TransDigm Group Incorporated (TDG) AI Stock Analysis

TransDigm Group Incorporated designs, manufactures, and supplies aircraft components globally across three segments: Power & Control, Airframe, and Non-aviation. Power & Control supplies mechanical and electro-mechanical actuators, ignition systems, pumps, valves, electric motors, generators, and power conditioning devices to engine suppliers, airlines, and military agencies. The Airframe segment produces engineered latching and locking devices, cockpit security systems, audio and antenna solutions, and safety restraints. The Non-aviation segment provides seat belts for ground transportation, actuators for space applications, and refueling systems for heavy equipment and energy sectors.

TransDigm grew annual revenue from $4.80B in FY2021 to $5.43B in FY2022, $6.58B in FY2023, $7.94B in FY2024, and $8.83B in FY2025, achieving a 5-year revenue CAGR of 11.6%. Net income expanded from $680.0M in FY2021 to $2.07B in FY2025, with net margin improving from 14.2% to 23.5%. Operating margin rose from 35.2% in FY2021 to 47.6% in FY2025. In the latest quarter ending June 30, 2026, quarterly revenue grew 22.5% year-over-year while quarterly earnings grew 10.9%. Over the trailing twelve months, revenue reached $10.01B with diluted EPS of $32.97 and an operating margin of 46.0%.

As of June 30, 2026, TransDigm held $2.77B in cash and short-term investments against total debt of $33.48B, leading to net debt of $30.71B and shareholders' equity of -$9.81B. Total assets stood at $26.75B and the current ratio was 3.02. In FY2025, operating cash flow reached $2.04B and free cash flow was $1.82B. During FY2025, the company deployed capital toward $222.0M in capital expenditures, $500.0M in share buybacks, and $9.63B in dividends paid, contributing to a 5-year share count change of -3.0%.

TransDigm shares closed at $1139.34 on October 16, 2026, representing a 1-year return of -8.8% compared to 16.8% for the S&P 500 (SPY). Over 5 years, the stock returned 115.4% versus 83.0% for the S&P 500. TransDigm carries a market cap of $62.98B and an enterprise value of $91.81B. It trades at a trailing P/E of 34.6x, above the median of its S&P 500 Industrials peers of 28.4x. Its forward P/E is 23.1x versus the peer median of 20.1x, and its EV-to-EBITDA is 18.2x compared to the peer median of 17.2x.

TransDigm is covered by Wall Street analysts with 9 Strong Buy, 3 Buy, and 11 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $1414.30, which is 24.1% above the last close of $1139.34. For the current fiscal year ending September 30, 2026, consensus estimates project revenue of $10.53B and EPS of $41.28. The company has beaten EPS expectations in each of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of TransDigm Group Incorporated (TDG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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