Diodes Incorporated

Second-quarter 2026 revenue was $445.5 million, up 22% from $366.2 million a year ago and up 10% from $405.5 million in Q1 2026. Gross profit was $147.6 million, or 33.1% of revenue, versus $115.3 million, or 31.5%, in the prior-year quarter. GAAP net income was $46.6 million, or $1.00 per diluted share, versus $46.1 million, or $0.99 per share, a year ago; non-GAAP adjusted net income was $32.5 million, or $0.70 per diluted share, versus $15.0 million, or $0.32 per share, last year. Cash from operations was $68.5 million, free cash flow was $34.8 million, and cash plus short-term investments totaled about $442 million at quarter end. For Q3, Diodes expects revenue of about $510 million, plus or minus 3%, GAAP gross margin of 35%, plus or minus 1%, and non-GAAP adjusted EPS of $1.05, plus or minus $0.10.

Gary Yu framed the quarter as evidence of continuing momentum, saying revenue grew more than 20% year over year for the fifth straight quarter and that the company is seeing strengthening demand across all regions. He emphasized expanding content in automotive, industrial, and AI server-related applications, plus improving utilization and cost actions that are lifting gross margin and earnings. He also highlighted the proposed ElevATE acquisition as immediately accretive and a way to broaden Diodes’ portfolio and increase exposure to higher-margin ATE applications.

Brett Whitmire said Q2 revenue was $445.5 million, gross profit was $147.6 million, and gross margin improved to 33.1% from 31.5% a year ago and 31.8% in Q1. He noted GAAP operating expenses of $114.3 million and non-GAAP operating expenses of $108.6 million, along with other income of about $24.7 million, including a $20 million unrealized gain on investments. Cash flow from operations was $68.5 million, free cash flow was $34.8 million after $33.6 million of capex, and cash plus short-term investments were about $442 million, while total debt was about $40 million. He also said inventory days fell to about 152 from 157 last quarter, and reiterated a full-year tax rate expectation of about 18%, plus or minus 3%.

Analysts focused on wafer fab utilization, capacity, supply constraints, and whether strong demand might be causing double ordering. Management said the SPFAB is seeing improving loading and that key customers are beginning to use its output, but they do not typically provide separate P&L for that fab. On supply and capacity, management acknowledged pockets of constraint but said it is adding capacity through internal wafer fabs, 6-inch to 8-inch migration, external foundry partners in Korea and Taiwan, and selective assembly/test expansion. On channel inventory, Emily Yang said inventory declined in both dollars and weeks, was below the normal 11-14 week range, and that they do not see double booking or double shipments building up.