Diodes (DIOD) Q2 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of double-digit year-over-year revenue growth, with Q2 2026 revenue up 22% year-over-year and 10% sequentially, reaching $445.5M, driven by strength in automotive, industrial, and AI server applications across all regions.

• Non-GAAP EPS more than doubled year-over-year to $0.70, and GAAP EPS was $1.00, both showing significant improvement from prior periods.

• Automotive revenue reached a record 21% of product revenue, with consistent market share gains and 37% year-over-year growth.

• Announced proposed acquisition of ElevATE Semiconductor, expected to be immediately accretive, add ~$50M in revenue in the first year, and expand product offerings in ATE.

• Strong balance sheet with $442M in cash, $931M working capital, and $40M total debt.

Financial highlights

• Q2 2026 revenue was $445.5M, up 22% year-over-year and 10% sequentially; GAAP gross profit was $147.6M (33.1% margin), up from $115.3M (31.5%) a year ago.

• GAAP net income was $46.6M ($1.00 per diluted share); non-GAAP adjusted net income was $32.5M ($0.70 per share).

• EBITDA was $83.5M (18.7% of revenue); cash flow from operations was $68.5M; free cash flow was $34.8M after $33.6M in capex.

• Cash, equivalents, and short-term investments totaled $442M; working capital was $931M; total equity was $2.02B as of June 30, 2026.

• Operating expenses were 25.6% of revenue (GAAP) and 24.4% (non-GAAP); effective tax rate for Q2 was 12.3%.

Outlook and guidance

• Q3 2026 revenue is expected to be approximately $510M (±3%), up 30% year-over-year and 14% sequentially, with GAAP gross margin projected at 35% (±1%) and non-GAAP adjusted EPS expected to be $1.05 (±$0.10).

• Management anticipates continued growth across all end markets, especially AI-related applications, automotive, and industrial.

• Company reiterates 3-year targets: $2B annual revenue, $700M gross profit, 35%+ gross margin, and $4.00+ non-GAAP EPS.

• Capital expenditures for 2026 are projected to be 5–9% of net sales.

• Management expects liquidity and borrowing capacity to cover working capital, capex, and acquisitions for at least the next 12 months.