Third quarter 2026
Filed Oct 28, 2026Benchmark delivers record third quarter revenue and strong earnings growth; raises fiscal year 2026 outlook.
Third-quarter revenue was $811 million, up 19% year-over-year, while diluted GAAP EPS rose 21% and diluted non-GAAP EPS rose 35%. The company also raised its fiscal-year revenue-growth outlook to approximately 16%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $811M | – | up 19% year-over-year |
| Gross profit, three months ended September 30, 2026GAAP | $84.45M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | 10.4 % | – | – |
| Operating income, three months ended September 30, 2026GAAP | $ 30,699 | – | – |
| Operating margin, three months ended September 30, 2026GAAP | 3.8 % | – | – |
| Net income, three months ended September 30, 2026GAAP | $17.15M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 0.48 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.47 | – | up 21% year-over-year |
| Non-GAAP income from operations, three months ended September 30, 2026non-GAAP | $44.71M | – | – |
| Non-GAAP operating margin, three months ended September 30, 2026non-GAAP | 5.5 % | – | – |
| Non-GAAP gross profit, three months ended September 30, 2026non-GAAP | $84.94M | – | – |
| Non-GAAP gross margin, three months ended September 30, 2026non-GAAP | 10.5 % | – | – |
| Non-GAAP net income, three months ended September 30, 2026non-GAAP | $30.70M | – | – |
| Diluted earnings per share, three months ended September 30, 2026non-GAAP | $0.84 | – | up 35% year-over-year |
| Operating cash flow, three months ended September 30, 2026GAAP | $ 29,912 | – | – |
| Additions to property, plant and equipment and software, three months ended September 30, 2026GAAP | −$15.48M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $14.44M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $ 2,244,158 | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $232.1M | – | – |
| Gross margin, nine months ended September 30, 2026GAAP | 10.3 % | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $82.83M | – | – |
| Operating margin, nine months ended September 30, 2026GAAP | 3.7 % | – | – |
| Net income, nine months ended September 30, 2026GAAP | $50.05M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 1.38 | – | – |
| Non-GAAP income from operations, nine months ended September 30, 2026non-GAAP | $116.0M | – | – |
| Non-GAAP operating margin, nine months ended September 30, 2026non-GAAP | 5.2 % | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $79.14M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026non-GAAP | $ 2.18 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $111.6M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $64.95M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Semi-Cap30 % of total revenue. | $ 241 | – | – |
| Industrial21 % of total revenue. | $ 172 | – | – |
| Medical17 % of total revenue. | $ 138 | – | – |
| AC&C16 % of total revenue. | $ 132 | – | – |
| A&D16 % of total revenue. | $ 128 | – | – |
Fourth Quarter 2026 outlook
- Revenuebetween $815 million and $855 million
- NoteDiluted GAAP earnings per share between $0.58 and $0.64
- NoteDiluted non-GAAP earnings per share between $0.85 and $0.91
- NoteDiluted non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $7.8 million and other non-operating expenses of $2.7 million to $3.2 million, which includes restructuring, amortization of intangibles and other expenses
- NoteFiscal year 2026 revenue growth of approximately 16%
Capital returns
- Share repurchases of $ (14,266 ) during the nine months ended September 30, 2026.
What drove it
- Management said demand is broadening across the portfolio and bookings momentum remains healthy.
- Semi-Cap was the largest sector at $ 241, representing 30 % of total revenue.
- Third-quarter non-GAAP operating margin was 5.5 %, compared with 4.8 % in the prior-year quarter and 5.2 % in the second quarter of 2026.
- The company raised its outlook and now expects 2026 revenue growth of approximately 16%.
Concerns
- Third-quarter GAAP operating margin was 3.8 %, below the 4.0 % reported in the second quarter of 2026.
- Third-quarter operating cash flow of $ 29,912 and free cash flow of $ 14,435 were below $ 36,608 and $ 25,114, respectively, in the prior-year quarter.
- Inventories increased to $ 633,575 at September 30, 2026 from $ 482,544 at December 31, 2025.
- The filing identifies risks from customer-demand fluctuations, supply-chain constraints, inflationary pressures, foreign-currency fluctuations, high interest rates, geopolitical uncertainty, tariffs, facility utilization, and obsolete or unsold inventory.
What to watch
- Fourth-quarter revenue delivery against guidance of between $815 million and $855 million.
- Fourth-quarter diluted GAAP earnings per share guidance of between $0.58 and $0.64 and diluted non-GAAP earnings per share guidance of between $0.85 and $0.91.
