Diodes Q2 sales rise as semiconductor demand strengthens

Diodes Incorporated

05/08/2026 21:51

Overview
Semiconductor maker's preliminary Q2 revenue rose 22% yr/yr, non-GAAP EPS more than doubled
Company says growth driven by demand across all regions and cost initiatives
Company spent $10 mln on share buybacks in Q2

Outlook
Diodes expects Q3 2026 revenue of about $510 mln, plus or minus 3%
Company sees Q3 2026 GAAP gross margin at 35%, plus or minus 1%
Diodes forecasts Q3 2026 non-GAAP EPS of $1.05, plus or minus $0.10

Result Drivers
BROAD DEMAND - Co said revenue growth was driven by demand across all regions
AUTOMOTIVE, INDUSTRIAL, AI SERVER CONTENT - Co said expanding content in automotive, industrial and AI server-related applications contributed to results
COST INITIATIVES - Co said cost and operating initiatives implemented during market slowdown benefited gross margin and earnings

Company press release: ID:nBw7N9qq4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$445.53 mln
$435.50 mln (2 Analysts)
Q2 Adjusted EPS
Beat
$0.70
$0.60 (2 Analysts)
Q2 EPS
 
$1
 
Q2 Net Income
 
$46.65 mln
 
Q2 EBIT
 
$33.29 mln
 
Q2 Gross Profit
 
$147.57 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Diodes Incorporated is $129.50, about 46.7% above its August 4 closing price of $88.29
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads
Aug 4 - Lattice Semiconductor Q2 profit beats estimates on AI-related server demand
Aug 4 - Tower Semiconductor forecasts third-quarter revenue above estimates on AI chip demand
Aug 5 - Vishay Intertechnology Q2 revenue rises on strong demand across markets

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)