Diodes (NASDAQ:DIOD – Get Free Report) posted its quarterly earnings data on Wednesday. The semiconductor company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.63 by $0.07, FiscalAI reports. Diodes had a return on equity of 3.48% and a net margin of 5.50%.The firm had revenue of $445.53 million during the quarter, compared to the consensus estimate of $436.60 million. During the same period in the prior year, the business earned $0.32 EPS. The firm’s revenue was up 21.7% compared to the same quarter last year. Diodes updated its Q3 2026 guidance to 0.950-1.150 EPS.
Here are the key takeaways from Diodes’ conference call:
- Strong second-quarter growth: Revenue rose 22% year over year to $445.5 million and 10% sequentially, while non-GAAP EPS more than doubled year over year to $0.70. Gross margin expanded to 33.1%, up 160 basis points from the prior-year quarter.
- Management guided for continued acceleration in the third quarter, with revenue expected at approximately $510 million, up 30% year over year and 14% sequentially at the midpoint, alongside 35% GAAP gross margin and $1.05 non-GAAP EPS.
- Automotive revenue reached a record 21% of product revenue, rising more than 37% year over year, while computing revenue increased 33% as AI servers, data centers, networking, and storage drove demand. Diodes estimates its content opportunity across the broader AI infrastructure ecosystem at approximately $267 per platform.
- The proposed acquisition of Elevate Semiconductor is expected to be immediately accretive, add roughly $15 million of revenue in its first 12 months, and bring higher-than-corporate-average gross margins. Management forecasts Elevate revenue growth of more than 20% annually over the next four years.
- Demand is strong enough to create pockets of supply constraints, prompting Diodes to expand internal and outsourced wafer, assembly, and testing capacity. However, channel inventory declined in both dollars and weeks and remains below the company’s normal range, with management reporting no current evidence of double ordering.
Diodes Trading Up 18.4%
Shares of DIOD traded up $15.73 during trading hours on Thursday, hitting $101.32. The stock had a trading volume of 219,886 shares, compared to its average volume of 551,924. The company’s fifty day simple moving average is $99.73 and its 200 day simple moving average is $85.53. Diodes has a 12-month low of $42.28 and a 12-month high of $125.99. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.97 and a current ratio of 3.17. The firm has a market cap of $4.66 billion, a P/E ratio of 55.26 and a beta of 1.91.
Diodes News Summary
- Positive Sentiment: Q2 results exceeded expectations: Revenue rose 21.7% year over year to $445.5 million, above the $436.6 million consensus estimate. Adjusted EPS was $0.70, topping forecasts of $0.63, while GAAP net income was $46.6 million, or $1.00 per diluted share. Diodes Incorporated Reports Second Quarter 2026 Financial Results
- Positive Sentiment: Management projected substantial sequential growth: Third-quarter revenue guidance of approximately $510 million, plus or minus 3%, implies a significant increase from Q2 and is well above the roughly $471.3 million analyst consensus. Adjusted EPS guidance of $0.95 to $1.15 also exceeds the $0.81 consensus estimate. Diodes posts strong Q2 results, projects continued growth
- Positive Sentiment: Profitability and liquidity improved: Gross profit increased to $147.6 million, with a 33.1% gross margin. The company generated $68.5 million in operating cash flow and held approximately $442 million in cash, cash equivalents, restricted cash and short-term investments at quarter-end.
- Neutral Sentiment: Analyst valuation remains supportive but not risk-free: Diodes has received a consensus price target of $113, offering potential upside based on the reported trading level. However, the stock’s elevated valuation and recent volatility may make it sensitive to any disappointment in future guidance or demand trends. Diodes Receives $113 Consensus Price Target
- Negative Sentiment: Insider selling is a cautionary signal: Reported insider activity over the past six months included 22 sales and no purchases. While these transactions do not necessarily indicate weakening fundamentals, the absence of insider buying could temper investor enthusiasm.
Insiders Place Their Bets
In other news, CEO Gary Yu sold 3,632 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $110.08, for a total value of $399,810.56. Following the transaction, the chief executive officer directly owned 108,147 shares in the company, valued at approximately $11,904,821.76. This trade represents a 3.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Francis Tang sold 15,330 shares of the business’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $112.04, for a total value of $1,717,573.20. Following the sale, the chief technology officer directly owned 71,438 shares in the company, valued at $8,003,913.52. This trade represents a 17.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 70,981 shares of company stock valued at $7,616,906. Insiders own 1.70% of the company’s stock.
Institutional Trading of Diodes
Institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its stake in Diodes by 77.4% during the second quarter. EverSource Wealth Advisors LLC now owns 470 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 205 shares during the period. Geneos Wealth Management Inc. bought a new stake in Diodes in the second quarter valued at $30,000. Quarry LP bought a new position in shares of Diodes during the third quarter valued at $39,000. Kestra Advisory Services LLC acquired a new stake in shares of Diodes in the 4th quarter valued at $40,000. Finally, Global Retirement Partners LLC increased its position in shares of Diodes by 563.1% during the 4th quarter. Global Retirement Partners LLC now owns 809 shares of the semiconductor company’s stock worth $40,000 after purchasing an additional 687 shares in the last quarter. 99.23% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth
A number of brokerages have weighed in on DIOD. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Diodes in a report on Wednesday, July 15th. Zacks Research lowered Diodes from a “strong-buy” rating to a “hold” rating in a report on Monday, June 15th. Robert W. Baird set a $120.00 target price on Diodes in a report on Friday, May 8th. Finally, Truist Financial increased their price target on shares of Diodes from $98.00 to $139.00 and gave the company a “buy” rating in a report on Friday, May 8th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $113.00.
About Diodes
Diodes Incorporated (NASDAQ: DIOD) is a global manufacturer and supplier of high‐performance discrete, logic, analog and mixed‐signal semiconductor products. Headquartered in Plano, Texas, the company designs and develops a broad range of discrete components, standard logic functions, power management circuits, interface products and array products. Its portfolio includes rectifiers, MOSFETs, general‐purpose diodes, voltage regulators, comparators, buffers and other building blocks for electronic systems.
Diodes Incorporated serves a variety of end markets such as automotive, computing, communications, consumer electronics, industrial and lighting.
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