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Can TTMI's AI Data-Center Boom Reshape Its Commercial Business?
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Key Takeaways
TTM Technologies' Commercial sales jumped 57.1% in Q2 2026, while operating margin rose to 18.1%.
Data Center and Networking revenues surged 91% and are projected to more than double for full-year 2026.
TTMI expects about $600 million of N M revenues in 2H 2026, with improving yields supporting margins.
TTM Technologies (TTMI - Free Report) is benefiting from surging AI data-center demand, strengthening its Commercial business and driving faster growth and higher profitability. Commercial segment sales surged 57.1% year over year to $621.6 million in the second quarter of 2026, driven primarily by continued AI data-center buildouts and strength in medical, industrial and instrumentation markets. Commercial operating margin also expanded 290 basis points to 18.1%, reflecting higher volumes, an improving mix and improved operational execution.
Data Center and Networking has become central to this momentum. The end market generated 40% of second-quarter sales as revenues jumped 91% year over year. TTMI expects its contribution to reach 49% in the third quarter and projects full-year 2026 Data Center and Networking revenues to more than double.
The ramp of N+M asymmetrical interconnect PCBs could further strengthen growth and profitability. TTMI expects roughly $600 million of N+M revenues in the second half of 2026, with about one-third in the third quarter and two-thirds in the fourth quarter of 2026; improving yields are also expected to support adjusted EBITDA margins.
Commercial book-to-bill of 1.63 and a 144% increase in the 90-day Commercial backlog add further revenue visibility.
With AI driving higher-end products, capacity expansion, stronger margins and rising backlog, TTMI’s data-center boom appears capable of significantly reshaping its Commercial business into a larger and more profitable growth platform.
How Do Competitors Fare Against TTMI?
TTM Technologies competes with companies such as Celestica (CLS - Free Report) and Sanmina Corporation (SANM - Free Report) in the AI data-center infrastructure market, particularly in advanced PCB, interconnect, networking and accelerated-compute applications.
Celestica competes with TTMI for AI data-center infrastructure through its CCS business, where Celestica supplies hyperscaler-focused networking and AI/ML compute programs, including 800G and 1.6T platforms. This overlaps TTMI’s advanced interconnect focus and N+M PCB ramp for data-center networking. Celestica’s hyperscaler relationships and capacity expansion therefore make Celestica a relevant competitor as AI infrastructure demand accelerates.
Sanmina competes directly with TTMI through high-technology PCB capabilities while expanding its cloud and AI infrastructure business. Sanmina is investing in new PCB capabilities for AI products, alongside AI-system racks and accelerated-compute infrastructure. These investments position Sanmina against TTMI, whose data-center growth is driven by advanced interconnect products and N+M asymmetrical PCBs.
Shares of TTMI have soared 152.4% over the past year, significantly outperforming the broader Zacks Computer and Technology sector's 27.9% growth.
TTMI’s 1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TTMI stock is currently trading at a forward 12-month Price/Earnings ratio of 19.99X compared with the Electronics - Miscellaneous Components industry’s 21.61X. TTMI has a Value Score of D.
TTMI’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects 2026 earnings of $4.82 per share, representing a substantial 95.93% year-over-year gain. Estimates have been raised over both the past 30 and 60 days, suggesting continued improvement in analysts’ expectations.
View the Zacks #1 Rank List
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Can TTMI's AI Data-Center Boom Reshape Its Commercial Business?
Key Takeaways
TTM Technologies (TTMI - Free Report) is benefiting from surging AI data-center demand, strengthening its Commercial business and driving faster growth and higher profitability. Commercial segment sales surged 57.1% year over year to $621.6 million in the second quarter of 2026, driven primarily by continued AI data-center buildouts and strength in medical, industrial and instrumentation markets. Commercial operating margin also expanded 290 basis points to 18.1%, reflecting higher volumes, an improving mix and improved operational execution.
Data Center and Networking has become central to this momentum. The end market generated 40% of second-quarter sales as revenues jumped 91% year over year. TTMI expects its contribution to reach 49% in the third quarter and projects full-year 2026 Data Center and Networking revenues to more than double.
The ramp of N+M asymmetrical interconnect PCBs could further strengthen growth and profitability. TTMI expects roughly $600 million of N+M revenues in the second half of 2026, with about one-third in the third quarter and two-thirds in the fourth quarter of 2026; improving yields are also expected to support adjusted EBITDA margins.
Commercial book-to-bill of 1.63 and a 144% increase in the 90-day Commercial backlog add further revenue visibility.
With AI driving higher-end products, capacity expansion, stronger margins and rising backlog, TTMI’s data-center boom appears capable of significantly reshaping its Commercial business into a larger and more profitable growth platform.
How Do Competitors Fare Against TTMI?
TTM Technologies competes with companies such as Celestica (CLS - Free Report) and Sanmina Corporation (SANM - Free Report) in the AI data-center infrastructure market, particularly in advanced PCB, interconnect, networking and accelerated-compute applications.
Celestica competes with TTMI for AI data-center infrastructure through its CCS business, where Celestica supplies hyperscaler-focused networking and AI/ML compute programs, including 800G and 1.6T platforms. This overlaps TTMI’s advanced interconnect focus and N+M PCB ramp for data-center networking. Celestica’s hyperscaler relationships and capacity expansion therefore make Celestica a relevant competitor as AI infrastructure demand accelerates.
Sanmina competes directly with TTMI through high-technology PCB capabilities while expanding its cloud and AI infrastructure business. Sanmina is investing in new PCB capabilities for AI products, alongside AI-system racks and accelerated-compute infrastructure. These investments position Sanmina against TTMI, whose data-center growth is driven by advanced interconnect products and N+M asymmetrical PCBs.
TTMI’s Share Price Performance, Valuation & Estimates
Shares of TTMI have soared 152.4% over the past year, significantly outperforming the broader Zacks Computer and Technology sector's 27.9% growth.
TTMI’s 1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TTMI stock is currently trading at a forward 12-month Price/Earnings ratio of 19.99X compared with the Electronics - Miscellaneous Components industry’s 21.61X. TTMI has a Value Score of D.
TTMI’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects 2026 earnings of $4.82 per share, representing a substantial 95.93% year-over-year gain. Estimates have been raised over both the past 30 and 60 days, suggesting continued improvement in analysts’ expectations.
Image Source: Zacks Investment Research
TTM Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.