Benchmark Electronics | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 755.98 M

Revenue: As of FY2026 Q2, the actual value is USD 755.98 M, beating the estimate of USD 720 M.

EPS: As of FY2026 Q2, the actual value is USD 0.55.

EBIT: As of FY2026 Q2, the actual value is USD 32.01 M.

Overall Performance

Benchmark Electronics, Inc. reported that its non-GAAP operating income grew by 30% year-over-year (YoY) to $39 million in Q2 2026 . The non-GAAP gross margin for Q2 2026 was 10.5%, an increase from 10.2% in Q2 2025 . The non-GAAP operating margin improved by 50 basis points YoY, reaching 5.2% . Operating income and EPS are projected to grow 1.5 to 2 times faster than revenue in 2026 .

Gross Margin (GAAP)

GAAP gross margin was 10.4% in Q2 2026, 10.2% in Q1 2026, and 10.1% in Q2 2025 .

Operating Margin (GAAP)

GAAP operating margin was 4.0% in Q2 2026, 3.2% in Q1 2026, and 3.2% in Q2 2025 .

Net Income

Net Income (GAAP)

GAAP net income was $19,882 thousand for Q2 2026, $13,023 thousand for Q1 2026, and $972 thousand for Q2 2025 . For the six months ended June 30, 2026, GAAP net income was $32,905 thousand, compared to $4,616 thousand for the six months ended June 30, 2025 .

Net Income (Non-GAAP)

Non-GAAP net income was $27,441 thousand for Q2 2026, $21,004 thousand for Q1 2026, and $19,992 thousand for Q2 2025 . For the six months ended June 30, 2026, non-GAAP net income was $48,445 thousand, compared to $39,209 thousand for the six months ended June 30, 2025 .

Segment Revenue (Q2 2026)

The Advanced Computing & Communications (AC&C) segment revenue was $127 million, showing a 71% YoY growth . The Medical segment grew by 22% YoY to $134 million . Semi-Cap revenue increased by 17% YoY to $223 million, representing 29% of total revenue . Industrial revenue grew by 13% YoY to $161 million, accounting for 21% of total revenue . The Aerospace & Defense (A&D) segment experienced a -12% YoY change, with revenue of $111 million, which was 15% of total revenue . AC&C segment revenue was 17% of total revenue, and Medical segment revenue was 18% of total revenue .

Operating Costs (GAAP, Three Months Ended June 30, 2026)

Selling, general, and administrative expenses were $46,132 thousand . Amortization of intangible assets amounted to $1,204 thousand . Restructuring charges and other costs were $811 thousand . Interest expense was - $3,751 thousand, while interest income was $1,990 thousand . Other (expense) income, net, was $223 thousand, and income tax expense was $8,833 thousand .

Cash Flow

Cash flows from operations for Q2 2026 were $35 million, compared to $47 million in Q1 2026 and - $3 million in Q2 2025 . Free cash flow was $22 million in Q2 2026, following $29 million in Q1 2026 and - $15 million in Q2 2025 . Net cash provided by operating activities for the six months ended June 30, 2026, was $81,703 thousand, compared to $28,680 thousand for the same period in 2025 . Free cash flow for the six months ended June 30, 2026, was $50,511 thousand, compared to $12,220 thousand for the same period in 2025 .

Balance Sheet and Capital Allocation

As of Q2 2026, Benchmark Electronics, Inc. reported $315 million in cash and $134 million in net cash . The company had $509 million in available borrowing capacity under its revolving credit facility . In Q2 2026, $6 million was returned to investors through share repurchases, compared to $8 million in Q2 2025 and $6 million in Q1 2026 .

Working Capital

The cash conversion cycle days improved to 59 days in Q2 2026, down from 67 days in Q1 2026 and 85 days in Q2 2025 . For the three months ended June 30, 2026, days in accounts receivable were 54, days in contract asset were 23, and days in inventory were 72 . Days in accounts payable were -73, and days in advance payments from customers were -17 .

Outlook and Guidance

For Q3 2026, Benchmark Electronics, Inc. anticipates net sales between $755 million and $795 million, with a non-GAAP gross margin of 10.5% to 10.7% and a non-GAAP operating margin of 5.3% to 5.5% . The company is raising its full-year 2026 revenue guidance to 13% growth, aiming to achieve a record $3 billion in revenue . This growth is expected to be driven by double-digit growth in four of its five sectors and continued investment in future growth initiatives like Penang PT 4 and a new facility in Thailand .