Teledyne raises 2026 outlook and agrees to buy Varex Imaging for $1.1 billion

Revenue came in at $1.68 billion, just above the $1.67 billion expected, as third-quarter earnings also topped forecasts

Teledyne Technologies reported third-quarter earnings per share of $6.72, beating expectations by $0.49. Revenue reached $1.68 billion against forecasts of $1.67 billion.

The company raised its full-year 2026 guidance. It now expects GAAP diluted earnings per share of $21.71 to $21.87, up from a prior range of $20.73 to $20.99. On a non-GAAP basis, it raised its outlook to $25.40 to $25.50 a share, from $24.45 to $24.65.

Teledyne also agreed to acquire Varex Imaging in an all-cash deal valued at approximately $1.1 billion, expected to close in early 2027. Executive Chairman Robert Mehrabian said organic growth accelerated in the company's Digital Imaging unit, driven by infrared detector and subsystem sales for space and unmanned applications, with funded backlog nearing $5.3 billion after orders have outpaced sales for three straight years. Between September and October 19, Teledyne repurchased $224.6 million of its own shares at a weighted average price of $607.03.

The guidance increase, paired with that third straight year of orders exceeding sales, suggests demand for Teledyne's infrared detectors and imaging subsystems tied to space and unmanned programs is still building. The Varex deal pushes Teledyne's imaging business into x-ray components for medical and industrial scanning, a market separate from its defense and aerospace sensor work, widening where that backlog growth could eventually surface. The continued buybacks alongside the raised outlook point to management treating the current share price as inexpensive relative to where it expects earnings to go. An earnings beat, a guidance raise and an acquisition announced together make for an unusually active quarter for a company that typically moves in smaller steps.