TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On May 5, the company reported financial results for the second quarter of fiscal 2026.
Net sales grew 18% from the prior year to $2,544 million. Net income totalled $536 million, up 12% year-over-year, with the company attributing the gain to higher sales, effective use of its value-driven operational strategy, and deferred compensation expenses. Adjusted EPS came in at $9.85, up 8% from the same period in fiscal 2025.
Given the strong quarterly performance and recent acquisitions of Jet Parts Engineering and Victor Sierra, TransDigm Group Incorporated (NYSE:TDG) said it was raising the full-year guidance at the midpoint for sales by $420 million, adjusted EPS by $1.14, and EBITDA by $210 million.
Wall Street has a Moderate Buy rating on TDG with an average share price upside potential of 20%, as of the close of business on May 5. On the other hand, 79 hedge funds hold a stake in the company, as of Q4 2025, according to Insider Monkey’s database. This is up from 68 in the prior quarter, reflecting growing institutional interest.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
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