Shares of Benchmark Electronics (BHE) plummeted 5.58% in early trading on Wednesday following the release of its first-quarter 2025 earnings report. The company reported mixed results, with revenue declining but earnings meeting expectations, as global economic uncertainties continue to impact its business segments.

Benchmark Electronics reported Q1 revenue of $632 million, down 4% sequentially and 6% year-over-year, reflecting challenges across multiple sectors. While the Semi-Cap and Aerospace & Defense segments showed strong growth, up 18% and 15% year-over-year respectively, the Medical and Advanced Computing & Communications sectors experienced significant declines. Despite the revenue drop, the company managed to achieve non-GAAP earnings per share of $0.52, within its guidance range of $0.48 to $0.54.

The electronics manufacturing services provider faces headwinds from global tariff uncertainties, which are impacting customer decisions and potentially elongating the cycle for new bookings. Additionally, the company's medical sector experienced a 12% revenue decline quarter-over-quarter due to continued demand softness. These challenges, combined with a lower revenue base, led to a decrease in non-GAAP operating margin both sequentially and year-over-year. Adding to investor concerns, Needham cut its target price for Benchmark Electronics from $50 to $48, reflecting a more cautious outlook on the company's near-term prospects.