Second quarter of 2026
Filed Aug 6, 2026TTM Technologies, Inc. reported record second-quarter net sales of $1.0 billion and record non-GAAP net income per diluted share of $0.99, supported by Data Center and Networking demand.
Net sales rose 37% year on year to an all-time quarterly record, GAAP operating income and net income increased from the prior-year quarter, adjusted EBITDA margin improved to 16.6%, and third-quarter and full-year outlook calls for further growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, second quarter 2026GAAP | $1.0 billion | – | up 37% year on year |
| Cost of goods sold, second quarter 2026GAAP | 792,196 (In thousands) | – | – |
| Gross profit, second quarter 2026GAAP | 211,858 (In thousands) | – | – |
| Gross margin, second quarter 2026GAAP | 21.1% | – | – |
| Selling and marketing expense, second quarter 2026GAAP | 25,490 (In thousands) | – | – |
| General and administrative expense, second quarter 2026GAAP | 62,107 (In thousands) | – | – |
| Research and development expense, second quarter 2026GAAP | 7,978 (In thousands) | – | – |
| Amortization of definite-lived intangibles, second quarter 2026GAAP | 6,888 (In thousands) | – | – |
| Restructuring charges, second quarter 2026GAAP | 340 (In thousands) | – | – |
| Total operating expenses, second quarter 2026GAAP | 102,803 (In thousands) | – | – |
| Operating income, second quarter 2026GAAP | $109.1 million | – | – |
| Operating margin, second quarter 2026GAAP | 10.9% | – | – |
| Interest expense, second quarter 2026GAAP | (10,496) (In thousands) | – | – |
| Loss on extinguishment of debt, second quarter 2026GAAP | (747) (In thousands) | – | – |
| Unrealized loss on derivative instruments, second quarter 2026GAAP | (13,994) (In thousands) | – | – |
| Other, net, second quarter 2026GAAP | (2,571) (In thousands) | – | – |
| Income before income taxes, second quarter 2026GAAP | 81,247 (In thousands) | – | – |
| Income tax benefit (provision), second quarter 2026GAAP | 1,800 (In thousands) | – | – |
| Net income, second quarter 2026GAAP | $83.0 million | – | – |
| Basic earnings per share, second quarter 2026GAAP | $0.80 | – | – |
| Diluted earnings per share, second quarter 2026GAAP | $0.77 per diluted share | – | – |
| Adjusted EBITDA, second quarter 2026non-GAAP | $166.8 million | – | – |
| Adjusted EBITDA margin, second quarter 2026non-GAAP | 16.6% of net sales | – | – |
| Non-GAAP net income, second quarter 2026non-GAAP | $106.9 million | – | – |
| Non-GAAP earnings per diluted share, second quarter 2026non-GAAP | $0.99 per diluted share | – | – |
| Cash flow from operations, second quarter 2026GAAP | $96.4 million | – | – |
| Cash flow from operations as a percentage of net sales, second quarter 2026GAAP | 9.6% of net sales | – | – |
| Total book to bill, second quarter 2026other | 1.49 | – | – |
| Net leverage ratio, second quarter 2026other | 0.9x | – | – |
| Net sales, first two quarters 2026GAAP | 1,850,030 (In thousands) | – | – |
| Gross profit, first two quarters 2026GAAP | 393,039 (In thousands) | – | – |
| Gross margin, first two quarters 2026GAAP | 21.2% | – | – |
| Total operating expenses, first two quarters 2026GAAP | 211,535 (In thousands) | – | – |
| Operating income, first two quarters 2026GAAP | 181,504 (In thousands) | – | – |
| Operating margin, first two quarters 2026GAAP | 9.8% | – | – |
| Net income, first two quarters 2026GAAP | 133,035 (In thousands) | – | – |
| Basic earnings per share, first two quarters 2026GAAP | $1.28 | – | – |
| Diluted earnings per share, first two quarters 2026GAAP | $1.24 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Data Center and Networking end marketcontinued AI demand | 40% of total net sales | – | increased 91% year on year |
| Aerospace and Defense end markethealthy improvement in backlog, reflecting positive alignment with projected priority defense programs | 37% of total net sales | – | 14% year on year revenue growth |
| Medical, Industrial and Instrumentation end marketNot reported | Not reported | – | 33% year on year revenue growth |
Third quarter of 2026 and full year 2026 outlook
- RevenueThird quarter of 2026: $1.10 billion to $1.14 billion; full year 2026: approximately $4.4 billion
- NoteThird quarter of 2026 non-GAAP net income: $1.21 to $1.27 per diluted share
- NoteFull year 2026 non-GAAP net income per share: approach $5.00
- NoteThird quarter estimate and full year outlook do not include any contribution or impact from pending acquisitions.
