It has been about a month since the last earnings report for TTM Technologies (TTMI). Shares have lost about 15.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TTM due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TTMI Q2 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
TTM Technologies reported second-quarter 2026 non-GAAP earnings of 99 cents per share, up 70.7% year over year. The figure beat the Zacks Consensus Estimate by 7.61%.
Revenues rose 37.4% to $1 billion, surpassing the consensus estimate by 4.1%. Robust AI-related demand in the Data Center and Networking market supported growth, while the total book-to-bill ratio improved to 1.49.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.25% due to these changes.
VGM Scores
Currently, TTM has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 #1 (Strong 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).