TTM Technologies TTMI is scheduled to report second-quarter 2026 results after the market closes on Aug. 5.
For the second quarter of 2026, TTMI expects net sales of $930-$970 million. The Zacks Consensus Estimate for revenues is pegged at $964.55 million, indicating a 32.02% increase from the year-ago quarter’s reported figure.
TTM Technologies expects non-GAAP earnings between 82 cents and 88 cents per share. The consensus mark for earnings is pegged at 92 cents per share, down by 5 cents over the past 30 days. However, this marks strong year-over-year growth of 58.62%.
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The company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 9.49%.
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Q2 Earnings Whispers for TTMI Stock
Our proven model does not conclusively predict an earnings beat for TTM Technologies this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
TTMI has an Earnings ESP of -3.83% at present and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors Shaping TTMI’s Upcoming Results
TTMI continues to expand manufacturing capacity and invest aggressively to support AI and defense opportunities, requiring meaningful capital deployment across its global footprint. Despite reporting record first-quarter revenues, operating cash flow was only $21.7 million, reflecting the impact of higher working-capital requirements and ongoing growth investments. As these expansion initiatives continue, elevated capital spending is likely to have weighed on free cash flow and near-term financial flexibility during the second quarter of 2026.
TTM Technologies' automotive business remained a notable weak spot heading into the second quarter of 2026. Management said it continues to be highly selective in the automotive market, prioritizing higher-value, higher-margin products while reducing exposure to less attractive business. Although the company is supporting Tier 1 customers as they transition advanced technologies to adjacent markets, automotive revenues are still expected to account for only about 8% of second-quarter sales, with the earnings presentation also pointing to further rationalization in the segment. This ongoing weakness is expected to have partially offset stronger performance in other end markets and likely to have weighed on the quarter under review.
TTM Technologies' growing reliance on AI-driven markets may have increased near-term execution risk despite fueling revenue growth. Management noted that approximately 80% of net sales are tied to the AI and defense megatrends, while data center and networking revenues are expected to rise from 36% of first-quarter sales to 42% in the second quarter as customers continue building AI infrastructure. This increasing concentration makes quarterly performance more dependent on sustained AI spending and customer deployment schedules, which is expected to have heightened the company's exposure to execution and demand risks in the quarter to be reported.
However, TTM Technologies entered the second quarter with solid momentum in its aerospace and defense business, supported by strong bookings for key programs, including the LTAMDS Air Defense Radar, APS-153 maritime surveillance radar, ballistic missile detection and tracking systems, and its first confirmed booking supporting Golden Dome. The segment also delivered a book-to-bill ratio of 1.1 and maintained a program backlog of approximately $1.6 billion during the first quarter. With aerospace and defense expected to contribute 36% of second-quarter sales while delivering both sequential and year-over-year growth, this robust order pipeline is expected to have boosted the company's performance in the quarter under review.
TTMI’s Stock Price Performance & Valuation
Over the past three months, TTM Technologies stock has declined 26.7% compared with the industry’s 6.8% drop. It has also underperformed peers like OSI Systems OSIS, TE Connectivity TEL and nVent Electri NVT. During the same timeframe, OSI Systems and nVent Electri fell 21.8% and 5.5%, respectively, while TE Connectivity inched up 0.2%, highlighting TTMI's relatively weaker share price performance.
TTMI 3-Month Stock Performance
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From a valuation perspective, TTMI appears overvalued, as suggested by the Value Score of D. It trades at a trailing 12-month price-to-earnings ratio of 51.08X, significantly above the industry’s average of 20.98X. In comparison, peers trade at more moderate multiples, with OSI Systems (22.5X), TE Connectivity (18.99X) and nVent Electric (35.36X).
TTMI Trailing 12-Month P/E Ratio
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Investment Considerations on TTMI Stock
TTM Technologies' near-term outlook is clouded by several risks despite upbeat guidance. Aggressive investment in manufacturing capacity has pushed first-quarter free cash flow to negative $85 million, while foreign-exchange volatility and projected interest expense of about $10.6 million threaten earnings growth. The company's growing reliance on AI data center programs heightens concentration risk, and ongoing weakness in automotive, pricing pressure, elevated capital expenditures and fierce competition could constrain long-term returns. Even so, expanding AI data center deployments and a solid defense backlog could help offset these headwinds and support earnings growth over the longer term.
Conclusion
TTM Technologies is trading at a premium valuation, and investors may be better off waiting for a more attractive entry point. Elevated capital spending, weak free cash flow, automotive softness and increasing dependence on AI-driven demand add to near-term execution risks. Coupled with a negative Zacks Earnings ESP, the stock appears less attractive ahead of the second-quarter earnings release.
However, TTM Technologies remains well positioned to benefit from long-term investments in AI infrastructure and aerospace & defense. Expanding manufacturing capacity, a strong defense backlog and sustained demand for advanced interconnect and integrated electronics solutions are expected to support revenue growth and margin expansion over time.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).