Key Takeaways
- • Benchmark Electronics reported record third quarter fiscal 2026 revenue of $811 million, up 19% year-over-year, according to Investing.com UK's coverage of the October 28, 2026 presentation.
- • Non-GAAP diluted EPS reached $0.84, up 35% from $0.62 a year earlier, with EPS growth running at nearly twice the rate of revenue growth.
- • Management raised full-year 2026 revenue guidance to more than $3 billion, approximately 16% annual growth, and guided Q4 revenue to $815 million-$855 million with non-GAAP EPS of $0.85-$0.91.
- • The cash conversion cycle fell to 54 days from 77 days, driven by accounts payable days rising from 56 to 82, while the company generated $14 million in free cash flow and held a net cash position of $133 million.
- • Semiconductor capital equipment grew 30% to $241 million and Advanced Computing & Communications grew 50% to $132 million, while Aerospace & Defense was flat and management expects a return to growth in 2027.
Summary
Benchmark Electronics presented its third quarter fiscal 2026 results on October 28, 2026, reporting record revenue of $811 million, up 19% from the prior year, according to Investing.com UK. Non-GAAP earnings per share rose 35% to $0.84 from $0.62, reflecting operating leverage that drove earnings growth at almost twice the rate of sales. Operating margin improved to 5.5% from 4.8% a year earlier, and gross margin expanded to 10.5% from 10.1%. The company exceeded the high end of its prior guidance range on both revenue and earnings, with strength in four of its five business sectors.
Sequentially, revenue rose from $756 million in Q2 2026 and operating margin improved 30 basis points from 5.2%. The effective tax rate declined to 24.9% from 26.6%. Semiconductor capital equipment led segment growth at 30% year-over-year to $241 million, representing 16% of the revenue mix. Advanced Computing & Communications posted 50% growth to $132 million, Industrial rose 13% to $172 million, and Medical increased 9% to $138 million. Aerospace & Defense was flat at negative 1%, though management said the segment is positioned to return to growth in 2027.
The company generated $14 million in free cash flow and maintained a net cash position of $133 million, with more than $575 million in available revolving credit capacity. It returned $14 million to shareholders through buybacks and dividends. The cash conversion cycle improved to 54 days from 77 days, largely due to accounts payable days increasing to 82 from 56, while inventory days edged up to 78 from 75 to support 11 active manufacturing ramps.
For fourth quarter 2026, Benchmark guided to revenue of $815 million-$855 million, non-GAAP EPS of $0.85-$0.91, gross margin of 10.5%-10.7%, and operating margin of 5.5%-5.7%. Management expects continued acceleration in semiconductor capital equipment, with demand durability extending beyond 2027, and cited the Penang PT 4 facility ramp and Thailand capacity expansion, which is expected to complete in late 2027. Next-generation HPC opportunities in Advanced Computing are now expected to begin ramping in mid to late 2027. Management acknowledged risks including memory shortages extending to ASIC categories, elevated inventory, and variable compensation costs.
Shares closed at $73.36, up 3.76%, and were marginally lower after hours at $73.29, according to the article. The stock is up 73.6% over the past year but remains below its 52-week high of $100.41. The article also cites InvestingPro data showing a P/E ratio of 49.91 and gross margin of 10.3%, with the platform assessing the stock as overvalued relative to its Fair Value estimate.
Sequentially, revenue rose from $756 million in Q2 2026 and operating margin improved 30 basis points from 5.2%. The effective tax rate declined to 24.9% from 26.6%. Semiconductor capital equipment led segment growth at 30% year-over-year to $241 million, representing 16% of the revenue mix. Advanced Computing & Communications posted 50% growth to $132 million, Industrial rose 13% to $172 million, and Medical increased 9% to $138 million. Aerospace & Defense was flat at negative 1%, though management said the segment is positioned to return to growth in 2027.
The company generated $14 million in free cash flow and maintained a net cash position of $133 million, with more than $575 million in available revolving credit capacity. It returned $14 million to shareholders through buybacks and dividends. The cash conversion cycle improved to 54 days from 77 days, largely due to accounts payable days increasing to 82 from 56, while inventory days edged up to 78 from 75 to support 11 active manufacturing ramps.
For fourth quarter 2026, Benchmark guided to revenue of $815 million-$855 million, non-GAAP EPS of $0.85-$0.91, gross margin of 10.5%-10.7%, and operating margin of 5.5%-5.7%. Management expects continued acceleration in semiconductor capital equipment, with demand durability extending beyond 2027, and cited the Penang PT 4 facility ramp and Thailand capacity expansion, which is expected to complete in late 2027. Next-generation HPC opportunities in Advanced Computing are now expected to begin ramping in mid to late 2027. Management acknowledged risks including memory shortages extending to ASIC categories, elevated inventory, and variable compensation costs.
Shares closed at $73.36, up 3.76%, and were marginally lower after hours at $73.29, according to the article. The stock is up 73.6% over the past year but remains below its 52-week high of $100.41. The article also cites InvestingPro data showing a P/E ratio of 49.91 and gross margin of 10.3%, with the platform assessing the stock as overvalued relative to its Fair Value estimate.
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