Shares of CTS Corporation rose 5.2% following first quarter results that reflected notable upside in top-line growth and significant margin expansion. Outperformance in diversified end markets, especially medical and industrial, along with a 250bps increase in gross margin, resonated positively with investors.

• First quarter sales reached $139 million, up 11% year-over-year, with diversified market revenues increasing 18% and medical end market sales up 28%.
• Gross margin expanded by 250 basis points, contributing to adjusted diluted EPS of $0.62, up from $0.44 last year.
• Book-to-bill ratio finished at 1.1 for the quarter, supported by strong industrial and medical bookings (medical book-to-bill at 1.2).
• Management narrowed full-year 2026 sales guidance to $560–$580 million and adjusted EPS to $2.35–$2.45, while continuing to monitor geopolitical and supply chain risks.
• Transportation revenue grew 3%, with new awards in Europe, although management noted a cautious outlook for global vehicle volumes in light of challenging macro conditions.