CTS

Interested in CTS Corporation? Here are five stocks we like better. CTS reported strong second-quarter results: Revenue rose 7% year over year to $144.8 million, while adjusted gross margin reached a record 41.5% and adjusted EPS increased about 30% to $0.74. Diversified markets drove growth: Medical revenue jumped 45% and industrial sales rose 16%, while aerospace and defense is expected to strengthen in the second half. Transportation sales declined 2%, but new awards totaled approximately $163 million, including a roughly $100 million sensor contract. CTS raised its 2026 outlook to sales of $565 million-$585 million and adjusted diluted EPS of $2.55-$2.70, supported by continued diversified-market growth despite uncertainty in transportation, tariffs and input costs. AI revolution: 3 stocks set to soar as technology evolves CTS (NYSE:CTS) reported second-quarter 2026 revenue growth and record adjusted profitability, led by continued expansion in its diversified end markets, while transportation sales declined modestly. In his first earnings call as chief executive officer, Pratik Trivedi said the company’s Evolution 2030 strategy and diversification efforts remain central to its value-creation plans. CTS reported second-quarter sales of $144.8 million, up 7% from the prior-year quarter and 4% sequentially. Diversified end-market sales increased 15% year over year and accounted for 59% of total revenue, compared with 55% a year earlier. Transportation sales declined 2%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 7 Best AI Mutual Funds (and ETFs) to Sweep the AI Craze “Robust growth across our diversified end markets drove strong financial results and improved the quality of our earnings despite modest declines in transportation,” Trivedi said. CTS reported an adjusted gross margin of 41.5%, a record level and an increase of 270 basis points from the second quarter of 2025. Adjusted EBITDA margin rose about 240 basis points year over year to 25.4%. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Small-Cap CTS Corporation Positioned For Big Business Adjusted diluted earnings per share reached a record $0.74, up about 30% from $0.57 in the prior-year quarter. CFO Ashish Agrawal said the quarter included approximately $0.07 per share of favorable effects from foreign currency movements and a larger customer reimbursement. The company said it expects research-and-development expenses to move closer to normal levels going forward, though customer reimbursements may continue to occur as development programs progress. Foreign currency changes favorably affected quarterly sales by approximately $1.4 million and provided about $1 million of benefit to gross margin, according to Agrawal. → 2 Stocks Built to Thrive If Inflation Refuses to Fade CTS generated $33 million in operating cash flow during the quarter. Capital expenditures totaled $4.6 million, producing approximately $29 million in free cash flow. The company ended the quarter with $108 million in cash and $55 million in borrowings. During the period, CTS repurchased about 64,000 shares for $3.5 million. It had $78 million remaining under its share-repurchase authorization at quarter-end. Medical revenue totaled $28 million, rising 45% from a year earlier and 14% sequentially. Trivedi attributed the increase to broad demand for sensing and actuation technologies used in advanced diagnostics and therapeutic treatments. The medical segment recorded a book-to-bill ratio of 1.21. Trivedi said capacity expansion intended to support medical demand was already in place, and the company expects volumes in therapeutic applications to become more normalized in the second half of the year. Agrawal said medical carries the strongest gross margins among CTS’s diversified end markets, though industrial and aerospace and defense also generate healthy margins. Industrial sales increased 16% year over year and 6% sequentially to $40 million. The segment’s book-to-bill ratio was 1.11, and CTS added two customers in process instrumentation and cryogenic nanopositioning applications. The company cited design wins involving distribution components, industrial printing, EMI filters, temperature sensing, heat pumps, refrigeration, and pool and spa systems. Aerospace and defense sales were $18 million, down 15% from the prior-year quarter but up 4% from the first quarter. CTS said the year-over-year decline primarily reflected the timing of program funding and government contract awards. The segment posted a 1.23 book-to-bill ratio, and the company added a customer focused on defense satellite communications. Trivedi said government funding had begun to flow into several key programs, supporting increased customer activity. CTS expects aerospace and defense revenue to strengthen in the second half, supported by bookings, backlog and funding deployment. Transportation sales were $59 million, down 2% both year over year and sequentially. However, CTS secured approximately $163 million in new transportation business awards during the quarter, including a roughly $100 million sensor award from a major North American original equipment manufacturer for an integrated wheel-speed accelerometer sensing application. The company also added a North American electric-vehicle customer for a seat-track position sensor used in vehicle safety systems. Awards spanned North America, Japan, China and Europe, covering CTS’s sensor portfolio and foot controls. Total booked transportation business stood at approximately $1.2 billion at the end of the quarter, up about $100 million from the first quarter. Agrawal said transportation book-to-bill generally remains close to 1 because customer orders in that market are short cycle. He also said CTS expects modest commercial-vehicle market growth in the second half, supported by freight fundamentals and potential pre-buy activity ahead of 2027 emissions regulations. The company is still assessing its future market share as Cummins continues a supply-base transition involving a second source. Management noted that new transportation program launches can initially pressure gross margin before productivity improvements are achieved over the platform life cycle. CTS raised its full-year 2026 outlook, assuming current market conditions continue. The company now expects sales of $565 million to $585 million and adjusted diluted EPS of $2.55 to $2.70. Trivedi said diversified-market growth is expected to continue across medical, aerospace and defense, and industrial. For transportation, CTS expects global light-vehicle production to be flat to modestly down amid tariff, geopolitical and consumer-demand uncertainty. The company said it does not anticipate a material impact from recent tariff announcements, but it continues to monitor Section 232 tariff changes, precious-metal inflation, U.S.