TTM Technologies Plunges 29% Despite Record Q3 Beat and Raised Outlook

Shares of TTM Technologies (TTMI) plunged about 29% on Thursday to roughly $72.66 in the afternoon, according to The Motley Fool, even after the circuit-board maker reported record third-quarter sales, beat earnings estimates and raised its 2026 outlook. Volume reached 12.5 million shares against an average of 2.7 million. Investors focused on fourth-quarter revenue guidance that came in slightly below Wall Street expectations, a major data center program slipping later, and the cost of the company's acquisition spree.

Third-quarter results

Net sales rose 60%, an all-time quarterly record, and CEO Edwin Roks said the company "delivered quarterly records for both net sales and non-GAAP EPS." Data Center & Networking, driven by AI demand, was 41% of sales and grew 115%. Aerospace & Defense, 34% of sales, grew 21% and ended the quarter with a $2.0 billion program backlog. Medical, Industrial & Instrumentation sales rose 97%. Total book-to-bill was 2.13.

Guidance

The 2027 preliminary range includes closed acquisitions but excludes planned deals. Guidance now includes the recently closed Epiq Solutions and Swiss Technology Group acquisitions and the related financing costs.

Why the stock fell

The Motley Fool attributed the drop to several factors. One is project timing: according to the call, one of TTM's three major N+M programs in Data Center & Networking is shifting later because of a customer's program schedule, which management said is not due to technical or manufacturing problems. The other two programs are performing well. The Fool, citing the call, also reported that Roks said lead times for critical materials are about 12 weeks and sometimes up to 24 weeks, and that financing for the Epiq and Ophir acquisitions is expected to add roughly $20 million a quarter in interest. TTM reported Q3 interest expense of $12.8 million.

Investors are also weighing leverage. Net leverage was 2.8x pro forma adjusted EBITDA at the end of September, and TTM expects to return to its 1.5x to 2.0x target by the expected close of its $650 million cash purchase of Ophir Optics from MKS, announced Oct. 19 at 10.3x expected 2027 adjusted EBITDA. Management said that deal should close in the second quarter of 2027. Merlin Circuit Technology and ILFA GmbH are also pending and excluded from guidance.

Where the stock stands

By our calculation, the pre-earnings close was about $102.15, from the $72.66 price and $29.49 decline in the Fool's quote, and the stock is about 67% below its 52-week high of $223.83. Its 52-week low is $55.44. TTM also plans another $400 million of capacity investment from the fourth quarter into early 2028, mainly for N+M, funded from operating cash flow.

Sources: TTM Technologies third-quarter 2026 earnings release (Oct. 22, SEC Exhibit 99.1); The Motley Fool (Oct. 22); Investing.com and MarketBeat earnings call coverage (Oct. 22). Consensus figures and the intraday price are as reported by those outlets. This is informational, not a recommendation to buy or sell.