AI-extracted from the 10-Q filed 2026-08-04 — Q3 FY2026 (quarter ended June 27, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
TransDigm grew Q3 FY2026 net sales 22.5% YoY to $2,741M, but interest expense rose 29.5% to $514M as debt climbed to $33.5B following the $2.2B JPE/VSA acquisition.
Biggest Revenue Drivers
Power & Control$1,509M+32.5% YoY
Increase primarily from higher commercial aftermarket, commercial OEM and defense sales
Airframe$1,186M+12.1% YoY
Increase primarily from higher commercial aftermarket, commercial OEM and defense sales
Biggest Revenue Drivers
Total revenue: $2,741M+22.5% YoY
Power & Control$1,509M+32.5% YoY
Increase primarily from higher commercial aftermarket, commercial OEM and defense sales
Airframe$1,186M+12.1% YoY
Increase primarily from higher commercial aftermarket, commercial OEM and defense sales
Non-aviation$46M+15.0% YoY
Largest Expense Items
Cost of sales$1,113M+23.0% YoY
Increase driven by dilutive impact of fiscal 2026 and 2025 acquisitions, partly offset by favorable sales mix and cost improvements
Interest expense-net$514M+29.5% YoY
Increase primarily due to higher outstanding borrowings
Selling and administrative expenses$332M+37.2% YoY
Increase driven by dilutive impact of acquisitions and costs to support higher net sales growth
Margins: Gross profit margin was roughly flat at 59.4% vs 59.5% a year ago, while operating margin declined to 44.8% from 46.4% due to the dilutive impact of recent acquisitions and higher S&A costs, partly offset by cost-structure improvements and sales mix.
Watch Items from the Filing
Total debt rose to $33.5B from $30.0B a year-end, funded by $3.5B of new notes/term loans in Feb/Apr 2026, driving interest expense-net up 29.5% YoY to $514M.
The company withdrew from its proposed $960M Stellant acquisition on July 13, 2026, despite having issued debt in April 2026 partly intended to fund it, with no special mandatory redemption triggered.
Defense sales reached $1,148M of $2,741M total net sales, with management noting defense revenue 'fluctuates from year-to-year' based on government budget and procurement uncertainty.
The company repurchased $978M of stock in Q3 alone (809,101 shares at $1,208.20 avg) with $3,981M still authorized, an aggressive buyback pace amid rising leverage.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Palmer PeterReporting ownerGrant or award · Sep 18, 2026
Cronin Jane M.Reporting ownerGrant or award · Sep 18, 2026
Graff MichaelReporting ownerGrant or award · Sep 18, 2026
Hennessy Sean PReporting ownerGrant or award · Sep 18, 2026
Mccullough Gary EReporting ownerGrant or award · Sep 18, 2026
Santana MicheleReporting ownerGrant or award · Sep 18, 2026
Congress trading in TDG
34 transactions in TDG reported by 7 members of Congress under the STOCK Act, most recent trade Aug 25, 2026. Reported transactions, not recommendations.
About TransDigm Group INC (TDG): stock profile, AI score and financials
TransDigm Group INC (TDG) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores TDG at 67.4/100 on a composite quality score built from its SEC filings, placing it at rank #367 of 2,925 stocks — the top 25% of the AI-ranked universe. TDG scores in the top quartile across revenue scale (86.4), balance sheet strength (82.3), profitability (78.9). Areas of concern include institutional flow (4.4) and earnings quality (35.7), which score below median versus the broader universe. Shareholder dilution risk is elevated at 41.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), TransDigm Group INC reports quarterly revenue of $2.7B, net income of $539.0M, an operating margin of 44.8%. Top institutional holders of TDG by reported 13-F value include Capital International Investors, BlackRock, Capital World Investors, based on the most recent SEC filings. TDG trades on the NYSE exchange and files with the SEC under CIK 1260221. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate TDG daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for TransDigm Group INC directly from SEC EDGAR.