-Mexico-Canada Agreement negotiations and other input-cost pressures. Agrawal said CTS is working with customers and suppliers on pricing and cost recovery, with the range in guidance reflecting potentially different outcomes from those discussions. CTS Corporation (NYSE:CTS) is a global manufacturer and supplier of electronic components and sensors, headquartered in Lisle, Illinois. Established in 1896 as the Chicago Telephone Supply Company, the firm has evolved over more than a century to become a diversified provider of high-precision products for a wide range of end markets. The company's core business encompasses the design, development and production of sensors and actuators, frequency control devices such as quartz crystals and filters, multilayer ceramic capacitors, and inductive components. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CTS Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

CTS (CTS) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.31%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $0.52 per share when it actually produced earnings of $0.62, delivering a surprise of +19.23%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CTS, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $144.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $135.31 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CTS shares have added about 40.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While CTS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CTS was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $148.69 million in revenues for the coming quarter and $2.43 on $571.09 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Components is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vishay Precision (VPG), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This precision sensors and systems producer is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vishay Precision's revenues are expected to be $87.41 million, up 16.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CTS Corporation (CTS) : Free Stock Analysis Report Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record gross margins of 41.5% were driven by a favorable shift toward diversified end markets, which now represent 59% of total revenue. The medical segment achieved 45% year-over-year growth, fueled by broad-based demand for sensing and actuation technologies in advanced diagnostics and therapeutics. Industrial markets extended a recovery trend with 16% growth, supported by secular tailwinds in automation, digitalization, and energy efficiency. Transportation sales declined 2% as the company navigates a cautious global light vehicle production environment impacted by tariffs and geopolitical uncertainties. Management is pivoting from being a component supplier to providing high-value integrated subsystems in aerospace and defense to capture more value from government funding flows. Operational execution and the 'Evolution 2030' strategy remain the primary frameworks for converting diversified growth into higher-quality earnings. Full-year 2026 guidance was raised to $565-$585 million in sales, assuming continued momentum in diversified markets despite flat-to-down light vehicle production. Aerospace and defense revenue is expected to strengthen in the second half of 2026 as government funding deployments accelerate for key programs. The commercial vehicle market is projected to see modest growth driven by freight fundamental improvements and pre-buy activity ahead of 2027 emissions regulations. Management expects medical therapeutics volumes to normalize in the second half of the year following a period of rapid capacity expansion. The company is maintaining a cautious stance on transportation due to ongoing tariff developments and potential cost pressures from precious metal inflation. Second quarter EPS included a $0.07 favorable impact from unusual items, specifically foreign currency favorability and a large customer reimbursement for R&D. A record $100 million sensor award was secured with a North American OEM, highlighting the success of powertrain-agnostic product strategies. Management is actively monitoring Section 301 tariff changes and USMCA negotiations to ensure cost-neutral outcomes through customer and supplier collaborations. The company continues to manage a competitive transition in the commercial vehicle space as a major customer, Cummins, integrates a second source into their supply base. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Prateek Trivedi emphasized an acceleration of the growth strategy for diversified end markets while focusing on stabilizing the transportation business. The strategy remains rooted in the 'Evolution 2030' business system, focusing on operational rigor and diversification to improve earnings quality. Management expects R&D expenses to return to normal quarterly run rates in the second half of the year. While customer reimbursements will continue as programs reach specific milestones, the high level seen in Q2 was timing-dependent and not a new baseline. Medical is confirmed as the highest-margin segment within the diversified portfolio, though industrial and aerospace also maintain healthy margins. The overall shift toward diversified markets is the primary driver of the company's record-level gross margins. CTS expects to have full visibility into its ongoing market share versus competitors in the commercial vehicle space by the end of the year. The transition involving a customer's second-source supplier is still ongoing, impacting current volume dynamics.

