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Diodes (DIOD) Q3 2026 Earnings Report

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DIOD Q3 2026 EPS Results

Actual EPS
$1.18
Consensus EPS
$1.08
Beat/Miss
Beat by +$0.10
One Year Ago EPS
$0.37

DIOD Q3 2026 Revenue Results

Actual Revenue
$532.59M
Expected Revenue
$512.94M
Beat/Miss
Beat by +$19.65M
YoY Revenue Growth
+35.81%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/05/2026
Time
After Close
Conference Call
Thursday, November 5, 2026
DIOD Upcoming Earnings

Diodes's next earnings date is estimated for February 16, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DIOD Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 05, 2026|% Change Since:27.63%|
Earnings Call Sentiment|Positive

The call was strongly positive overall. Management reported record revenue, broad-based growth across automotive, industrial, computing, consumer, and communication markets, substantial gross-margin expansion, strong cash generation, and above-seasonal fourth-quarter guidance. The main challenges were extended lead times, constrained supply, softness in mobile, notebook, PC, and China smartphone demand, below-normal channel inventory, and investment and foreign-currency losses, but these issues were outweighed by the company's reported growth and outlook.

Company Guidance

For the fourth quarter, Diodes expects revenue to increase to approximately $550 million plus or minus 3%, representing a 40.4% increase year over year and a 3.2% increase sequentially at the midpoint; non GAAP gross margin is expected to expand to 37% plus or minus 1%, and non GAAP adjusted EPS is expected to be $1.35, plus or minus $0.10. Based on this projection, full year revenue is expected to increase approximately 30% over 2025 at the midpoint, with more than 3% quarter over quarter growth compared to the usual 5% to 6% down; the full-year tax rate is expected to remain at approximately 18% plus or minus 3%, capital expenditures are targeted at an annualized range of 5 to 9% of revenue, and the target model is USD 2.5 billion with a 40% margin.

