TransDigm Group Incorporated (NYSE:TDG) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$2.5b arriving 2.8% ahead of forecasts. Statutory earnings per share (EPS) were US$9.20, 7.9% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for TransDigm Group from 22 analysts is for revenues of US$10.3b in 2026. If met, it would imply a meaningful 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.7% to US$34.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.1b and earnings per share (EPS) of US$34.77 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of US$1,532, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TransDigm Group analyst has a price target of US$1,835 per share, while the most pessimistic values it at US$1,200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of TransDigm Group'shistorical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.8% annually. So although TransDigm Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$1,532, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple TransDigm Group analysts - going out to 2028, and you can see them free on our platform here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.