What drove it
- Net sales grew 37% year on year, powered largely by ongoing robust demand in the Data Center and Networking end market.
- Data Center and Networking represented 40% of total net sales and increased 91% year on year.
- Medical, Industrial and Instrumentation revenue grew 33% year on year.
- Aerospace and Defense represented 37% of total net sales, grew 14% year on year, and had a healthy improvement in backlog.
- Total book to bill was 1.49, and total program backlog was over $1.7 billion.
- Gross margin was 21.1%, operating margin was 10.9%, and adjusted EBITDA margin was 16.6% of net sales.
Concerns
- The second quarter included an unrealized loss on derivative instruments of 13,994 (In thousands).
- The second quarter included a loss on extinguishment of debt of 747 (In thousands).
- Third-quarter and full-year outlook exclude any contribution or impact from pending acquisitions.
- The company stated that future non-GAAP earnings per diluted share exclude restructuring actions, impairment charges, unusual gains and losses including but not limited to unrealized foreign exchange translation, and tax adjustments.
What to watch
- Third-quarter net sales outlook of $1.10 billion to $1.14 billion.
- Third-quarter non-GAAP net income outlook of $1.21 to $1.27 per diluted share.
- Full-year 2026 net sales expectation of approximately $4.4 billion and non-GAAP net income per share expected to approach $5.00.
- Continued Data Center and Networking demand and the pace of AI-related demand.
- Aerospace and Defense backlog and projected priority defense programs.
- Expected third-quarter 2026 closing of the Swiss Technology Group AG and ILFA GmbH acquisitions.
Balance sheet and cash flow
- Cash and cash equivalents: $507,905 (In thousands) as of June 29, 2026; $501,234 (In thousands) as of December 29, 2025.
- Accounts receivable, net: 720,143 (In thousands) as of June 29, 2026; 563,741 (In thousands) as of December 29, 2025.
- Contract assets: 596,036 (In thousands) as of June 29, 2026; 468,006 (In thousands) as of December 29, 2025.
- Inventories: 307,972 (In thousands) as of June 29, 2026; 250,057 (In thousands) as of December 29, 2025.
- Total current assets: 2,249,899 (In thousands) as of June 29, 2026; 1,855,406 (In thousands) as of December 29, 2025.
- Property, plant and equipment, net: 1,187,809 (In thousands) as of June 29, 2026; 1,010,710 (In thousands) as of December 29, 2025.
- Total assets: 4,415,709 (In thousands) as of June 29, 2026; 3,840,331 (In thousands) as of December 29, 2025.
- Short-term debt, including current portion of long-term debt: $4,000 (In thousands) as of June 29, 2026; $3,815 (In thousands) as of December 29, 2025.
- Accounts payable: 812,987 (In thousands) as of June 29, 2026; 543,538 (In thousands) as of December 29, 2025.
- Contract liabilities: 186,770 (In thousands) as of June 29, 2026; 175,627 (In thousands) as of December 29, 2025.
- Total current liabilities: 1,263,967 (In thousands) as of June 29, 2026; 962,197 (In thousands) as of December 29, 2025.
- Long-term debt, net of discount and issuance costs: 969,456 (In thousands) as of June 29, 2026; 912,336 (In thousands) as of December 29, 2025.
- Total long-term liabilities: 1,217,314 (In thousands) as of June 29, 2026; 1,115,881 (In thousands) as of December 29, 2025.
- Total stockholders’ equity: 1,934,428 (In thousands) as of June 29, 2026; 1,762,253 (In thousands) as of December 29, 2025.
- Total liabilities and stockholders’ equity: 4,415,709 (In thousands) as of June 29, 2026; 3,840,331 (In thousands) as of December 29, 2025.
