TTM Technologies, Inc. TTMI reported third-quarter 2026 non-GAAP earnings of $1.46 per share, up 117.9% year over year. The figure beat the Zacks Consensus Estimate by 16.8%.
Revenues jumped 59.9% to $1.2 billion, surpassing the Zacks Consensus Estimate by 6.6%. Strong AI-related demand, defense spending and industrial orders supported growth. The total book-to-bill ratio reached 2.13, indicating that orders outpaced sales.
TTMI's Q3 Top-Line Details
In the reported quarter, Aerospace & Defense segment revenues rose 20.9% year over year to $416.5 million. Commercial segment revenues surged 92.7% to $787.9 million, supported by expanding data center and industrial demand.
Data Center and Networking accounted for 41% of sales, compared with 30% a year ago. Aerospace and Defense contributed 34%, down from 45%. Medical, Industrial and Instrumentation represented 18%, while Automotive made up the remaining 7%.
TTM Technologies, Inc. Price, Consensus and EPS Surprise
TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote
Data Center and Networking end-market sales climbed 115% year over year, driven by demand for advanced printed circuit boards used in AI infrastructure. Medical, Industrial and Instrumentation revenues rose 97%, while Automotive revenues grew 11%.
TTM Technologies’ Backlog and N+M Ramp Gather Pace
TTMI's 90-day backlog reached $1.3 billion, compared with $610 million a year earlier. Aerospace and Defense program backlog hit a record $2 billion, up from just under $1.5 billion. Commercial and defense book-to-bill ratios stood at 2.5 and 1.6, respectively.
Defense bookings included SPY-6 surface ship radar, APS-143 maritime surveillance radar, Golden Dome and restricted programs. Management said it already has visibility into roughly 65% of projected 2027 Aerospace and Defense revenues.
The advanced N+M circuit board technology represents about 30% of Data Center and Networking activity and is expected to reach roughly 50% in 2027. Management attributed the slower ramp of one major program to customer scheduling rather than yield or technical problems.
TTMI's Q3 Operating Details
Non-GAAP gross margin expanded 330 basis points year over year to 24.8%, benefiting from stronger volumes, a favorable mix and improved execution at the Penang facility.
Non-GAAP operating income more than doubled to $209 million, lifting the operating margin 510 basis points to 17.4%.
Non-GAAP selling and marketing expenses increased to $23.2 million from $20.5 million. General and administrative expenses rose to $57.3 million from $42.1 million, while research and development expenses reached $9.5 million versus $6.9 million.
Adjusted EBITDA doubled to $242.3 million, with the corresponding margin rising 400 basis points to 20.1%. On a GAAP basis, net income increased to $84.8 million, or 79 cents per share, from $53.1 million, or 50 cents, a year earlier.
TTMI's Balance Sheet and Cash Flow
As of Sept. 28, 2026, TTM Technologies’ cash and cash equivalents were $876.3 million, compared with $507.9 million as of June 29, 2026.
Combined short- and long-term debt stood at approximately $1.64 billion, up from $973.5 million sequentially.
In the reported quarter, operating cash flow increased to $154.7 million from $141.8 million a year ago. Net capital expenditures declined to $79.9 million from $99.2 million, helping free cash flow improve to $74.8 million from $42.6 million.
TTMI's Acquisition and Investment Plans
TTMI completed the Swiss Technology Group and Epiq Solutions acquisitions, broadening its medical and defense capabilities. The company is also pursuing the purchases of Germany-based ILFA and two U.K. printed circuit board businesses.
The planned $650 million acquisition of Ophir Optics from MKS is expected to close in the second quarter of 2027. It would add infrared and laser optics capabilities to TTM Technologies' sensing portfolio. Separately, management announced an additional $400 million capacity expansion to support N+M demand, with production focused on 2028.
TTMI's Q4 & 2027 Guidance
For the fourth quarter of 2026, TTM Technologies projects revenues of $1.42 billion to $1.44 billion and non-GAAP earnings of $1.77 to $1.83 per share. Data Center and Networking is expected to generate about 49% of quarterly sales. For full-year 2026, the company now expects revenues of $4.47 billion to $4.49 billion and non-GAAP earnings of $4.97 to $5.03 per share.
Preliminary 2027 guidance calls for revenues of $6.5 billion to $6.75 billion and non-GAAP earnings of $8.1 to $8.9 per share. The forecasts include closed acquisitions and related financing but exclude pending transactions.
TTMI’s Zacks Rank & Stocks to Consider
TTM Technologies currently carries a Zacks Rank #3 (Hold).
ASE Technology ASX, Commvault Systems CVLT and Fortinet FTNT are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, ASE Technology sports a Zacks Rank #1 (Strong Buy), while Commvault Systems and Fortinet carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
ASE Technology’s shares have surged 134.4% year to date. ASX is scheduled to report its third-quarter 2026 results on Oct. 29.
Commvault Systems’ shares have gained 33.9% year to date. CVLT is scheduled to report its fiscal second-quarter 2027 results on Oct. 27.
Fortinet’s shares have climbed 117.9% year to date. FTNT is slated to report its third-quarter 2026 results on Oct. 28.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TTM Technologies, Inc. (TTMI): Free Stock Analysis Report
CommVault Systems, Inc. (CVLT): Free Stock Analysis Report
Fortinet, Inc. (FTNT): Free Stock Analysis Report
ASE Technology Holding Co., Ltd. (ASX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).