TTMI Q2 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

TTMI’s Q2 Top-Line Details

In the reported quarter, Aerospace & Defense revenues increased 14.2% year over year to $382.8 million. Commercial revenues surged 57.1% to $621.6 million, reflecting strong demand across the company’s commercial end markets.

Data Center and Networking represented 40% of quarterly sales, up from 29% year over year. Aerospace and Defense accounted for 37%, compared with 45% in the prior-year quarter. Medical, Industrial and Instrumentation contributed 15%, while Automotive represented 8%.

Management stated that Data Center and Networking revenues climbed 91% year over year, driven by continued AI demand. Medical, Industrial and Instrumentation revenues grew 33%, while Aerospace and Defense benefited from alignment with priority defense programs.

TTMI’s Backlog and Booking Trends Strengthen

The company’s commercial 90-day backlog increased 144% year over year to approximately $0.9 billion. The commercial book-to-bill ratio reached 1.63, indicating that new orders exceeded shipments during the quarter.

Aerospace and Defense program backlog rose to more than $1.7 billion from $1.5 billion a year ago. The segment’s book-to-bill ratio improved to 1.30 from 0.71. Program bookings included the APS-153 Maritime Surveillance Radar, the ATP Sensor System for Targeting and Surveillance, Golden Dome and multiple restricted programs.

TTMI also received its first development contract for an active electronically scanned array Detect and Avoid radar system for the Advanced Air Mobility market. Its first Golden Dome-related award supports a potential pipeline exceeding $600 million across interconnect and integrated electronics solutions.

TTMI’s Operating Details

In the second quarter of 2026, TTM Technologies reported a non-GAAP gross margin of 21.9%, which expanded 100 basis points (bps) year over year, with non-GAAP gross profit of $219.8 million.

Selling and marketing expenses increased 19.6% year over year to $25.5 million. General and administrative expenses rose 24.9% year over year to $62.1 million. Research and development expenses increased 13.8% year over year to $8 million.

Non-GAAP operating income increased 70% to $138.4 million. The corresponding margin expanded 270 basis points to 13.8%.

Adjusted EBITDA rose 52% to $166.8 million, while adjusted EBITDA margin increased 160 basis points to 16.6%.

TTMI’s Balance Sheet & Cash Flow

As of June 29, 2026, TTM Technologies’ cash and cash equivalents were $507.9 million, compared with $410 million as of March 30, 2026.

Total debt, including short- and long-term borrowings, increased to $973.5 million, up from $915.7 million sequentially.

In the reported quarter, cash flow from operations was $96.4 million. Net capital expenditures were $50.4 million, resulting in free cash flow of $46 million.

TTMI’s Q3 & 2026 Guidance

For the third quarter of 2026, TTM Technologies expects revenues between $1.10 billion and $1.14 billion. Non-GAAP earnings are projected between $1.21 and $1.27 per share.

For 2026, management now anticipates revenues of approximately $4.4 billion and non-GAAP earnings per share approaching $5. The outlook excludes contributions or other impacts from the pending STG and ILFA acquisitions, which are expected to close in the third quarter.

TTMI’s Zacks Rank & Stocks to Consider

TTM Technologies currently carries a Zacks Rank #4 (Sell).

Kimball Electronics KE, Quantum QMCO and Lumentum LITE are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13.

Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026.

Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11.

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