- Cash flow from operations was $96.4 million, or 9.6% of net sales.
- TTM announced a $1.0 billion revolver and an upsized Term Loan B to increase balance sheet flexibility and provide additional capacity for organic and inorganic investments.
Analysis
TTM reported record quarterly net sales of $1.0 billion, up 37% year on year from $730.6 million. The release attributes the growth largely to continued AI demand in Data Center and Networking, which represented 40% of total net sales and increased 91% year on year. Medical, Industrial and Instrumentation grew 33% year on year, while Aerospace and Defense represented 37% of total net sales, grew 14% year on year, and recorded a healthy improvement in backlog. Total book to bill was 1.49 and total program backlog was over $1.7 billion.
Profitability improved alongside sales. GAAP gross margin was 21.1%, compared with 20.3% in the second quarter of 2025, while GAAP operating margin was 10.9%, compared with 8.5%. GAAP operating income was $109.1 million versus $61.8 million, and GAAP net income was $83.0 million, or $0.77 per diluted share, versus $41.5 million, or $0.40 per diluted share. Adjusted EBITDA was $166.8 million, or 16.6% of net sales, compared with $109.7 million, or 15.0% of net sales.
Non-GAAP profitability also reached a quarterly record. Non-GAAP net income was $106.9 million, or $0.99 per diluted share, compared with $60.8 million, or $0.58 per diluted share, in the prior-year quarter. Cash flow from operations was $96.4 million, or 9.6% of net sales. The quarter also included an unrealized loss on derivative instruments of 13,994 (In thousands) and a loss on extinguishment of debt of 747 (In thousands).
Balance-sheet resources included cash and cash equivalents of $507,905 (In thousands) and long-term debt, net of discount and issuance costs, of 969,456 (In thousands) as of June 29, 2026. Management cited a 0.9x net leverage ratio. The company announced a $1.0 billion revolver and an upsized Term Loan B, which it said provide flexibility and capacity for organic and inorganic investments. It expects its acquisitions of Swiss Technology Group AG and ILFA GmbH to close in the third quarter of 2026.
For the third quarter, TTM estimates net sales of $1.10 billion to $1.14 billion and non-GAAP net income of $1.21 to $1.27 per diluted share. For full-year 2026, it now expects approximately $4.4 billion of net sales and non-GAAP net income per share to approach $5.00. Both the third-quarter estimate and full-year outlook exclude contribution or impact from pending acquisitions.
Management, verbatim
We delivered another record high quarterly net sales and non-GAAP EPS, reflecting the strength of our strategic business model, positive market demand trends across end markets, and operational excellence from our employees. Revenues grew 37% year on year, powered largely by ongoing robust demand in the Data Center and Networking end market, which increased 91% year on year. Our Medical, Industrial and Instrumentation end market experienced 33% year on year revenue growth, and our Aerospace and Defense end market delivered 14% year on year revenue growth and a healthy improvement in backlog, reflecting our positive alignment with projected priority defense programs.
Edwin Roks, President & CEO of TTM Technologies, Inc.
Adjusted EBITDA margin was a healthy 16.6%, providing evidence that our margin expansion efforts are currently working. Cash from operations was $96.4 million and our net leverage ratio is 0.9x.
Edwin Roks, President & CEO of TTM Technologies, Inc.
Looking forward, we are excited about TTM’s strategic position given our strong existing customer momentum in addition to our announced agreements to acquire Swiss Technology Group AG and ILFA GmbH, as part of our entry into Europe, which we expect to close in the third quarter of 2026.
Edwin Roks, President & CEO of TTM Technologies, Inc.
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results versus prior guidance is unavailable.
- Prior-quarter comparisons for reported financial metrics were not provided.
- Dollar revenue by Data Center and Networking end market was not provided.
- Dollar revenue by Aerospace and Defense end market was not provided.
- Revenue and percentage of total net sales for Medical, Industrial and Instrumentation were not provided.
- Free cash flow was not provided.
- Capital expenditures were not provided.
- Share repurchases and dividends were not provided.
- Third-quarter and full-year gross-margin, operating-expense, and tax-rate guidance were not provided.
- The filing text provided is truncated following the beginning of an additional supplemental-data table; metrics contained only in the omitted portion cannot be captured.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.