Key Highlights

  • Consensus EPS of 0.79 sits within third-quarter non-GAAP EPS guidance of 0.76 to 0.82, against second-quarter 0.75.
  • Consensus revenue of USD 776.65 million sits within third-quarter guidance of USD 755 million to USD 795 million.
  • Management raised its 2026 revenue outlook to USD 3 billion, representing approximately 13% growth year over year.
  • Advanced Computing and Communications revenue increased 71% year over year, driven by artificial intelligence program wins and production ramps.

Benchmark Electronics (NYSE:BHE) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.79 on revenue of USD 776.65 million, and the company has a market capitalization of USD 2.40 billion.

Benchmark Electronics provides electronics manufacturing and engineering services across sectors including advanced computing and communications, medical, semiconductor capital equipment, industrial, and aerospace and defense. Second-quarter revenue was USD 755,980 thousand against USD 642,335 thousand, and net income was USD 19,882 thousand against USD 972 thousand.

Estimates Against Third-Quarter Guidance

The EPS estimate of 0.79 is within third-quarter non-GAAP EPS guidance of 0.76 to 0.82, which is based on 36.4 million weighted average diluted shares. The estimates table does not state its EPS basis. Second-quarter non-GAAP EPS was 0.75, against diluted EPS of 0.55.

The revenue estimate of USD 776.65 million is within third-quarter revenue guidance of USD 755 million to USD 795 million. Management also guided non-GAAP gross margin of 10.5% to 10.7%, non-GAAP operating margin of 5.3% to 5.5% and a non-GAAP effective tax rate of 26% to 27%.

What Management Guided and What It Left Open

Management raised its 2026 revenue outlook to USD 3 billion, representing approximately 13% growth. It said second-quarter revenue and EPS were above the high end of its April guidance. GAAP expenses are projected to include approximately USD 8.4 million of stock-based compensation.

Management left open supply chain tightness, saying it began seeing tightness in memory, and program timing in aerospace and defense, which it described as a transition year. It paused share buybacks during the quarter.

Sector Revenue and Bookings Detail

Advanced Computing and Communications revenue increased 71% year over year and 21% sequentially. Medical revenue grew 22% and semiconductor capital equipment revenue increased 17%. Industrial revenue grew 13%, while aerospace and defense revenue declined 12%.

Management said aerospace and defense was the largest contributor to new bookings in the quarter. Non-GAAP operating margin was 5.2% and non-GAAP gross margin was 10.5%.

Income Statement Lines, Cash Flow and Balance Sheet

Gross profit was USD 78,400 thousand against USD 64,772 thousand, and selling, general and administrative expenses were USD 46,132 thousand against USD 40,569 thousand. Income from operations was USD 30,253 thousand against USD 20,486 thousand, and interest expense was USD 3,751 thousand against USD 6,348 thousand.

Income before income taxes was USD 28,715 thousand against USD 16,607 thousand. Operating cash flow was USD 35 million and free cash flow was USD 22 million. Cash and cash equivalents were USD 315 million, and the company returned USD 6 million to shareholders through dividends. The estimates table lists a market capitalization of USD 2.40 billion.

Markers for the Release

Reported EPS against 0.79 and revenue against USD 776.65 million are the headline comparisons. Other markers are sector revenue, bookings and the 2026 outlook of USD 3 billion.