  • Record Revenue and Strong Year-Over-Year GrowthThird-quarter revenue reached a record $533 million, increasing approximately 36% from $392 million in the prior-year quarter and approximately 20% from $446 million in the second quarter of 2026.
  • Record Global POS and Strong DemandGlobal point-of-sale reached a record level, increasing more than 30% year over year. Management said demand was very strong across all regions and that third-quarter results exceeded the midpoint of guidance.
  • Gross Margin ExpansionThird-quarter GAAP gross margin increased to 36.1% from 30.7% in the prior-year quarter and 33.1% in the prior quarter. Management attributed the improvement to product mix, pricing adjustments, capacity utilization, and higher manufacturing loading. Fourth-quarter non-GAAP gross margin is guided to 37% plus or minus 1%.
  • Significant Earnings GrowthGAAP net income was $43.7 million, or $0.95 per diluted share, compared with $14.3 million, or $0.31 per diluted share, in the prior-year quarter. Non-GAAP adjusted net income was $54.5 million, or $1.18 per diluted share, compared with $17.2 million, or $0.37 per diluted share, in the prior-year quarter.
  • Fourth-Quarter and Full-Year Growth OutlookFourth-quarter revenue is expected to be approximately $550 million plus or minus 3%, representing a 40.4% year-over-year increase at the midpoint and a 3.2% sequential increase. Non-GAAP adjusted EPS is expected to be $1.35 plus or minus $0.10. Full-year 2026 revenue is expected to increase approximately 30% over 2025 at the midpoint.
  • Automotive Revenue Reached a RecordAutomotive revenue grew 26% sequentially and almost 60% year over year to reach a quarterly record, driven by content expansion and market share gains. Design-win momentum continued across ADAS, telematics, infotainment, digital cockpit, lighting, body electronics, safety, EV power systems, onboard charging, and battery-related applications.
  • Industrial Market Growth and New Design WinsIndustrial revenue increased 20% sequentially and 50% year over year. Growth was supported by AI infrastructure, automation, energy, smart metering, robotics, power management, smart buildings, and other applications. Diodes also secured a humanoid robotics design-in for its level shifter portfolio.
  • AI Infrastructure and Computing MomentumComputing revenue increased 16% sequentially and 33% year over year to a quarterly record. AI server, data center, enterprise storage, PCIe packet switches, PCIe 6.0 and 7.0 timing products, NVMe SSDs, power management, protection, and thermal management all contributed to the stated opportunity. Management said AI server, data center, and enterprise storage demand should continue driving fourth-quarter momentum.
  • Consumer Market GrowthConsumer revenue increased more than 20% sequentially and 30% year over year. Growth was supported by premium home audio, consumer controls, energy-efficient lighting, USB-C power, and protection products.
  • Communication Market Growth and Higher-Speed NetworkingCommunication revenue increased 10% sequentially and approximately 6% year over year. AI-driven networking remained strong, including demand for 800-gigabit optical modules and the beginning of the 1.6T ramp, creating opportunities for connectivity, timing, and level-shifting products.
  • Pericom and ElevATE ContributionsPericom product revenue reached a record high and was greater than three times the level since the acquisition. Through the ElevATE Semiconductor acquisition, Diodes is benefiting from what management described as one of the strongest growth cycles in the semiconductor automated test equipment market, supported by differentiated high-voltage products and new product introductions.
  • Capacity Expansion and Higher Unit ShipmentsCapacity investments made over the past year came online and supported higher manufacturing loading, revenue growth, and gross-margin improvement. Calendar-year 2025 shipments were approximately 45 billion units, while the third-quarter run rate was approximately 60 billion units.
  • Improved Operating Expense LeverageGAAP operating expenses were $129 million, or 24.2% of revenue, compared with $109 million, or 27.8% of revenue, in the prior-year quarter. Non-GAAP operating expenses were $122 million, or 22.9% of revenue, compared with 24.4% of revenue in the prior quarter.
  • Strong Operating Cash Flow and Balance Sheet LiquidityCash flow from operations was $97.2 million and free cash flow was $43.9 million, including $53.2 million of capital expenditures. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately $578 million at quarter-end.
  • Convertible Notes Financing and Share RepurchaseDiodes completed a private placement of $375 million of 0% convertible senior notes due 2031, generating net proceeds of $343 million after issuance costs and capped-call premiums. The company used $35 million of the proceeds to repurchase 360,000 common shares.
  • Inventory Days DeclinedTotal inventory days decreased by 11 days to approximately 141 days from 152 days in the prior quarter. Finished-goods inventory days declined to approximately 44 days from 51 days.
  • Diversified End-Market Mix and Long-Term TargetsThird-quarter product revenue was 27% computing, 24% industrial, 22% automotive, 17% consumer, and 10% communication. Automotive and industrial together represented 46% of product revenue, up 2 percentage points from the prior quarter. Management said the company remains on track toward its target model of $2.5 billion in revenue with a 40% margin.
  • Tax Rate Remains Within Full-Year ExpectationThe third-quarter effective income tax rate was approximately 23.2%. Management continued to expect the full-year 2026 tax rate to remain approximately 18% plus or minus 3%.

DIOD Earnings History

DIOD earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 16, 20272026 (Q4)1.35-0.34――
Nov 05, 20262026 (Q3)1.081.180.37218.92% (+0.81)
Aug 05, 20262026 (Q2)0.630.700.32118.75% (+0.38)
May 07, 20262026 (Q1)0.350.430.19126.32% (+0.24)
Feb 10, 20262025 (Q4)0.280.340.2725.93% (+0.07)
Nov 06, 20252025 (Q3)0.400.370.43-13.95% (-0.06)
Aug 07, 20252025 (Q2)0.270.320.33-3.03% (-0.01)
May 08, 20252025 (Q1)0.150.190.28-32.14% (-0.09)
Feb 11, 20252024 (Q4)0.360.270.51-47.06% (-0.24)
Nov 07, 20242024 (Q3)0.420.431.13-61.95% (-0.70)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed