TTM earnings reached quarterly records for sales and non-GAAP diluted profit in the third quarter of 2026, as data-center demand helped drive 60% year-over-year revenue growth. The electronics manufacturer reported $1.2 billion in sales on October 22 and introduced a preliminary 2027 revenue forecast of $6.5 billion to $6.75 billion, excluding acquisitions that have not yet closed.
Key Takeaways
- Third-quarter GAAP net income rose to $84.8 million, while adjusted EBITDA margin reached 20.1%.
- Data Center and Networking sales increased 115%, with continued AI demand supporting the business.
- Guidance includes completed STG and Epiq acquisitions, but excludes the proposed $650 million Ophir Optics purchase and other pending deals.
Table of Contents
- TTM earnings show profit growth and wider margins
- Data-center demand leads broad end-market growth
- Outlook includes completed deals, not pending purchases
- Acquisition pipeline puts financing in focus
- Conclusion
TTM earnings show profit growth and wider margins
TTM’s third-quarter 2026 results announcement put GAAP net income at $84.8 million, or $0.79 per diluted share, for the quarter ended September 28. That compared with $53.1 million, or $0.50 per diluted share, a year earlier.
Operating income more than doubled to $162.3 million from $71.9 million. Adjusted EBITDA also roughly doubled, reaching $242.3 million, while its margin increased to 20.1% from 16.1%. The four-percentage-point expansion meant TTM converted a larger share of sales into adjusted operating earnings.
Non-GAAP net income was $157.8 million, or $1.46 per diluted share, compared with $71.0 million, or $0.67 per share. These adjusted measures exclude specified expenses and are not substitutes for GAAP results.
TTM described the release’s financial results as preliminary and said final figures in its Form 10-Q could differ following closing procedures, adjustments and its independent accountant’s review.
| Item | Details |
|---|---|
| Q4 2026 sales guidance | $1.42 billion–$1.44 billion |
| Q4 2026 non-GAAP diluted EPS guidance | $1.77–$1.83 |
| Full-year 2026 sales guidance | $4.47 billion–$4.49 billion |
| Full-year 2026 non-GAAP diluted EPS guidance | $4.97–$5.03 |
| Preliminary 2027 sales forecast | $6.5 billion–$6.75 billion |
| Preliminary 2027 non-GAAP diluted EPS forecast | $8.10–$8.90 |
Data-center demand leads broad end-market growth
Data Center and Networking accounted for 41% of total sales, supported by continued AI demand. Chief Executive Edwin Roks said revenue in that end market rose 115% year over year, outpacing Medical, Industrial and Instrumentation growth of 97% and Aerospace and Defense growth of 21%.
Aerospace and Defense represented 34% of quarterly sales, with a $2.0 billion program backlog. TTM reported an overall book-to-bill ratio of 2.13, indicating that orders exceeded sales during the quarter.
Operating cash flow totaled $154.7 million, equivalent to 12.9% of sales. Roks said cash generation gave management confidence in handling leverage associated with acquisitions and capital investments.
Outlook includes completed deals, not pending purchases
TTM’s fourth-quarter and full-year 2026 outlook now include contributions from Swiss Technology Group and Epiq Solutions, along with associated financing costs. Its initial 2027 forecast uses the same distinction: completed acquisitions are included, while planned or potential purchases remain outside the estimates.
That scope matters when comparing the forecast with current results. The expected revenue increase is not presented as a measure of organic growth alone, and the pending acquisition pipeline is separate from management’s published guidance.
All earnings-per-share forecasts are non-GAAP. TTM did not provide corresponding GAAP forecasts, saying that potentially material adjustments, including restructuring charges, unusual gains and losses, and tax items, could not be predicted with reasonable certainty.
Acquisition pipeline puts financing in focus
TTM announced plans on October 19 to buy Ophir Optics from MKS for $650 million in cash. It expects to fund the proposed transaction through cash on hand, future cash flow and borrowings under its existing revolving credit facility.
The company also agreed to acquire UK manufacturers Merlin Circuit Technology and Merlin Flex for an undisclosed amount. That transaction remains subject to regulatory approvals and is expected to close in the fourth quarter of 2026. Its previously announced purchase of German circuit-board manufacturer ILFA is also expected to close that quarter.
After Epiq closed on September 30, TTM’s net leverage ratio was 2.8 times pro forma adjusted trailing-12-month EBITDA. Roks said management expects leverage to reach its target range of 1.5 to 2.0 times by the anticipated Ophir closing date. That is a management expectation, not an achieved reduction.
Conclusion
The next milestones are TTM’s fourth-quarter performance against its published guidance and the expected fourth-quarter closings of the Merlin and ILFA transactions. Those pending purchases remain outside the current outlook.
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