Benchmark Raises 2026 Revenue Growth Forecast to 16% After Posting $811 Million in Third Quarter
Key Facts
Benchmark raised its 2026 revenue growth forecast to about 16% and said annual revenue would exceed the $3 billion level it set in the previous quarter, after posting record revenue of $811 million in the third quarter ended September 30. Revenue rose 19% year over year, while diluted earnings per share were $0.47 under generally accepted accounting principles and $0.84 on the adjusted measure, which excludes certain items. Revenue topped analysts’ estimate of $776.25 million, and adjusted earnings per share also exceeded the $0.79 estimate. The results underpin the company’s higher annual outlook, after it announced its goal of exceeding $3 billion in the previous quarter. Chief Executive David Mozeides said, "Demand is broadening across our portfolio, and booking momentum remains healthy."
The higher annual growth forecast follows a series of upgrades during the year. In April, Benchmark forecast revenue growth of between 9% and 10%, compared with an earlier forecast for growth in the mid-single digits. In July, it raised the forecast to about 13%, targeting annual revenue of $3 billion for the first time in the company’s history. The current forecast of about 16% exceeds that level, which the company had treated as a target in the previous quarter. Second-quarter results, with revenue of $756 million, up 18% year over year, and adjusted earnings per share of $0.75, up 36%, showed continued business growth ahead of September’s results. Mozeides said at the time that revenue and earnings had exceeded the high end of previous guidance, with bookings posting another quarterly record.
For the fourth quarter, Benchmark expects revenue of between $815 million and $855 million, diluted GAAP earnings per share of between $0.58 and $0.64, and between $0.85 and $0.91 on the non-GAAP adjusted measure. The distinction between the two measures means the higher range cited in initial coverage refers to adjusted earnings, while the GAAP range is lower. The forecast follows adjusted earnings of $0.84 in the third quarter, five cents above analysts’ estimate. The company also reported third-quarter revenue that exceeded expectations by $34.75 million, or 4.48%. Third-quarter GAAP earnings per share were $0.47, up 21% from a year earlier, while adjusted earnings rose 35%.
The company’s margins improved alongside sales growth. Adjusted operating margin rose to 5.5% in the third quarter from 4.8% a year earlier, while adjusted gross margin increased to 10.5% from 10.1%. The figures show year-over-year improvement in both operating and gross profitability. By business mix, semiconductor capital equipment led with revenue of $241 million. Industrial was next at $172 million, followed by medical at $138 million, while advanced computing and communications revenue was $132 million. In its second-quarter results, the company had pointed to improvement in semiconductor capital equipment and continued momentum in advanced computing and communications and medical.
Benchmark shares closed at $73.36 on October 28, up 3.76% in regular trading, before falling 0.1% after the close to $73.29. The after-hours move followed the third-quarter results and updated outlook; the figures provided do not offer a separate explanation for the share-price move. The company had scheduled its third-quarter results conference call for October 28 at 5 p.m. Eastern time. Its upcoming events include the Baird Global Industrial Conference on November 11, followed by the Wells Fargo Annual Technology, Media & Telecom Summit on December 8. These events give investors two upcoming opportunities to hear from the company after its annual forecast increase.