Strong diversification momentum drives record margins and profitability; 2026 outlook raised LISLE, Ill., July 28, 2026 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS), a leading global designer and manufacturer of highly engineered solutions that “Sense, Connect and Move,” today announced results for the Second quarter of 2026. “CTS’s diversification strategy is translating into stronger, more resilient performance with those end market sales up 15% year over year and now represent 59% of total revenue. Transportation sales modestly declined with strong growth in new wins,” said Pratik Trivedi, CEO of CTS Corporation. “We delivered another quarter of outstanding execution, driving profitable growth, record margins, and strong cash generation. Our focus remains on the transformation of our portfolio through continued growth in our diversified end markets to accelerate long term value creation.” Second Quarter 2026 Results Sales were $144.8 million in the second quarter of 2026, up 7% year-over-year. Sales to diversified end-markets increased 15%. Sales to the transportation market decreased 2%. Net income was $19.2 million, or 13.2% of sales, compared to $18.5 million, or 13.7% of sales in the second quarter of 2025. Diluted EPS was $0.66, up 4 cents from $0.62 in the second quarter of 2025. Adjusted Gross margin was 41.5%, up 270 bps from 38.7% in the second quarter of 2025. Adjusted EBITDA margin was 25.4%, up 240 bps from 23.0% in the second quarter of 2025. Adjusted diluted EPS was $0.74, up 17 cents from $0.57 in the second quarter of 2025. Operating cash flow was $33.4 million, up $5.0 million from $28.4 million in the second quarter of 2025. 2026 Guidance Assuming the continuation of current market conditions, CTS is increasing its previous guidance of 2026 sales from a range of $560-$580 million to $565-$585 million and adjusted diluted EPS from a range of $2.35-$2.45 to $2.55-$2.70. CTS does not provide reconciliations of forward-looking non-GAAP financial measures, such as estimated adjusted diluted earnings per share, to the most comparable GAAP financial measures on a forward-looking basis because CTS is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, foreign exchange rates and other non-routine costs. Each of such adjustments has not yet occurred, are out of CTS' control and/or cannot be reasonably predicted. For the same reasons, CTS is unable to address the probable significance of the unavailable information. Conference Call and Supplemental Materials As previously announced, CTS has scheduled a conference call for 10:00 a.m. (ET) today. The conference call can be accessed by registering online at CTS Corporation Q1 2026 Earnings Call, at which time registrants will receive dial-in information as well as a conference ID. In addition, CTS will be using a supplemental slide presentation that will be referred to during the call. The presentation and a live audio webcast of the conference call will be available and can be accessed directly from CTS’ website at https://investors.ctscorp.com/news-events/events-and-presentations/default.aspx. Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible through the website noted above, has not been authorized by CTS and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. About CTS CTS Corporation (NYSE: CTS) is a leading designer and manufacturer of products that Sense, Connect and Move. CTS manufactures sensors, actuators and electronic components in North America, Europe and Asia, and provides engineered products to customers in the aerospace & defense, industrial, medical and transportation markets. For more information, visit www.ctscorp.com/. Diversified end markets, previously referred as the “non-transportation” market, includes the industrial, aerospace & defense, and medical end markets. Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this document regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are, or may be deemed to be, “forward-looking statements” as defined by the “safe harbor” provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included or incorporated in this document, including statements regarding our strategy, financial position, guidance, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, and objectives of management, among others, are forward-looking statements. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “continued,” “project,” “plan,” “goals,” “opportunity,” “appeal,” “estimate,” “potential,” “predict,” “demonstrates,” “may,” “will,” “might,” “could,” “intend,” “shall,” “possible,” “would,” “approximately,” “likely,” “outlook,” “schedule,” “on track,” “poised,” “pipeline,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are based on management’s expectations, certain assumptions, and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties, and other factors, which could cause CTS’ actual results, performance, or achievements to differ materially from those presented in the forward-looking statements. Examples of factors that may affect future operating results and financial condition include, but are not limited to: supply chain disruptions (including, but not limited to, the availability and cost of rare earth elements, minerals and metals); changes in the economy generally, including inflationary and/or recessionary conditions and increased tariffs, and in respect to the businesses in which CTS operates; unanticipated issues in integrating acquisitions; the funding of contracts by the U.S. Government; the results of actions to reposition CTS’ business; rapid technological change; general market conditions in the transportation, as well as conditions in the industrial, aerospace and defense, and medical markets; reliance on key customers; unanticipated public health crises, natural disasters or other events; environmental compliance and remediation expenses; the ability to protect CTS’ intellectual property; pricing pressures and demand for CTS’ products; risks associated with CTS’ international operations, including trade and tariff barriers, trade pacts, including the future of the USMCA, exchange rates and political and geopolitical risks (including, without limitation, the impact of tariffs on China, Canada and Mexico, and other nations, the potential impact of U.S./China relations and the impact of geopolitical conflicts may have on our business, results of operations and financial condition; write offs of goodwill on our balance sheet; the amount and timing of any share repurchases; and the effect of any cybersecurity incidents on our business. Many of these, and other risks and uncertainties, are discussed in further detail in Item 1A. of CTS's most recent Annual Report on Form 10-K and other filings made with the SEC. CTS undertakes no obligation to publicly update CTS’ forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes. ContactAshish AgrawalVice President and Chief Financial OfficerCTS Corporation4925 Indiana AvenueLisle, IL 60532 USA+1 (630) [email protected] CTS CORPORATION AND SUBSIDIARIESOTHER SUPPLEMENTAL INFORMATION - UNAUDITED(In millions of dollars, except percentages and per share amounts) Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures presented are commonly used by financial analysts and others in the industries in which CTS operates, and thus further provide useful information to investors. CTS’ definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. Non-GAAP measures should not be used by investors or third parties as the sole basis for formulating investment decisions, as they may exclude a number of important cash and non-cash recurring items. CTS has presented these non-GAAP financial measures as it believes that the presentation of its financial results that exclude (1) restructuring charges; (2) restructuring-related charges; (3) environmental charges; (4) acquisition-related adjustments; (5) inventory fair value step-up costs; (6) foreign exchange (gains) losses; (7) non-cash pension expenses (income); and (8) certain discrete tax items are useful and assist in comparing CTS’ current operating results with past periods and with the operational performance of other companies in its industry. Included below is a description of the expenses that CTS has determined are not normal, recurring cash operating expenses necessary to operate its business and the rationale for why providing financial measures for its business with such expenses excluded or adjusted is useful to investors as a supplement to the U.S. GAAP measures. Restructuring charges – costs primarily relating to workforce reduction costs, building and equipment relocation costs, asset impairment charges and other facility closure costs in connection with our continued optimization of our organization. Restructuring-related charges – costs related to restructuring actions that do not qualify as direct restructuring charges under US GAAP. These include duplicative expenses incurred due to the plant consolidation related transition activities such as excess rent, utilities, personnel related and other costs prior to start of production at the new location. Environmental charges – costs associated with our non-operating facilities that are unrelated to ongoing operations. Currently, none of these costs and accruals relate to sites that provide revenue generating activities for the Company. Acquisition-related adjustments – diligence and transaction costs related to acquisitions including related contingent earnout and other adjustments. Inventory fair value step-up costs – purchase accounting-related inventory costs from acquisitions. Foreign exchange (gains) losses – remeasurement income and expenses for non-U.S. subsidiaries with the U.S. dollar as the functional currency. Non-cash pension expenses (income) – pension income and expenses relating to the non-operating U.S. pension and post-retirement life insurance plans, including historical plan settlement activities. Discrete tax items – non-recurring, infrequent, or unusual tax adjustments (e.g., valuation allowances, uncertain tax position changes, unremitted assertion changes and discrete impacts associated with pre-tax non-GAAP