A month has gone by since the last earnings report for TTM Technologies (TTMI). Shares have added about 18.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TTM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
TTMI Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
TTM Technologies reported first-quarter 2026 non-GAAP earnings per share (EPS) of 75 cents. The figure increased 50% from the year-ago quarter and beat the Zacks Consensus Estimate by 13.64%.
Revenues of $845.98 million increased 30.4% year over year and surpassed the consensus estimate of $783 million by 8.06%.
The strong performance was driven by robust demand in data center and networking markets tied to AI, along with solid backlog expansion, as reflected in a book-to-bill ratio of 1.41.
TTMI’s Q1 Top-Line Details
Aerospace & Defense sales rose 11.2% year over year to $351.7 million, while Commercial revenues grew 48.8% to $495.0 million, supported by continued defense program activity and bookings.
TTMI's end-market sales distribution in the reported quarter was dominated by Aerospace & Defense (40%), followed by Data Center and Networking (36%), Medical, Industrial and Instrumentation (16%) and Automotive (8%). Data Center and Networking revenues expanded significantly from 28% of total net sales in the year-ago quarter, driven by continued AI infrastructure demand from hyperscalers.
TTMI reported a first-quarter 2026 book-to-bill ratio of 1.41, with the Aerospace & Defense program backlog standing at $1.6 billion. The 90-day commercial backlog increased to $0.8 billion from $0.5 billion in the year-ago quarter, supported by a commercial book-to-bill of 1.65.
TTMI’s Operating Details
In the first quarter of 2026, TTM Technologies reported a non-GAAP gross margin of 22.3%, which expanded 150 basis points (bps) year over year, with non-GAAP gross profit of $188.7 million.
Selling and marketing expenses increased 17.5% year over year to $25.0 million. General and administrative expenses rose 57.0% year over year to $68.7 million. Research and development expenses declined 3.2% year over year to $7.8 million.
Adjusted EBITDA was $132.9 million, representing 15.7% of revenues, compared with $99.5 million or 15.3%, in the prior-year quarter.
Non-GAAP operating income surged 58.3% year over year to $108 million. As a percentage of revenues, the non-GAAP operating margin expanded 230 bps year over year to 12.8%.
The margin expansion reflects operating leverage and stronger contribution from higher-margin businesses such as data center and aerospace.
TTMI’s Balance Sheet & Cash Flow
As of March 30, 2026, TTM Technologies' cash and cash equivalents were $410 million, compared with $501.2 million as of Dec. 29, 2025. Total debt (short and long term) was $915.7 million, broadly unchanged sequentially from $916.2 million.
In the reported quarter, net cash provided by operating activities was $21.7 million. Capital expenditures of $106.8 million resulted in negative free cash flow of $85.1 million, reflecting ongoing capacity investments.
TTMI’s Q2 & 2026 Guidance
TTM Technologies expects second-quarter 2026 non-GAAP earnings between 82 cents and 88 cents per share. Net sales are anticipated to be between $930 million and $970 million.
For 2026, the company expects the growth trajectory established in the first half to continue at approximately the same pace in the second half of the year.
The outlook reflects continued strength in AI-driven data center demand and stable momentum in aerospace and defense markets.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 40.16% due to these changes.
VGM Scores
At this time, TTM has a great Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TTM has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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TTM Technologies, Inc. (TTMI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).