ended December 27, 2025, TransDigm posted adjusted earnings per share of $8.23, topping the consensus forecast of $8.09. Revenue rose 13.9% year over year to $2.28 billion, slightly ahead of estimates of $2.26 billion, while organic sales increased 7.4%.
“We are pleased with our team’s performance and operating results for the first quarter. This is a solid start to the 2026 fiscal year,” said Mike Lisman, TransDigm Group’s CEO. “Total revenue ran ahead of our expectations. Additionally, bookings were strong in all three of our major market channels.”
EBITDA As Defined climbed 12.8% to $1.2 billion, translating into a margin of 52.4%, compared with 52.9% in the prior-year period. The company noted that recently completed acquisitions reduced margins by around 2.0%.
Looking ahead, TransDigm raised its fiscal 2026 outlook, now forecasting revenue in the range of $9.85 billion to $10.04 billion, compared with its earlier projection of $9.75 billion to $9.95 billion. Adjusted earnings per share guidance was also increased to $37.42 to $39.34, up from the previous range of $36.49 to $38.53.
The revised guidance reflects broad-based strength across all end markets, with commercial OEM revenue expected to deliver the fastest growth as aircraft manufacturers ramp up production. Commercial aftermarket and defense revenues both recorded high single-digit growth during the quarter.
TransDigm also pointed to continued acquisition-driven expansion, highlighting the completed purchase of Simmonds Precision Products and pending deals for Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings, representing roughly $3.2 billion in total capital deployment.