TTM Technologies Beats Q4 Forecasts on AI and Defense Demand, But Market Reaction Remains Muted

TTM Technologies, Inc. (NASDAQ: TTMI), a leading global manufacturer of printed circuit boards (PCBs) and advanced electronic solutions, delivered a robust finish to its fiscal year, surpassing market forecasts for the fourth quarter of 2025. The company reported revenue of $774.3 million, an 18.9% year-over-year increase, and non-GAAP earnings per share of $0.70, beating consensus estimates. Management's revenue guidance for the upcoming quarter, with a midpoint of $790 million, also came in approximately 7% above analyst projections.

The performance was driven by what CEO Edwin Roks described as "exceptional demand" in two key verticals. "Our results reflect the powerful tailwinds from the build-out of AI infrastructure and sustained strength in long-cycle defense programs," Roks stated in the earnings call. He highlighted that sales in data center computing and networking markets, propelled by generative AI requirements, were a primary growth engine. The aerospace and defense segment also contributed significantly, supported by a substantial and growing backlog.

Operationally, gross margins improved, benefiting from higher production volumes and a favorable product mix. However, the company acknowledged that operational challenges at its Penang facility partially offset these gains. Looking forward, TTM outlined an ambitious growth trajectory, forecasting 15% to 20% annual revenue growth over the next three years with a goal to double earnings from 2025 to 2027. This confidence is underpinned by ongoing capacity expansions in the United States and China.

Despite the strong fundamentals and bullish outlook, investor sentiment appeared cautious. The stock price dipped following the earnings announcement, a reaction analysts attribute to broader market skepticism toward manufacturing stocks and concerns over the capital intensity of TTM's expansion plans. CFO Dan Bailey countered, emphasizing that investments in new capacity and operational efficiency are precisely designed to fuel both top-line growth and margin expansion in the coming years.

Analyst & Investor Commentary:

"This is a classic 'show me' story," said Michael Thorne, a portfolio manager at Horizon Capital. "The numbers are undeniably good, and the AI/defense thesis is solid. But the market needs to see consistent execution on these facility ramps in Syracuse and Penang, and proof that margins can hold as they scale. The guidance is aggressive, and that's making some people nervous."

"The market's reaction is frankly baffling," argued Sarah Chen, an independent tech industry analyst. "Here's a company executing flawlessly in the two hottest secular growth markets, with clear visibility and a fortified backlog, yet it gets sold off. It feels like a disconnect between short-term trading and long-term value creation. This dip could be a buying opportunity for patient investors."

"Let's not get carried away," countered David Reeves, a vocal skeptic on online investor forums. "PCB manufacturing is a brutally competitive, low-margin business. Everyone is jumping on the 'AI everything' bandwagon. TTM is spending heavily, and any hiccup in defense funding or a slowdown in data center spend will hit them hard. These lofty growth targets smell like hype to me."

"The defense backlog provides a solid floor," noted Priya Sharma, a senior research associate at Franklin & Birch. "It de-risks the story significantly. The key monitorable is whether commercial AI demand can sustain its momentum to fully utilize the new capacity coming online. If it does, the current valuation looks compelling."

Moving forward, investors will be closely watching the company's progress on key operational milestones, the sustainability of order flow from AI-related customers, and the successful execution of its sizable defense contract backlog.