Benchmark Electronics, Inc.

Benchmark reported Q2 2026 revenue of $756 million, up 18% year over year, and non-GAAP EPS of $0.75, up 36% year over year. Non-GAAP gross margin was 10.5%, up 30 basis points year over year and 20 basis points sequentially, and non-GAAP operating margin was 5.2%, up 50 basis points year over year and 40 basis points sequentially. For Q3 2026, the company guided revenue to $755 million to $795 million, non-GAAP EPS to $0.76 to $0.82, gross margin to 10.5% to 10.7%, and operating margin to 5.3% to 5.5%. Management also raised full-year 2026 revenue outlook to $3 billion, and said Q3 effective tax rate should be 26% to 27% with weighted average diluted shares of about 36.4 million.

David Moezidis said the quarter showed strong execution and broadening demand, with healthy double-digit growth in 4 of 5 sectors and strong bookings, especially in A&D. He emphasized that Benchmark is “winning,” seeing improving demand across most markets, and increased confidence in the company’s ability to deliver a new full-year revenue high. His tone was upbeat but measured, noting there is still work to do and that supply chain tightness requires proactive management.

Bryan Schumaker highlighted that Q2 gross margin of 10.5% improved 30 basis points year over year and operating margin of 5.2% improved 50 basis points, driven mainly by volume and revenue leverage. He said the company generated $35 million of operating cash flow and $22 million of free cash flow, ended the quarter with $315 million of cash and $134 million of cash net of debt, and retained more than $0.5 billion of borrowing capacity. He also noted $13 million of capex in Q2, expects full-year capex at 2% to 2.5% of revenue, and said the company returned $6 million to shareholders via dividends while continuing to look at buybacks to offset dilution.

Analysts pressed on Aerospace and Defense bookings, with management saying the defense environment remains strong and that Benchmark is also winning in space, while A&D was the biggest contributor to bookings in Q2. Questions on Industrial competitive takeaways were answered by pointing to execution and customer collaboration that created a share-of-wallet gain. On supply chain, management said lead times in some complex components have stretched from 3-5 months to 7-12 months, and on Medical they said growth reflects better demand, channel inventory digestion working through, and a meaningful competitive takeaway that was a lift-and-shift win.