- Whether the company sustains its 5.5 % third-quarter non-GAAP operating margin.
- Inventory levels, which were $ 633,575 at September 30, 2026.
- Cash conversion cycle performance following 54 days in the third quarter of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $ 290,656 at September 30, 2026, compared with $ 322,064 at December 31, 2025.
- Current installments of long-term debt were $ 3,750 at September 30, 2026, unchanged from $ 3,750 at December 31, 2025.
- Long-term debt, net of current installments, was $ 154,086 at September 30, 2026, compared with $ 206,826 at December 31, 2025.
- Inventories were $ 633,575 at September 30, 2026, compared with $ 482,544 at December 31, 2025.
- Accounts receivable, net, were $ 435,296 at September 30, 2026, compared with $ 391,101 at December 31, 2025.
- Accounts payable were $ 663,708 at September 30, 2026, compared with $ 403,222 at December 31, 2025.
- Cash conversion cycle was 54 days in the third quarter of 2026, compared with 77 days in the third quarter of 2025 and 59 days in the second quarter of 2026.
- Net cash used in investing activities was $ (44,387 ) during the nine months ended September 30, 2026.
- Net cash used in financing activities was $ (94,808 ) during the nine months ended September 30, 2026.
- Net debt activity was $ (53,175 ) during the nine months ended September 30, 2026.
Analysis
Benchmark reported record third-quarter revenue of $811 million, up 19% year-over-year from $681 million and above $756 million in the second quarter. Management described demand as broadening across its portfolio and said bookings momentum remained healthy. Semi-Cap was the largest reported sector at $241 million, or 30% of total revenue, followed by Industrial at $172 million, Medical at $138 million, AC&C at $132 million, and A&D at $128 million.
Profitability expanded materially from the prior-year quarter. GAAP gross margin was 10.4%, compared with 10.0%, while GAAP operating margin was 3.8%, compared with 3.5%. Non-GAAP gross margin was 10.5%, compared with 10.1%, and non-GAAP operating margin was 5.5%, compared with 4.8%. GAAP diluted EPS of $0.47 increased 21% year-over-year, while non-GAAP diluted EPS of $0.84 increased 35% year-over-year. Sequentially, GAAP operating margin was below 4.0% in the second quarter, but non-GAAP operating margin increased from 5.2%.
Cash generation was positive but lower than the prior-year quarter. Third-quarter operating cash flow was $29,912 and free cash flow was $14,435, versus $36,608 and $25,114, respectively, in the prior-year quarter. For the nine-month period, net cash provided by operating activities was $111,615 and free cash flow was $64,946. Cash and cash equivalents were $290,656 at September 30, 2026, while long-term debt, net of current installments, was $154,086. The company repurchased $14,266 of shares during the nine months ended September 30, 2026.
Working-capital deployment bears attention. Inventories were $633,575 at September 30, 2026, compared with $482,544 at December 31, 2025, while accounts payable increased to $663,708 from $403,222. The cash conversion cycle improved to 54 days from 77 days in the prior-year quarter and 59 days in the second quarter. Management guided fourth-quarter revenue to between $815 million and $855 million and raised its fiscal-year expectation to revenue growth of approximately 16%.
The fourth-quarter EPS ranges call for diluted GAAP EPS between $0.58 and $0.64 and diluted non-GAAP EPS between $0.85 and $0.91. The filing states that non-GAAP guidance excludes approximately $7.8 million of stock-based compensation expense and $2.7 million to $3.2 million of other non-operating expenses, including restructuring, amortization of intangibles and other expenses. Execution against this revenue and earnings outlook, margin retention, inventory management, and continued cash conversion are the principal reported items to monitor.
Management, verbatim
Our third quarter results reflect the continued transformation of Benchmark into a higher-performing company.
David Moezidis, President and CEO
Demand is broadening across our portfolio, bookings momentum remains healthy, and our teams continue to execute at a high level. As a result, we delivered record quarterly revenue, grew earnings at nearly twice the rate of sales, and are once again raising our outlook for the year. We now expect 2026 revenue growth of approximately 16%, further increasing our outlook beyond the $3 billion annual revenue level we established last quarter.
David Moezidis, President and CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Fourth-quarter gross-margin guidance was not provided.
- Fourth-quarter operating-expense guidance was not provided.
- Fourth-quarter tax-rate guidance was not provided.
- A quantitative bookings figure was not provided.
- A quarterly share-repurchase amount was not provided.
- Dividend amount or dividend guidance was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.