items or due to tax law changes, etc.). At times, the reconciliations below have been intentionally rounded to the nearest thousand, or $0.01 for EPS figures, and, therefore, may not sum. Adjusted Gross Margin Adjusted Operating Earnings Adjusted EBITDA Margin Adjusted Net Earnings and Adjusted Diluted Earnings Per Share NOTE: CTS believes that adjusted gross margin, adjusted operating earnings, adjusted EBITDA margin, adjusted net earnings and adjusted diluted earnings per share provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of CTS’ core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of CTS’ fundamental business operations (such as those items noted above in the paragraph titled “Non-GAAP Financial Measures”) or were not part of CTS’ business operations during a comparable period. Controllable Working Capital NOTE: CTS believes the controllable working capital ratio is a useful measure because it provides an objective measure of the efficiency with which CTS manages its short-term capital needs. Free Cash Flow NOTE: CTS believes that free cash flow is a useful measure because it demonstrates the company’s ability to generate cash. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in the company's condensed consolidated statement of cash flows as a measure of liquidity. Capital Expenditures Additional Information The following table includes other financial information not presented in the preceding financial statements.

This article first appeared on GuruFocus. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CTS Corp (NYSE:CTS) reported a 7% increase in second-quarter sales compared to the same period in 2025, with a 4% sequential growth from the first quarter of 2026. The company achieved a record adjusted gross margin of 41.5%, up 270 basis points year over year. CTS Corp (NYSE:CTS) secured several new business awards totaling $163 million, including a significant win with a North American OEM. The medical end market saw a 45% year-over-year revenue increase, driven by strong demand for advanced diagnostics and therapeutic treatments. The industrial market continued its strong momentum with a 16% year-over-year sales increase, supported by broad-based customer demand and healthy bookings. Transportation sales were down 2% year over year and sequentially, reflecting challenges in the automotive sector. Space and defense sales decreased by 15% year over year, although there was a 4% sequential increase. The company faces ongoing geopolitical and tariff-related uncertainties, which could impact future performance. CTS Corp (NYSE:CTS) anticipates flat to modestly down vehicle production volumes due to geopolitical and consumer demand uncertainties. The commercial vehicle market's growth is expected to be modest, with potential dampening effects on gross margins as volumes return. Warning! GuruFocus has detected 7 Warning Sign with PFG. Is CTS fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss your observations since joining CTS and how your approach might differ from your predecessor? A: (Pratik Trivedi, CEO) I've been with CTS for over two years, focusing on our diversified end markets. I've developed strategies to accelerate growth in these areas while stabilizing our transportation business. Our results this quarter show that our strategy is working, guided by our Evolution 2030 business system. Q: Should we expect R&D expenses to return to normal levels, or are there more customer reimbursements planned? A: (Ashish Agrawal, CFO) R&D expenses are expected to normalize, but customer reimbursements will continue as programs reach certain activity levels. We continuously work with customers on product development initiatives. Q: Is the medical segment generating higher gross margins compared to other sectors? A: (Ashish Agrawal, CFO) Yes, the medical segment generally has stronger gross margins compared to other diversified end markets, although industrial and aerospace and defense also have healthy margins. Q: What is the outlook for price increases, inflationary costs, and negotiations with customers for the rest of the year? A: (Ashish Agrawal, CFO) We are actively discussing pricing with customers and suppliers regarding tariffs and precious metals. The range in our guidance reflects potential outcomes from these discussions, with some cost pressures expected. Q: Is the upward revision in revenue guidance primarily due to the medical segment, or is it a combination of different end markets? A: (Pratik Trivedi, CEO) The revision reflects growth across all diversified end marketsindustrial, aerospace and defense, and medical. In transportation, we expect flat to slightly down production volumes due to geopolitical and inflationary pressures. