Why is Transcat (TRNS) stock soaring today. Anthony lee /. November 4, 2026 What happened? Shares of measurement equipment distributor Transcat (NASDAQ:TRNS) jumped 18.9% in the morning session after the company reported strong third-quarter 2026 financial results, highlighted by an 18% increase in total revenue to $97.1 million. According to a company press release, Transcat reported that service revenue rose 23% to $64.8 million, with service gross margin expanding 220 basis points to 34%. Distribution revenue climbed 10% to $32.3 million, driven by strong rental demand across its markets. Beyond top-line expansion, the company delivered adjusted earnings of $0.64 per share, outpacing Wall Street consensus estimates of $0.45 per share. Operating margin remained stable at 5.2%, matching the same period last year, while adjusted EBITDA reached $14.91 million to beat analyst projections. What is the market telling us. Transcat's shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Transcat and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 12% on the news that the company reported mixed third-quarter 2025 results that showed a miss on earnings per share and a steep decline in profit. While revenue grew by 21.3% to $82.3 million and surpassed expectations, investors focused on the weaker aspects of the report. The company's adjusted earnings per share of $0.44 missed analyst forecasts. More significantly, net income experienced a sharp decrease of 61.4% to $1.3 million compared to the prior year. This drop in profitability was linked to higher operating expenses from recent acquisitions. The company's operating margin also compressed, falling to 4.3% from 5.5% in the same quarter last year. Transcat is up 87.5% since the beginning of the year, and at $107.18 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Transcat's shares 5 years ago would now be looking at an investment worth $1,252. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you're unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

Transcat Q2 earnings call highlights. Transcat (NASDAQ:TRNS) reported fiscal second-quarter 2027 revenue growth of 18% as demand remained strong across its calibration services and distribution businesses, prompting the company to raise its full-year outlook for service organic revenue growth. Consolidated revenue rose to $97.1 million in the quarter. Gross profit increased 22% to $32.6 million, while consolidated gross margin expanded 110 basis points to 33.6%. Net income grew 90%, and diluted earnings per share rose 79% to $0.25. On an adjusted basis, diluted EPS increased 46% year over year to $0.64. "The fiscal second quarter of 2027 marked another sequential quarter of strong financial performance, led by strength in our calibration business," President and CEO Jaime Irick said. He said the company believes it is gaining market share through organic growth, acquisitions and a more productive sales organization. Service segment drives growth and margin expansion. Service revenue increased 23% to $64.8 million, including 16% organic growth. The company said the quarter marked its 70th consecutive quarter of year-over-year service revenue growth. Service gross profit climbed 31%, and service gross margin expanded 220 basis points from the prior-year period to 34.4%. Irick attributed the improvement to operating leverage, operational initiatives, pricing, business mix and the maturation of new customer relationships. He said Transcat is focused on improving customer-facing processes, applying Lean principles and using technology, including artificial intelligence, to improve productivity. During the question-and-answer session, Chief Financial Officer Tom Barbato said the broader calibration market was growing at approximately 4% to 6%, while Transcat's service growth reflected pricing gains of roughly a couple of percentage points and market-share gains. He said growth was broad-based across geographies and end markets. Irick said the company's sales organization has become more focused on upstream performance measures, including pipeline development, win rates and customer retention. He added that Transcat is seeing continued demand in regulated markets such as life sciences, aerospace and defense, and energy. Management raised its fiscal 2027 outlook for service organic revenue growth to the low-double-digit range, up from its prior forecast for high-single-digit growth. The company also continues to expect service gross-margin expansion for the full year, including at least 100 basis points of year-over-year expansion in the second half. Distribution growth supported by rentals. Distribution revenue grew 10% to $32.3 million, driven by rental-channel demand and product sales. Distribution gross profit increased 6%, while gross margin was 32%, improving sequentially from 31.4% in the fiscal first quarter but declining from the prior-year period. Barbato said the year-over-year margin decline reflected sales of lower-margin used equipment, which enabled the company to reinvest in its rental asset portfolio. He said Transcat expects distribution margins to improve year over year in the second half of fiscal 2027, supported by the higher-margin rental business. The company expects its rental business to grow at a low-double-digit rate over time. Barbato said the company periodically sells underutilized rental assets to free capital for reinvestment in equipment with stronger yields. Management also identified energy as a source of demand, including power generation, power consumption, transmission and distribution, and electric-vehicle charging infrastructure. Barbato said data-center expansion has so far represented a larger opportunity for Transcat's rental and distribution business than for calibration services, though management expects it to be a future tailwind. M&A remains central to strategy. Transcat highlighted its August acquisition of Southeastern Biomedical Associates, which serves hospital networks across the southeastern U.S. and other markets. Irick said the acquisition expands the company's biomedical calibration footprint in high-cost-of-failure applications where accredited calibration is important for patient safety and regulatory compliance. Management said Southeastern's culture, customer focus and quality standards align closely with Transcat's. The company has also invested capital to expand Southeastern's capabilities and support growth among its existing customers. Irick said acquisitions will remain a core part of Transcat's growth strategy alongside organic expansion. He noted that the company has acquired 14 businesses over the past five years, with all but one completed through proprietary processes. Management is working to further strengthen its integration processes and to identify opportunities in adjacent regulated, recurring-revenue markets. * Adjusted EBITDA increased 23% to $14.9 million. * Adjusted EBITDA margin expanded 70 basis points to 15.4%. * Service adjusted operating income increased 45% to $10.6 million. * Operating free cash flow for the first six months rose 46% to $10.9 million. * At quarter-end, total debt was $116.9 million and the leverage ratio was 2.18 times. Irick said Transcat sees a path toward $500 million in revenue and continued margin expansion over the next three to five years, supported by organic growth, acquisitions and expansion of its rental business. About Transcat (NASDAQ:TRNS). Transcat, Inc (NASDAQ: TRNS) provides calibration, compliance, and measurement services for organizations that rely on accurate test and measurement equipment. The company supports customers in regulated industries, including life sciences, aerospace and defense, energy, manufacturing, and other industrial markets. Its service offerings include laboratory and onsite calibration, repair, validation, and asset-management services. Transcat calibrates a broad range of equipment used to measure temperature, pressure, electrical and electronic properties, radio frequency signals, dimensional characteristics, and other technical parameters.