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View the full Nov 12, 2026 version

Price: $651.12
Discount category: Close to intrinsic value
Intrinsic value source: AI estimate
Next earnings: Jan 20, 2027
Next earnings is estimate: Yes
Company name: added: Teledyne Technologies
Sector: added: Imaging, instrumentation and defense electronics
About: added: Teledyne Technologies Incorporated (Teledyne) is based in Thousand Oaks, California. It has four segments. Digital Imaging sells infrared detectors, cameras and imaging systems, maritime and surveillance products, and X-ray products. Instrumentation sells marine, environmental, and test and measurement instruments. Aerospace and Defense Electronics sells electronics for defense and for aircraft. Engineered Systems sells engineered products. Net sales were $1,684.9 million in Q3 2026 and $4,907.5 million for nine months. Digital Imaging was $903.0 million of the Q3 sales. Funded backlog was nearly $5.3 billion. Robert Mehrabian is Executive Chairman. The shares trade on the NYSE in US dollars. Teledyne files 10-K and 10-Q reports.
Thesis: added: The price of Teledyne depends on whether growth and margin stay at record levels while it pays $1.1 billion for Varex. Orders have been above sales in every quarter for three years. Digital Imaging sales rose 15% in Q3 2026 on demand for infrared detectors and systems, including for space and unmanned uses. Non-GAAP earnings per share rose 20.6% to $6.72. Teledyne raised its 2026 outlook in each of the first three quarters, to $25.40 to $25.50 of non-GAAP earnings per share. Investors weigh this against the dependence on government budgets, the effect of tariffs and export limits, and the cost and risk of buying Varex. For the price to hold or rise, four things must be true. Growth in Digital Imaging must stay above that of the rest of the group. The backlog of nearly $5.3 billion must turn into sales. Instrumentation and Aerospace and Defense Electronics must keep their margins. The Varex purchase must close in early 2027 and must earn its cost. The Q4 2026 report in January 2027 with the 2027 outlook is the next test. If growth and margin hold, the gap can close over one to two years. If government budgets, tariffs or the Varex plan go wrong, the gap can last longer.
Valuation: added: The intrinsic value for Teledyne is an AI estimate from November 12, 2026. It is not an analyst's value. An AI research agent calculated it from the filings of Teledyne with the SEC. The method is a multiple of non-GAAP diluted earnings per share for 2027. Non-GAAP earnings leave out amortization of acquired intangible assets, which the release puts at $3.62 to $3.67 per share for 2026, and the multiples allow for this as an assumption. Earnings are after interest and tax, so the estimate makes no debt adjustment. The Q3 2026 release (8-K, October 21, 2026) gives non-GAAP diluted earnings per share of $6.72 for Q3 2026 and guidance for 2026 of $25.40 to $25.50, which is $25.45 at the midpoint. It gives guidance for Q4 2026 of $6.60 to $6.70, net debt of $1,465.4 million at September 27, 2026, funded backlog of nearly $5.3 billion and 46.9 million diluted weighted average shares for Q3 2026. The release and the Form 8-K of August 10, 2026 say that Teledyne will buy Varex Imaging for about $1.1 billion in cash, and that the purchase is expected to close in early 2027. The estimate makes no adjustment for Varex and assumes that it earns its cost. The Form 10-Q for the quarter ended September 27, 2026 gives 46,036,417 shares outstanding at October 14, 2026. The estimate is per share, so it needs no share count. The 2027 earnings per share and the multiples are assumptions. The low case assumes $26.50, up about 4% from the 2026 midpoint, because growth in defense and space slows and margins stop rising, at 19 times. It gives $503.50 per share. The base case assumes $28.50, up about 12%, because of sales growth near the 2026 pace, higher margin and share repurchases, at 23 times. It gives $655.50 per share. The high case assumes $30.50, up about 20%, because of stronger infrared and space sales and a good result from Varex, at 27 times. It gives $823.50 per share. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is $659.50 per share. As of Nov 12, 2026.
Risks: added: Government budgets can change. Cuts, delays in awards and shutdowns can slow defense and space orders and payments. Teledyne names these risks in its release. The Varex purchase can disappoint. Teledyne plans to pay about $1.1 billion from cash and its credit facility. Varex stockholders and regulators must approve it, and Teledyne must integrate a new business. Trade rules can raise costs. The 10-Q says that tariffs continue and that China limits exports of some rare earth minerals that Teledyne uses. Tariff refunds helped the margin in 2026, and they may not repeat. Instrumentation grows slowly. Its Q3 2026 sales rose only 1.9%, and sales of electronic test and measurement instruments fell by $4.8 million. Commercial aerospace is weak. Sales of aerospace electronics fell by $4.6 million in Q3 2026, and lower aircraft production can reduce them more.
Balance sheet: added: Cash: $562M Debt: $2.0B Net debt: $1.5B Debt due within 12 months: $0.1M At September 27, 2026, Teledyne had total debt of $2,027.8 million, of which $0.1 million is current, and cash of $562.4 million. Net debt was $1,465.4 million, against $2,123.0 million at December 28, 2025. Teledyne paid a debt maturity of $450 million in 2026. The consolidated leverage ratio was 0.9 times. $1,158.4 million was available under the $1.20 billion credit facility. Teledyne plans to pay for Varex, about $1.1 billion, with cash and the credit facility. Free cash flow was $319.5 million in Q3 2026. Stockholders' equity was $11,135.4 million. As of Sep 27, 2026.
Checkpoints: added: Jan 20, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: Teledyne meets its 2026 outlook of $25.40 to $25.50 of non-GAAP earnings per share and gives a 2027 outlook with higher earnings, and this passes; a lower outlook fails. Q1 2027 (estimate): Varex purchase closes. Pending. Watch: The purchase closes in early 2027 with the approval of Varex stockholders and regulators, and this passes; a delay or a block fails.
Recent events: added: Oct 21, 2026: Teledyne reported Q3 2026 results. Net sales rose 9.4% to $1,684.9 million, and non-GAAP earnings per share rose 20.6% to $6.72. Free cash flow was $319.5 million. Teledyne raised its 2026 outlook for non-GAAP earnings per share to $25.40 to $25.50. It repurchased shares for $224.6 million from September to October 19. Sep 28, 2026: Teledyne said that Jason VanWees, Vice Chairman, will retire on February 1, 2027. Mary Grace DeForest became Corporate Vice President of Investor Relations and Mergers and Acquisitions on November 1, 2026. Aug 10, 2026: Teledyne agreed to buy Varex Imaging, which makes X-ray sources and detectors, for $18.90 per share in cash. The total value is about $1.1 billion with equity awards and net debt. Teledyne expects to close in early 2027, subject to regulatory approval and a vote of Varex stockholders. Jul 22, 2026: Teledyne reported Q2 2026 results. Net sales rose 9.8% to $1,662.5 million, and non-GAAP earnings per share rose 20.8% to $6.28. Funded backlog was about $5.0 billion. Teledyne raised its 2026 outlook to $24.45 to $24.65. Apr 22, 2026: Teledyne reported Q1 2026 results. Net sales rose 7.6% to $1,560.1 million, and non-GAAP earnings per share rose 17.2% to $5.80. Teledyne bought DD-Scientific and paid a debt maturity of $450 million after the quarter.