| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 45 | — | 17.8x | Around median | |
Growth | 18 | 5.9% | 7.1% | Bottom tier | |
Quality | 26 | -33.4% | 4.5% | Bottom tier | |
Safety | 59 | — | 2.6x | Around median | |
Capital Return | 27 | 0.15% | 2.12% | Bottom tier | |
Momentum | 85 | 58.0% | 2.9% | Top tier | |
Sentiment | 45 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ralliant Corp is an industrial technology company operating through two main segments: Sensors & Safety Systems and Test & Measurement. It generates revenue from measurement and testing instruments, precision sensors, predictive analytics, and mission-critical safety systems used in defense, aerospace, power grids, semiconductors, advanced electronics, and data center cooling; in Q1 FY2026, Sensors & Safety Systems accounted for approximately $324 million in revenue, compared with $210 million for Test & Measurement.
In Q2 FY2026, revenue was $567.8 million, gross profit was $292.9 million, net income was $57.2 million, and earnings per share were $0.51. These results equate to a gross margin of approximately 51.6% and a net income margin of approximately 10.1%. The period's results also exceeded guidance ranges and prompted the company to raise its FY2026 outlook.
Trailing twelve-month data through FY2026 shows revenue of $2.2 billion and gross profit of $1.1 billion, but records a net loss of $1.2 billion and negative earnings per share of approximately $10.95. Therefore, the trailing twelve-month profitability picture differs from the positive profit recorded in Q2 FY2026, which is a fundamental distinction when assessing the quality and sustainability of the operating improvement.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $69.2, within a relatively narrow range of $65 to $78, compared with the 52-week range high of $75.41; accordingly, the average target is approximately 8% below that high. The consensus is Buy, but the absence of a usable price-to-earnings ratio because of negative trailing twelve-month earnings, alongside the wide 52-week range of $37.27 to $75.41, makes the valuation highly dependent on the continued transition from a trailing twelve-month loss to quarterly profits and on execution against the raised outlook.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Ralliant is benefiting from demand in defense, power grid modernization, and accelerating electronics innovation cycles associated with AI. The Defense & Space business grew organically by 21% in Q1 FY2026, and its backlog exceeded $1 billion across more than 40 programs. Utilities also recorded record orders, while Test & Measurement returned to growth with revenue of $210 million and organic growth of 9%.
The backlog extends over two to three years and gives the company better visibility into future production and shipments. Most of its value is concentrated in existing missile and munitions production programs, including FAD, PAC-3, and Tomahawk, with production increasing to between two and five times historical levels. In contrast, management explained that defense revenue and margins may be volatile between quarters and that defense product margins are below the company average.
Revenue was $567.8 million in Q2 FY2026, while gross profit reached $292.9 million. The company recorded net income of $57.2 million and earnings per share of $0.51, equating to a gross margin of approximately 51.6% and a net margin of approximately 10.1%. The company announced on August 1, 2026, that the results exceeded guidance ranges, prompting it to raise its FY2026 outlook.
The segment generated revenue of $210 million in Q1 FY2026, representing reported growth of 12% and organic growth of 9%. The book-to-bill ratio ranged between 1.1 and 1.2 times, the highest since 2022, and normalized adjusted EBITDA margin improved by 700 basis points to 11.9%. Products announced in 2025 are gaining traction in defense, AI, diversified electronics, energy storage, and humanoid robotics applications.
The program targets annual run-rate savings of between $50 million and $60 million by 2028, and the company has taken actions that generate approximately $20 million in annual run-rate savings. Management expects to record actual savings of between $10 million and $12 million during FY2026, then add $20 million to $25 million annually in 2027 and 2028. These actions, together with operating leverage, aim to restore adjusted EBITDA margin to the mid-point of the low-to-mid-twenties cyclical range by 2028.
Trailing twelve-month data through FY2026 records a net loss of $1.2 billion and negative earnings per share of approximately $10.95, so no usable price-to-earnings ratio is available. The increased weighting of defense also pressures the margin mix, while semiconductor results remain affected by the comparison with a large project for a single customer through Q4 FY2026. Potential supply disruptions and tariffs estimated at approximately $25 million in FY2026 add further execution risks.
