TTM Technologies Q2 Revenue Rises 37.4% on Data Center Demand

Key Facts

TTM Technologies increased second-quarter 2026 revenue 37.4% from a year earlier to $1.0041 billion, principally on Data Center and Networking demand. The company said revenue from that end market grew 91% as AI data center construction and related applications continued to expand. Non-GAAP diluted earnings reached a company quarterly record of $0.99 a share. Together, sales growth and earnings per share frame the operating case investors must assess for TTMI. The next test is whether the company can turn that demand into durable profits as production grows.

The results cover the quarter ended June 29, 2026, against the quarter ended June 30, 2025. Net sales rose to $1.0041 billion from $730.6 million, an increase of $273.4 million. The 37.4% growth rate therefore compares the same fiscal quarter across years; it is not a sequential quarterly change. That comparison helps distinguish the expansion of the business from normal fluctuations between reporting periods. It also shows the scale of additional demand the company had to manufacture and deliver within a year.

Data center growth matters to TTMI because infrastructure spending becomes demand for the electronic interconnect products the company manufactures. Its businesses include printed circuit boards, substrates and advanced interconnect products used in complex electronic systems. As sales of products requiring more advanced manufacturing rise, product mix can influence margins alongside production volume. Revenue growth alone does not guarantee comparable earnings growth, because operating and investment costs can move at different rates. Investors therefore need to read the demand increase together with margin and cash-flow results rather than as a stand-alone measure of return.

Data Center and Networking accounted for 40% of quarterly net sales, up from 29% in the comparable period after the prior-year figures were recast. The larger share shows how much more influential this end market has become in the company’s revenue mix. Medical, Industrial and Instrumentation revenue grew 33%, while Aerospace and Defense revenue rose 14%, the company said. Automotive’s share of sales fell to 8% from 11%; those figures compare revenue shares, not the rate of change in automotive revenue. The company recast historical end-market figures after combining data center computing and networking, making the stated comparison base essential when interpreting these percentages.

The contribution of each business is also visible in the company’s two reported operating segments. Commercial segment sales reached $621.6 million, up from $395.6 million a year earlier, an increase of 57.1%. Aerospace and Defense segment sales rose to $382.8 million from $335.2 million, a gain of 14.2%. The different growth rates show that Commercial supplied most of the quarter’s increase in sales. Segment sales do not exactly equal consolidated net sales before intersegment transactions are eliminated, so adding the segments without that adjustment would overstate the companywide total.

Higher volume, better mix and improved execution helped lift Commercial segment operating income to $112.7 million from $60.1 million a year earlier. Its operating margin rose to 18.1% from 15.2%, showing that the sales gain coincided with improved profitability within the segment. Aerospace and Defense operating margin increased to 16.7% from 14.4%. Comparing the two margins helps separate the effect of the type of business sold from sales growth alone. It does not establish that a quarterly improvement will automatically recur, since demand mix and execution costs can change.

At the company level, gross profit increased to $211.9 million from $148.1 million a year earlier. Gross margin widened to 21.1% from 20.3%, with the company citing volume, favorable product mix and better execution. Adjusted earnings before interest, taxes, depreciation and amortization reached $166.8 million, or 16.6% of sales, versus $109.7 million and 15.0% a year earlier. These measures connect stronger demand to the return earned on each dollar of sales. Gross margin and adjusted EBITDA margin remain distinct measures, capturing different stages in the conversion of revenue into profit.

GAAP net income was $83.0 million, or $0.77 per diluted share, compared with $41.5 million and $0.40 a year earlier. Non-GAAP net income was $106.9 million, or $0.99 per diluted share, against $60.8 million and $0.58. The difference reflects adjustments for items identified by the company, so adjusted EPS is not interchangeable with reported GAAP earnings. The company recorded an unrealized loss of about $14.0 million on a derivative instrument during the quarter. That charge illustrates why non-operating items matter when investors compare earnings growth with growth in the underlying business.

Operations generated $96.4 million in cash during the quarter, a separate test of performance from accounting earnings. Operating cash flow for the first half of 2026 totaled $118.2 million, compared with $87.1 million a year earlier. The quarterly book-to-bill ratio was 1.49, indicating that new orders exceeded shipments under that measure. Aerospace and Defense program backlog exceeded $1.7 billion, pointing to work contracted for future periods. Backlog does not all become revenue in one quarter, while the timing of customer collections still affects the cash available to finance expansion.

TTMI closed at $126.98 on September 24, 2026, according to EL7 data, after trading between $119.44 and $128.88 that session. It had closed at $125.82 on September 23, providing an immediate reference point for the following day’s trading. One session cannot establish that an earnings release issued in August, or any single operating factor, caused the price move. For investors, the central question is whether data center growth can persist while margins and cash generation hold up. Expectations rising faster than execution would leave the shares more exposed to a subsequent slowdown.

In its August earnings release, the company projected third-quarter 2026 sales of $1.10 billion to $1.14 billion and non-GAAP EPS of $1.21 to $1.27. It also forecast approximately $4.4 billion in 2026 sales and non-GAAP EPS approaching $5.00. Those forecasts excluded the effect of acquisitions that were pending when the release was issued. The third-quarter report will test whether expected sales growth and margin improvement materialize alongside cash generation. Results below the stated ranges would weaken the current growth case; delivery within them, supported by strong operating cash flow, would strengthen it.