Teledyne stock forecast 2027–2029
MyStockButler's October 2026 analysis: Teledyne's weighted scenario reaches $667.42 in October 2027 from $630.10 on October 22, 2026. It hinges on profitable backlog conversion.
Where could Teledyne's shares be by 2029?
The probability-weighted price reaches $667.42 in October 2027, including dividends, for a 6% return from $630.10. It reaches $702.42 in October 2028, an 11% return, and $748.70 in October 2029, a 19% return. The 2029 range is wide: $495.83 in the bear case to $1,047.15 in the bull case. Dividends add nothing because all cases assume zero payout.
| Case | Probability | October 2027 | October 2028 | October 2029 |
|---|---|---|---|---|
| Bear | 23 % | 564.73 (-10 %) | 530.72 (-16 %) | 495.83 (-21 %) |
| Base | 57 % | 680.18 (+8 %) | 707.38 (+12 %) | 746.02 (+18 %) |
| Bull | 20 % | 749.14 (+19 %) | 885.76 (+41 %) | 1047.15 (+66 %) |
| Weighted | 100 % | 667.42 (+6 %) | 702.42 (+11 %) | 748.70 (+19 %) |
What this means. The weighted value is an average based on the chances of each case, not a guaranteed share price.
What has to go right or wrong for Teledyne?
The base case reflects funded backlog of about $5.3 billion, with approximately 72% expected to convert within twelve months, and Digital Imaging organic growth of 14.3%. Aerospace and Defense Electronics also had a 1.29 book-to-bill ratio. The bear case allows for delayed defense deliveries, fixed-price overruns and weaker short-cycle demand. Electronic test-and-measurement sales already fell 6.3% despite orders rising 18%, showing why orders may not become shipments promptly. The bull case requires imaging and defense deliveries to be profitable, Instrumentation bookings to convert, and Varex to retain customers while improving margins.
How much cash does Teledyne really make?
Operating cash flow was $1,191.3 million in 2025. Capital spending was $117.3 million, leaving free cash flow of $1,074.0 million. Deducting $39.6 million of stock compensation gives $1,034.4 million of “real free cash flow,” an economic allowance for paying employees with shareholders’ ownership.
| 2025 | 2024 | 2023 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Cash from operations | 1,191.3 | 1,191.9 | 836.1 | 486.8 | 824.6 |
| − Capital spending | 117.3 | 83.7 | 114.9 | 92.6 | 101.6 |
| = Free cash flow | 1,074.0 | 1,108.2 | 721.2 | 394.2 | 723.0 |
| − Stock pay | 39.6 | 37.7 | 32.3 | 31.5 | 33.9 |
| = Real free cash flow | 1,034.4 | 1,070.5 | 688.9 | 362.7 | 689.1 |
What this means. The company's own free cash flow is higher because it does not subtract stock pay, which gives employees part of the company even though no cash is paid.
What does an investor pay for Teledyne today?
The 2025 recovery in revenue growth and operating margin follows weaker 2024 readings, while net debt rose in 2025 after prior declines. Teledyne’s free cash flow, computed as cash from operations minus capital spending, remained strong in 2025, but working capital absorbed cash, unbilled receivables increased, and cash per share fell even as reported EPS rose. The valuation tension is a 3.7% free-cash-flow yield against a 25.4x forward P/E, with cash yield below the 10-year Treasury yield.
Cash is the harder test. Free-cash-flow yield compares cash left after capital spending with the value of the shares. Teledyne’s yield is below the 5.04% yield on a 10-year U.S. Treasury note, a government bond, on October 22, 2026. In Q3 2026, operating cash flow was $352.5 million. Capital spending was $33 million. Working-capital timing and the acquisition-related tax payment in 2022 can make one period look unusually strong or weak. With no meaningful dividend, retained cash must fund investment, debt repayment, repurchases or acquisitions.
| Today (Oct 22, 2026) | |
|---|---|
| Share price | 630.10 |
| P/E, last 12 months (calculated) | 28.8x |
| P/E, next 12 months (calculated) | 25.4x |
| Free cash flow yield (calculated) | 3.7% |
| Real free cash flow yield (calculated) | 3.5% |
What this means. Enterprise value is higher than market value because it adds the company's debt and subtracts its cash, showing what the whole business would cost.