Teledyne Technologies filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $6.52 billion, which rose 8.6% on the year before. That growth rate was up 0.7 percentage points on the rate a quarter earlier.

What stands out

Net income rose 25.6% over the year while free cash flow rose 10.5%. Reported profit and cash are moving at different speeds.

Capital spending rose 24.9%, faster than operating cash flow’s 11.9%. Less of the cash generated was left over.

Growth and profit

The trailing gross margin was 43.6%. The trailing operating margin was 20.0%, up 2.4 percentage points from a year earlier. The trailing net margin was 15.8%. Net income over the twelve months was $1.03 billion, which rose 25.6% on the year before.

Cash flow

Operating cash flow over the twelve months was $1.28 billion, up 11.9% on the year before. Capital spending was $133.0 million, or 2.0% of revenue. Free cash flow, operating cash flow less capital spending, was $1.15 billion, up 10.5% on the year before. Free cash flow was 17.6% of revenue (the free-cash-flow margin), up 0.3 percentage points from a year earlier. The average diluted share count fell 0.8% over the year.

In context

Today’s free-cash-flow margin of 17.6% is higher than 91% of the company’s own past quarterly readings, which have ranged from 3.7% to 19.5%. Today’s operating margin of 20.0% is higher than 100% of the company’s own past quarterly readings, which have ranged from 10.3% to 19.4%. Today’s twelve-month revenue growth rate of 8.6% is higher than 61% of the company’s own past quarterly readings, which have ranged from −6.4% to 65.1%.

Guidance

The company gave its fourth quarter 2026 guidance for GAAP diluted earnings per share: $5.68 to $5.83. The company raised its full year 2026 guidance for GAAP diluted earnings per share: $21.71 to $21.87.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 26.1%, and 5 percentage points higher would raise it by 33.9%. A free-cash-flow margin 1 percentage point lower would lower it by 5.8%.

What to watch

The next filing will show whether the recent acceleration in revenue growth continues. It will reveal if the divergence between net income and free cash flow persists. Investors will see if capital spending remains elevated relative to operating cash flow.