The quarter was expected to be strong, but the magnitude was much larger. The prior company outlook called for Q3 revenue of $1.730B–$1.750B, while published expectations were roughly $1.644B of revenue and $2.14 of adjusted EPS. The filing delivered $1.846B of revenue and $3.07 of non-GAAP EPS, making this a clear beat on both sales and earnings.
| Metric | Q3 FY26 | Q3 FY25 | Year-over-year / expectation |
|---|---|---|---|
| Orders | $2.091B | $1.340B | +56% (Financial Highlights) |
| Revenue | $1.846B | $1.352B | +36%; above ~$1.644B consensus (Income Statement) |
| GAAP diluted EPS | $2.30 | $1.10 | +109% (Income Statement) |
| Non-GAAP diluted EPS | $3.07 | $1.72 | +79%; above ~$2.14 consensus (EPS reconciliation) |
| Free cash flow | $403M | $291M | +38% (Free Cash Flow) |
Commercial communications was the main upside engine, not a broad but muted recovery. Commercial Communications revenue rose 56% to $1.006B, driving much of the company’s 36% growth, while aerospace, defense and government grew 14%. CSG revenue reached $1.345B, up 43% year over year.
The beat also came with meaningful operating leverage. CSG operating margin expanded to 34% from 26%, and Electronic Industrial Solutions Group margin rose to 31% from 22%; companywide GAAP operating income nearly doubled to $461M from $234M. (Segment results — Communications Solutions Group; Segment results — Electronic Industrial Solutions Group; Income Statement)
Orders suggest the upside was supported by demand rather than accounting alone. Q3 orders were $2.091B, up 56% year over year, with the order-to-revenue ratio above one. Cash generation also improved, with nine-month operating cash flow of $1.379B and free cash flow of $1.282B versus $1.184B and $1.094B, respectively, in the prior year. (Financial Highlights; Cash Flow statement; Free Cash Flow)
Net read: a broad, substantial beat that resets the near-term picture higher. Q4 guidance calls for $1.930B–$1.950B of revenue and $3.34–$3.40 of non-GAAP EPS, extending the acceleration implied by this quarter rather than merely maintaining the prior trajectory. The direction was partly known because management had already guided to a strong Q3; the surprise is how far results exceeded that bar.
Read the original 8-K on SEC EDGAR ↗