Transcat Q3 revenue beats expectations

Overview

• Test measurement firm's fiscal Q3 revenue grew 26%, beating analyst expectations

• Adjusted EPS for fiscal Q3 missed analyst expectations

• Company's service revenue rose 29%, driven by acquisitions and demand in regulated markets

Outlook

• Transcat expects high single-digit service organic revenue growth in Q4 fiscal 2026

• Company optimistic about service segment momentum and new business wins

• Transcat believes acquisitions position it well for long-term shareholder value

Result Drivers

• SERVICE REVENUE GROWTH - Service revenue rose 29%, driven by acquisitions and demand in regulated markets

• DISTRIBUTION REVENUE GROWTH - Distribution revenue increased 20%

• GROSS MARGIN EXPANSION - Overall gross margin increased by 60bps, despite service margin pressure from start-up costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Transcat Inc is $105.00, about 66.5% above its February 2 closing price of $63.06

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBwcgC1n1a

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