Benchmark Electronics reported first‑quarter 2026 revenue of $677 million, up 7% from $632 million in Q1 2025, and GAAP diluted earnings per share of $0.36, beating the consensus estimate of $0.31. Non‑GAAP diluted EPS of $0.58 also surpassed the $0.56 estimate, a beat of $0.02 or roughly 3.6%.
Operating margin improved to 4.8% on a non‑GAAP basis, up from 4.6% in the prior quarter, while GAAP operating margin rose to 3.2% from 2.9% in Q4 2025 and 1.9% in Q1 2025. The non‑GAAP lift reflects stronger mix and cost control, whereas the GAAP improvement is driven by lower variable compensation and better pricing in high‑margin segments.
Segment performance was a key driver of the results. Advanced Computing & Communications revenue grew 41% YoY, Medical revenue increased 24% YoY, and the Semiconductor Capital Equipment (Semi‑Cap) segment returned to double‑digit sequential growth. Industrial and Aerospace & Defense revenue declined 2–3% YoY, offsetting the gains in the high‑margin segments.
Management raised its full‑year revenue growth outlook to 9–10% from the prior mid‑single‑digit expectation and guided Q2 revenue to $700–$740 million with diluted EPS of $0.65–$0.71. The company also confirmed a 2026 capital‑expenditure plan of $140–$180 million, based on 2.0–2.5% of revenue, a significant increase from the previously cited $60–$70 million.
"Our first quarter results have increased our confidence in 2026 and are a clear sign of the benefits from the customer‑first initiatives we began implementing over two years ago and continue to build on today," said President and CEO David Moezidis. "We are seeing improvement across a broad cross‑section of our business, led by strengthening in Semi‑Cap and continued momentum in AC&C and Medical. This positions us for sequential and year‑over‑year growth through the remainder of the year, with full‑year revenue now expected to be in the 9–10% range, up from prior expectations of mid‑single‑digit growth."
"Revenue in the quarter was $677 million, up 7% year‑over‑year and above the midpoint of our prior guidance of $655 million to $695 million. Non‑GAAP EPS was $0.58, which was at the higher end of our prior guidance range of $0.53 to $0.59," said Executive VP, CFO and Principal Accounting Officer Bryan Schumaker.
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