The beat and raised guidance, particularly on adjusted EPS, confirm the diversification strategy is translating into margin expansion and earnings power. The stock should react positively; watch for continued momentum in diversified end markets and potential for further upward revisions as the year progresses. The 75% historical win rate on CTS calls adds confidence to the bullish read.
Price Chart
Executive Summary
CTS Corporation reported Q2 2026 revenue of $144.8M (+7% YoY) and GAAP diluted EPS of $0.66, beating the consensus estimate of $0.61 by 8.2%. The company raised its full-year 2026 adjusted EPS guidance from $2.35-$2.45 to $2.55-$2.70, driven by record adjusted gross margins of 41.5% (+270 bps YoY) and continued strength in diversified end markets, which grew 15% YoY and now represent 59% of total revenue.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $144.8M, up 7% YoY (consensus $143.4M)
- GAAP diluted EPS $0.66 vs consensus $0.61 (beat by 8.2%)
- Adjusted diluted EPS $0.74, up $0.17 YoY from $0.57
- Adjusted gross margin 41.5%, up 270 bps from 38.7% a year ago
- Adjusted EBITDA margin 25.4%, up 240 bps to a record
- FY2026 guidance raised: sales to $565-585M (from $560-580M), adjusted EPS to $2.55-2.70 (from $2.35-2.45)
- Diversified end-market sales grew 15% YoY, now 59% of total revenue
- Operating cash flow $33.4M, up $5.0M YoY
- Free cash flow $28.8M, up $3.7M YoY
Financial Impact
Revenue beat consensus by ~$1.4M (+1%), GAAP EPS beat by $0.05 (+8.2%), FY2026 adjusted EPS guidance midpoint raised ~9.4%.
Risk Factors
- Transportation sales declined 2% YoY, exposing the company to auto sector headwinds
- Analyst consensus is predominantly hold/sell (0% bullish), suggesting the stock may have limited near-term upside if already priced in
- Supply chain risks and geopolitical tensions could impact operations
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3334163 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 9w ago | 8-K | $64.82 $56.69 | ▼ −12.54% | ▼ −15.92% | $61.60 (−4.97%) |
Jul 28, 2026 9w ago | Press Release | $64.82 $56.69 | ▼ −12.54% | ▼ −15.92% | $61.60 (−4.97%) |
Jul 14, 2026 11w ago | Press Release | $60.05 $64.14 | ▲ +6.81% | ▲ +4.32% | $61.60 (+2.58%) |
Jun 25, 2026 14w ago | 8-K | $65.00 $60.92 | ▼ −6.28% | ▼ −7.54% | $61.60 (−5.23%) |
Apr 29, 2026 22w ago | 8-K | $54.43 $65.12 | ▲ +19.64% | ▲ +14.18% | $61.60 (+13.17%) |
Apr 29, 2026 22w ago | 8-K | $54.43 $64.79 | ▲ +19.03% | ▲ +12.99% | $61.60 (+13.17%) |
Apr 29, 2026 22w ago | Press Release | $54.43 $65.12 | ▲ +19.64% | ▲ +14.18% | $61.60 (+13.17%) |
Apr 14, 2026 24w ago | Press Release | $55.56 $61.49 | ▲ +10.67% | ▲ +4.38% | $61.60 (+10.87%) |
US Market Status
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