Oct 29, 2026 earnings call — Record revenue, strong wins and higher guidance
Reported record fiscal fourth quarter revenue of $1.43 billion and raised fiscal 2027 revenue growth forecast to mid to upper teens.
Revenue $1.4B (est $1.4B) · EPS $2.84 (est $2.55) · Next-quarter revenue outlook $1.4B–$1.5B
Key quotes
"Our wins performance remained strong, while our funnel of qualified manufacturing opportunities reached another record level, expanding $1.2 billion year over year to nearly $5 billion supporting our diversified and accelerating revenue growth momentum."
"We are introducing a new non GAAP operating margin goal of 6.5% to 7.0%, given our expectation of continued revenue growth and ongoing dividends from efficiency investments and our continuous improvement culture."
"This extraordinary result was driven substantially by our semi-cap subsector where revenue increased 50% year over year."
Analyst Q&A 6
Why demand rose: forecasts or pulled orders
Q (Patrick · Needham and Co.): They asked whether the demand rise came from customers raising forecasts or from customers pulling orders to secure capacity and parts. They also asked in semi cap how much growth is from existing programs, new programs, or share gains, and how quickly a slowdown would show up.
A: Management said customer demand increases form a substantial part of their outlook. They said material risk is already contemplated and they work closely with customers to capture materials. In semi cap, they said rising end-market demand plus share gains drove about 50% growth and they expect to continue outperforming.
"I would say that customer demand increases is forming a substantial part of our outlook and the increase that you saw in outlook relative to last quarter." — Oliver K. Mihm (COO)
Free cash flow and working capital needs
Q (Steve Barger · KeyBanc): He asked if free cash flow would fall if revenue grows faster because working capital must rise, or if customer funding and efficiency could keep free cash flow stable. He also asked what drives the low versus high end of the 6.5–7% operating margin goal.
A: They said teams are driving record low cash cycle days and they are confident in $100 million of free cash flow. They said they usually need about 15 to 20¢ of working capital for revenue growth and gave the example of adding $1.5 billion of revenue and $250 million of working capital. On margins they said watch the 8 to 12 flow-through on revenue growth and that investments are the balancing factor toward the lower end.
"we usually say we need about 15 to 20¢ of working capital for revenue growth." — David Abuhl (CFO)
Aerospace/defense and healthcare demand drivers
Q (Melissa Dailey Fairbanks · Raymond James): She asked whether recent aerospace and defense wins reflect new NATO spending or just technology shifts and new primes. She also asked if healthcare/life sciences is moving into new engagements beyond imaging and diagnostics.
A: They said it is a bit of both. They see defense spending flowing through to an extent and they like engagement with new primes and potential tailwinds from EU spending. For healthcare they said strong 2026 results and growth from therapeutics, monitoring, robotic surgical and pulsed-field ablation, plus an engineering funnel uptick that gives optimism.
"So we do see that defense spending flowing through to an extent." — Oliver K. Mihm (COO)
Commercial aerospace, LEO satellites, semi cap cycle
Q (Anja Soderstrom · Sidoti): She asked about current demand in commercial air and whether a meaningful comeback is in guidance. She also asked if the company has exposure to LEO satellites and where semi cap is in the cycle and visibility.
A: They said commercial aerospace shows slight incremental improvement but the full comeback is not yet included in guidance. They said they have strong exposure in LEO satellites and communications and expect growth there. On semi cap they cited roughly 50% fiscal year growth, expect even stronger calendar year growth, and said they have reasonable visibility for the next year while remaining cautious about cyclicality.
"We play strongly in LEO satellites and communication systems." — Shawn Matthew Harrison
Semi cap multi-year outlook and sources of growth
Q (David Williams · Needham and Co.): He asked if they see the same multi-year demand forecasts others mentioned out to 2029–2030 and if demand looks sustainable. He also asked how much growth is from customers increasing forecasts or from new programs.
A: They said the demand environment is good but they would not project out several years. They said they feel comfortable with fiscal 27 but remain conservative beyond that given cyclicality. They added that customers are strengthening forecasts, healthcare showed an uplift, and industrial and aerospace are generally strong, supporting their fiscal 27 outlook.
"The demand environment's good, but I think to project out several years would probably be a little bit too far at this point." — Todd Kelsey (CEO)
Top customer concentration and AI productivity initiatives
Q (Steve Barger · KeyBanc): He asked whether top-10 customer concentration rising to 56% means the company is becoming structurally more concentrated as it scales. He also asked for updates on AI and productivity work to raise revenue per square foot across regions.
A: They said no structural change; 56% is within historical range and 49% was a bit low, and top-10 growth reflected strong program ramps. They gave examples of productivity: the "excellence guide" drove a 110% year-over-year pickup in deployment, revenue per employee rose 25% comparing Q4 fiscal 24 to Q4 fiscal 26, machine utilization rose 12%, and an AI agent now handles about 80% of receipts, rolling from AMER into Asia Pacific and EMEA.
"For instance, revenue per employee up 25% if you compare Q4 fiscal 24 to Q4 of fiscal 26." — Oliver K. Mihm (COO)