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TD SYNNEX SNX reported non-GAAP earnings of $4.85 per share for the second quarter of fiscal 2026, beating the Zacks Consensus Estimate of $3.92 by 19.9%. The bottom line increased 62.2% year over year. Revenues of $19.58 billion surpassed the consensus mark of $16.84 billion by 16.2% and increased 31% from the year-ago quarter. The strong performance was driven by broad-based momentum across the Distribution and Hyve businesses. Non-GAAP gross billings climbed 33.4% year over year to a record $28.9 billion, reflecting continued demand across infrastructure, security and hyperscale programs. TD SYNNEX's Distribution business generated non-GAAP gross billings of $23.4 billion, up 22% year over year. Management highlighted broad-based strength across all regions and product categories, supported by strong demand, an expanding customer base and continued market-share gains. Distribution non-GAAP operating income rose 36% year over year to $434 million. Non-GAAP operating margin, as a percentage of gross billings, improved 19 basis points year over year to 1.85%, benefiting from favorable mix, disciplined cost management and modest gains from strategic inventory purchases. TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote Hyve Solutions remained the standout performer during the quarter. Non-GAAP gross billings surged 117% year over year to $5.5 billion, driven by increased manufacturing volumes from existing customers and continued strength in supply-chain services. Non-GAAP operating income for Hyve increased 89% year over year to $181 million. Manufacturing activities accounted for roughly two-thirds of Hyve's business, while supply-chain services represented approximately one-third. The company also announced plans to expand its U.S. manufacturing footprint by more than one million square feet to support future customer demand. Among product categories, Advanced Solutions revenues increased 43% year over year to $7.8 billion, benefiting from sustained demand in infrastructure and cybersecurity offerings. Endpoint Solutions revenues rose 17% year over year to $8.8 billion, supported by strong personal computer demand and higher average selling prices. Consolidated gross profit increased 28% year over year to $1.34 billion. However, gross margin contracted 16 basis points year over year to 6.84%, reflecting a higher contribution from Hyve and changes in business mix. Despite the margin pressure, non-GAAP operating income advanced 48.5% year over year to $615 million, while non-GAAP operating margin expanded 37 basis points to 3.14%. TD SYNNEX ended the quarter with cash and cash equivalents of approximately $1.1 billion and long-term debt of $3.59 billion. TD SYNNEX reported a net leverage ratio of 1.6x. Net working capital stood at $4.9 billion, while gross cash conversion cycle was 17 days. The company returned $151 million to shareholders during the quarter, including $112 million in share repurchases and $39 million in dividends. Management also announced a quarterly cash dividend of 48 cents per share, representing a 9% year-over-year increase. For the third quarter of fiscal 2026, TD SYNNEX expects revenues to be in the range of $18.2-$19 billion. The company expects non-GAAP earnings per share between $4.25 and $4.75. Management noted that the outlook reflects continued momentum across both the Distribution and Hyve businesses, supported by ongoing investments in AI infrastructure, enterprise modernization initiatives and expanding hyperscaler relationships. Currently, SNX carries a Zacks Rank #2 (Buy). Digital Turbine APPS, ASE Technology ASX and CTS CTS are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, ASE Technology and CTS sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Digital Turbine shares have rallied 102.8% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%. ASE Technology shares have surged 159.2% in the year-to-date period. The long-term earnings growth rate for ASE Technology is pegged at 47.66%. Shares of CTS have gained 55.9% in the year-to-date period. The long-term earnings growth rate for CTS is pegged at 16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CTS Corporation (CTS) : Free Stock Analysis Report TD SYNNEX Corporation (SNX) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Digital Turbine, Inc. (APPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the electronic components & manufacturing stocks, including CTS (NYSE:CTS) and its peers. The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways. The 10 electronic components & manufacturing stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line. Luckily, electronic components & manufacturing stocks have performed well with share prices up 27.6% on average since the latest earnings results. With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE:CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets. CTS reported revenues of $139.2 million, up 10.7% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates. “CTS delivered another quarter of strong performance, with diversified end-market sales up 18% year over year and modest growth in transportation,” said Kieran O’Sullivan, CEO of CTS Corporation. CTS achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 18.9% since reporting and currently trades at $64.55. Is now the time to buy CTS? Access our full analysis of the earnings results here, it’s free. As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries. TTM Technologies reported revenues of $846 million, up 30.4% year on year, outperforming analysts’ expectations by 6.9%. The business had an incredible quarter with EPS guidance for the next quarter exceeding analysts' estimates and an impressive beat of analysts’ revenue estimates. The market seems happy with the results as the stock is up 46.6% since reporting. It currently trades at $201.61. Is now the time to buy TTM Technologies? Access our full analysis of the earnings results here, it’s free. Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing. Coherent reported revenues of $1.81 billion, up 20.5% year on year, exceeding analysts’ expectations by 1.5%. It may have had the worst quarter among its peers, but its results were still good as it also locked in revenue guidance for next quarter exceeding analysts’ expectations. Interestingly, the stock is up 12% since the results and currently trades at $385.89. Read our full analysis of Coherent’s results here. With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry. Amphenol reported revenues of $7.62 billion, up 58.4% year on year. This print topped analysts’ expectations by 7%. It was a stunning quarter with EPS guidance for next quarter exceeding analysts' estimates and an impressive beat of analysts’ revenue estimates. Amphenol achieved the fastest revenue growth among its peers. The stock is up 10.7% since reporting and currently trades at $159.16. Read our full, actionable report on Amphenol here, it’s free. With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing. Jabil reported revenues of $8.28 billion, up 23.1% year on year. This number surpassed analysts’ expectations by 6.8%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter exceeding analysts’ expectations. Jabil had the weakest full-year guidance update among its peers. The stock is up 44.6% since reporting and currently trades at $379.45. Read our full, actionable report on Jabil here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

In recent months, CTS has attracted strong support from analysts, with Zacks assigning it a Rank #1 (Strong Buy) and brokers collectively rating the stock as a strong buy based on earnings estimate revisions and recent EPS performance. This sustained positive sentiment in the research community highlights growing confidence in CTS’s earnings outlook and its ability to execute on current expectations. Next, we’ll examine how this sustained positive analyst sentiment might influence CTS’s existing investment narrative and risk-return profile. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own CTS today, you need to believe in its ability to convert exposure to smart, connected, and electrified technologies into durable earnings, while managing transportation softness and geopolitical pressures. The recent analyst support and strong 12 week price move reinforce confidence in near term execution but do not materially change the key short term catalyst, which is how effectively CTS can grow its higher margin medical and industrial businesses relative to transportation headwinds, nor the biggest risk around ongoing transportation demand weakness. The most relevant recent development to set against this improved sentiment is CTS’s Q1 2026 earnings release, where the company reported higher sales and EPS versus the prior year and modestly raised its full year revenue guidance to US$560 million to US$580 million. This update aligns with the idea that diversification into medical, industrial, and aerospace or defense can help offset transportation softness, but it also puts more attention on execution risk if trade tariffs, China exposure, or European competition were to intensify. Yet behind this positive narrative, investors should be aware of how prolonged transportation softness and China related pressures could... Read the full narrative on CTS (it's free!) CTS' narrative projects $639.6 million revenue and $89.0 million earnings by 2029. Uncover how CTS' forecasts yield a $58.00 fair value, a 15% downside to its current price. Simply Wall St Community members currently place CTS’s fair value between US$58 and US$61.86, based on 2 independent views. Set against the recent analyst optimism around earnings execution, this spread underlines how differently market participants can weigh transportation softness and diversification progress, so it is worth comparing several viewpoints before deciding how CTS fits into your portfolio. Explore 2 other fair value estimates on CTS - why the stock might be worth 15% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your CTS research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free CTS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CTS' overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Find 46 companies with promising cash flow potential yet trading below their fair value. AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CTS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]