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How TransDigm Group (TDG) makes money
TransDigm Group (TDG) made $2.7B of revenue in the third quarter fiscal 2026 (Q3 FY26), +23% from a year earlier. Of every dollar of revenue, 59¢ was left as gross profit, 45¢ was left as operating profit, 20¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q3 FY26 | % of revenue |
|---|---|---|
| Revenue | $2.7B | 100.0% |
| Cost of revenue | $1.1B | 40.6% |
| Gross profit | $1.6B | 59.4% |
| Operating expenses | $401M | 14.6% |
| Operating profit | $1.2B | 44.8% |
| Income tax | $173M | 6.3% |
| Net earnings | $540M | 19.7% |
| Operating cash flow | $724M | 26.4% |
| Free cash flow | $650M | 23.7% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 FY26 | $2.7B | +22% |
| Q2 FY26 | $2.5B | +18% |
| Q1 FY26 | $2.3B | +14% |
| Q4 FY25 | $2.4B | +12% |
| Q3 FY25 | $2.2B | +9% |
| Q2 FY25 | $2.1B | +12% |
| Q4 FY24 | $2.2B | +18% |
From TransDigm Group's 10-Q filed Aug 4, 2026 (on EDGAR).
Questions
How does TransDigm Group make money?
TransDigm Group (TDG) made $2.7B of revenue in the third quarter fiscal 2026 (Q3 FY26), +23% from a year earlier. Of every dollar of revenue, 59¢ was left as gross profit, 45¢ was left as operating profit, 20¢ was left as net earnings.
What is TransDigm Group's profit margin?
Net earnings were $540M, 19.7% of revenue, in the third quarter fiscal 2026; the operating margin was 44.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.