Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 6 quarters
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TTM's record quarter and raised guidance underscore the accelerating demand for advanced PCBs in AI data center buildouts, with data center/networking revenue up 91% YoY and expected to more than double for the full year. The N+M technology ramp and capacity expansions in Syracuse and Penang position TTM to capture a larger share of the AI infrastructure supply chain, while the European acquisitions add long-cycle A&D and medical capabilities that could further diversify its exposure.
TTM delivered record Q2 results with net sales of $1.0 billion, up 37% year-over-year, and non-GAAP EPS of $0.99, up 71%. Growth was led by data center/networking (+91% YoY), medical/industrial/instrumentation (+33% YoY), and aerospace/defense (+14% YoY), while automotive declined modestly. Adjusted EBITDA margin expanded to 16.6% on favorable mix and operating leverage. The company booked significant A&D orders including Golden Dome and multiple munition programs, with book-to-bill of 1.3 and backlog of $1.7 billion. Management also announced the pending acquisitions of Swiss Technology Group and ILFA in Europe, expected to close in Q3.
Management raised full-year 2026 guidance to approximately $4.4 billion in sales and non-GAAP EPS approaching $5.00, up from prior expectations, with Q3 guided to $1.10–$1.14 billion and EPS of $1.21–$1.27. The second half will be driven by the ramp of N+M asymmetrical PCBs, with roughly $600 million of N+M revenue expected in H2 (about one-third in Q3, two-thirds in Q4) and improving yields supporting margin expansion. Management reiterated confidence in 15–20% organic revenue growth for 2027–2028 and expects to provide more detail next quarter. The company is also ramping Ultra-HDI at the new Syracuse facility starting in Q3, with full capacity expected by 2028, and plans to close the acquisitions of STG and ILFA in Q3, establishing a European footprint. Management noted continued strength in AI and defense demand, with A&D full-year growth now expected in the low-to-mid teens and data center/networking sales expected to more than double year-over-year.
“We achieved sales of $1 billion, our first quarterly result reaching that threshold, and non-GAAP EPS of $0.99 per diluted share, both above our guidance and both all-time quarterly highs.”
on Record quarter
“We are tracking well ahead of our previously communicated plan to achieve at least $4 billion in net sales in 2026, and our earnings for 2026 are exceeding our prior expectations as well as Dan will share later in his comments.”
on Guidance raise
“We are also pleased to share that business proposals for this end market are at an all-time high with over $7 billion of potential business currently qualified in our strategic pipeline.”
on A&D pipeline
Can you talk about the impact you may be assuming on revenues and margins from the N+M scale-up in Q3?
Edwin noted that N+M is ramping well with yields better than expected, and roughly $600 million of N+M revenue is expected in H2 (about one-third in Q3, two-thirds in Q4). Dan added that margins will improve as yields improve through the quarter, and this is already reflected in guidance.
Any update on the Wisconsin facility ramp and your latest thinking on that?
Edwin said they are not in a rush; the site will host an innovation center near Chippewa Falls, and they will start some production there. The site is available for data center customers to visit, and they may ask for contributions. They have time to decide on A&D use, and the site cost less than $20 million, so it's not a burden.
What about supply chain of T-glass and other materials needed for your most sophisticated PCB serving the data center vertical?
Edwin acknowledged that suppliers are focusing more on high-end materials, which is causing some longer lead times in lower-end segments like automotive. However, for high-end materials, they are still able to get decent lead times and have not seen customers suffer. The effect is more severe in lower-end materials.