Valued at $73.4 billion by market cap, Cleveland, Ohio-based TransDigm Group Incorporated (TDG) operates as a leading designer, producer, and supplier of aircraft components in the United States and internationally. The aerospace and defense giant is expected to reveal its second-quarter results on Tuesday, May 6.

Ahead of the event, analysts expect TDG to report a non-GAAP profit of $8.24 per share, marking an 11.1% increase from $7.42 per share reported in the year-ago quarter. Furthermore, the company has surpassed the Street’s bottom-line estimates in each of the past four quarters by a notable margin.

For the full fiscal 2025, TDG is expected to deliver a non-GAAP EPS of $34.90, up nearly 10% from $31.74 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further surge 16.6% year-over-year to $40.69 per share.

TDG stock prices have surged 8.8% over the past 52 weeks, notably outpacing the Industrial Select Sector SPDR Fund’s (XLI) 2.5% gains and the S&P 500 Index’s ($SPX) 6% returns during the same time frame.

Despite delivering better-than-expected earnings and revenues, TDG stock prices fell 3.3% after the release of its Q4 results on Feb. 4. Driven by strong commercial aftermarket and defense market, the company’s revenues for the quarter increased 12% year-over-year to more than $2 billion. Meanwhile, the company continued to deliver strong margins, with its adjusted EBITDA margin expanding 190 bps compared to the year-ago quarter and coming in at an impressive 52.9%. Moreover, TDG’s adjusted net income increased 10.4% year-over-year to $456 million, exceeding the consensus estimates by a notable margin.

The consensus view on TDG stock is extremely optimistic, with a “Strong Buy” rating overall. Of the 20 analysts covering the stock, opinions include 15 “Strong Buys,” one “Moderate Buy,” and four “Holds.” Its mean price target of $1,504.10 suggests an 11.3% upside potential from current price levels.