Teledyne Technologies Inc., headquartered in Thousand Oaks, California, announced a solid finish to its fiscal year with record-setting fourth-quarter results. The company reported net sales totaling $1.61 billion for the period ended December 28, 2025, marking a 7.3% increase compared to $1.50 billion during the same quarter the previous year. This sales growth incorporated an additional $73.0 million attributed to recently completed acquisitions.
Net income attributable to Teledyne rose notably, reaching $275.6 million, which translates to $5.84 per diluted share, up from $198.5 million or $4.20 per diluted share in the comparable prior-year period. On an adjusted basis, earnings per share attained $6.30, surpassing Wall Street estimates of $5.83. Correspondingly, quarterly sales also outperformed expectations, exceeding the consensus forecast of $1.573 billion with actual sales of $1.612 billion.
The company enhanced its operating efficiency in the quarter with the operating margin increasing to 20.4% from 15.8% a year earlier. When viewed on a non-GAAP basis, operating margins improved from 22.7% to 23.9%, reflecting underlying operational improvements.
During this period, Teledyne recorded several expenses and benefits that affected pretax results, including $54.9 million in amortization of intangible assets related to acquisitions, $0.8 million in transaction and integration costs, and a modest $0.2 million inventory step-up expense. Additionally, there was a $20.8 million income tax benefit associated with the FLIR acquisition.
Segment Contributions
Within Teledyne’s portfolio, the Digital Imaging segment saw a 3.4% increase in net sales to $850.5 million. Operating income for this segment stood at $162.9 million, with non-GAAP operating income improving to $209.7 million.
The Instrumentation segment experienced a 3.7% growth in net sales to $382.6 million. This segment reported operating income of $107.3 million and a non-GAAP operating income figure of $110.4 million.
Notably, the Aerospace and Defense Electronics segment delivered outstanding performance, achieving a substantial 40.4% jump in net sales, rising to $275.9 million. Operating income was $69.4 million, with the non-GAAP operating income reaching $75.1 million.
Conversely, the Engineered Systems segment faced a 9.9% decrease in net sales, dropping to $103.3 million. Despite this revenue decline, operating income for the segment increased to $11.5 million.
Liquidity and Capital Allocation
The company generated $379.0 million in cash flow from operating activities in the quarter and recorded free cash flow of $339.2 million. At quarter-end, December 28, 2025, Teledyne’s cash and cash equivalents amounted to $352.4 million, against total debt of $2.48 billion, resulting in net debt of approximately $2.12 billion. The consolidation leverage ratio was recorded at 1.4 times.
During the quarter, Teledyne repurchased approximately 0.8 million shares for $400.0 million, reflecting a strategic capital return to shareholders. The company also completed a carve-out acquisition of TransponderTech and, subsequent to quarter-end on January 14, 2026, acquired DD-Scientific.
Outlook
Looking ahead to 2026, Teledyne projects first-quarter GAAP earnings per share in the range of $4.45 to $4.59, closely aligned with Wall Street expectations of $4.50. Adjusted earnings forecasts for the period range between $5.40 and $5.50 per share, slightly surrounding the consensus estimate of $5.43.
For the full year of 2026, the company anticipates GAAP earnings between $19.76 and $20.22 per share, which marginally trails analyst estimates of $20.28. Adjusted earnings forecasts are positioned between $23.45 and $23.85 per share, consistent with the Street's projection of $23.63.
Following this earnings release, Teledyne Technologies’ shares experienced a 3.65% increase, trading at $586.90 during Wednesday premarket hours. The stock approaches its 52-week high of $595.99, suggesting positive investor sentiment post-results.