Diodes Incorporated Reports Third Quarter 2026 Financial Results
DIODES INC /DEL/ (DIOD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Diodes Incorporated Reports Third Quarter 2026 Financial Results Achieves Record Quarterly Revenue with 36% YoY Growth; Non-GAAP EPS Increases over 200% Plano, Texas – November 5, 2026 -- Diodes Incorporated (Diodes) (Nasdaq: DIOD) today reported its financial result
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The earnings beat and issued outlook are likely to drive short‑term buying pressure, while the new debt issuance may temper enthusiasm among value‑focused investors.
Market read
First‑report earnings with strong growth metrics provide fresh trading impetus for DIOD and may influence related semiconductor stocks.
What to watch
The $375M convertible note issuance could increase dilution risk if equity conversion occurs.
Achieves Record Quarterly Revenue with 36% YoY Growth; Non-GAAP EPS Increases over 200%
Record quarterly revenue increased 35.8% year-over-year and 19.5% sequentially, while GAAP gross margin expanded 540 basis points year-over-year to 36.1%. Non-GAAP EPS rose to $1.18 per diluted share from $0.37 per diluted share a year earlier, and fourth-quarter guidance calls for further revenue and non-GAAP gross-margin expansion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 revenueGAAP | $532.6M | 19.5% | 35.8% |
| Nine months ended September 30, 2026 net salesGAAP | $1.38B | – | – |
| Third quarter 2026 GAAP gross profitGAAP | $192.5M | – | – |
| Third quarter 2026 GAAP gross profit marginGAAP | 36.1% | 300 basis points | an increase of 540 basis points |
| Third quarter 2026 non-GAAP gross profitnon-GAAP | $192.9M | – | – |
| Third quarter 2026 non-GAAP gross profit marginnon-GAAP | 36.2% | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $468.8M | – | – |
| Third quarter 2026 GAAP operating expensesGAAP | $129.1 million, or 24.2% of revenue | – | – |
| Third quarter 2026 non-GAAP operating expensesnon-GAAP | $122.1 million, or 22.9% of revenue | – | – |
| Nine months ended September 30, 2026 total operating expenseGAAP | $352.4M | – | – |
| Third quarter 2026 income from operationsGAAP | $63.41M | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $116.5M | – | – |
| Third quarter 2026 GAAP net income attributable to common stockholdersGAAP | $43.7M | – | – |
| Nine months ended September 30, 2026 net income attributable to common stockholdersGAAP | $105.3M | – | – |
| Third quarter 2026 non-GAAP adjusted net incomenon-GAAP | $54.5M | – | – |
| Nine months ended September 30, 2026 non-GAAP adjusted net incomenon-GAAP | $106.8M | – | – |
| Third quarter 2026 GAAP basic earnings per shareGAAP | $0.95 | – | – |
| Third quarter 2026 GAAP diluted earnings per shareGAAP | $0.95 per diluted share | – | – |
| Third quarter 2026 non-GAAP diluted earnings per sharenon-GAAP | $1.18 per diluted share | 68.6% | 219% |
| Nine months ended September 30, 2026 GAAP basic earnings per shareGAAP | $2.29 | – | – |
| Nine months ended September 30, 2026 GAAP diluted earnings per shareGAAP | $2.27 | – | – |
| Nine months ended September 30, 2026 non-GAAP diluted earnings per sharenon-GAAP | $2.30 | – | – |
| Third quarter 2026 EBITDAnon-GAAP | $89.7 million, or 16.8% of revenue | – | – |
| Nine months ended September 30, 2026 EBITDAnon-GAAP | $222.7M | – | – |
| Third quarter 2026 net cash provided by operating activitiesGAAP | $97.2M | – | – |
| Third quarter 2026 free cash flownon-GAAP | $43.9M | – | – |
| Third quarter 2026 capital expendituresother | $53.2M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 outlook
- Revenueapproximately $550 million, plus or minus 3%
- Gross marginNon-GAAP gross margin is expected to expand to 37.0%, plus or minus 1%
- NoteNon-GAAP adjusted EPS is expected to be $1.35, plus or minus $0.10.
- NoteFull year revenue to increase approximately 30% over 2025 at the mid-point.
- NoteRevenue guidance represents a 40.4% increase year-over-year and a 3.2% increase sequentially at the mid-point.
Capital returns
- Net cash flow was positive $134.1 million, which includes approximately $35 million for the stock buyback program.
- Completed a private placement of 0.00% Convertible Senior Notes due 2031 in the aggregate principal amount of $375 million.
What drove it
- Record automotive revenue from continued market share gains.
- Stronger demand across broad industrial applications.
- Sustained momentum in AI ecosystem applications that contributed to record revenue in the computing market.
- Targeted investments in capacity expansion over the past year coming online.
- Increase in loading at manufacturing facilities, product mix and pricing improvements benefited gross margin.
- Successfully completed the acquisition of ElevATE Semiconductor, a provider of high-performance integrated circuits for the Automated Test Equipment market.
Concerns
- GAAP net income was $43.7 million in the third quarter 2026, compared with $46.6 million in the prior quarter.
- EBITDA was 16.8% of revenue in the third quarter 2026, compared with 18.7% of revenue in the prior quarter.
- Third-quarter non-GAAP adjusted net income excluded, net of tax, a $7.9 million unrealized loss on investments, $4.2 million of acquisition-related intangible asset amortization cost, $3.0 million gain on disposal of a subsidiary, $1.4 million of acquisition-related costs and $0.3 million of acquisition-related inventory amortization cost.
- The results are preliminary and unaudited and are subject to revision until the Company files its Form 10-Q for the quarter ending September 30, 2026.
What to watch
- Fourth-quarter revenue performance against approximately $550 million, plus or minus 3%.
- Whether non-GAAP gross margin reaches 37.0%, plus or minus 1%, after 36.2% in the third quarter.
- Delivery of fourth-quarter non-GAAP adjusted EPS of $1.35, plus or minus $0.10.
- Continued automotive market-share gains, industrial demand and AI ecosystem application momentum.
- Realization of expected benefits and integration progress from the ElevATE Semiconductor acquisition.
- Manufacturing facility loading, product mix and pricing as contributors to gross-margin performance.
Balance sheet and cash flow
- As of September 30, 2026, the Company had approximately $578 million in cash and cash equivalents, restricted cash, and short-term investments.
- Total debt (including long-term and short-term) amounted to approximately $405 million (including $364.9 million from 0.00% Convertible Senior Notes, net of issuance costs).
- Working capital was approximately $1.1 billion.
- Cash and cash equivalents were $563,382 (in thousands) as of September 30, 2026.
- Restricted cash was $2,768 (in thousands) as of September 30, 2026.
- Short-term investments were $11,468 (in thousands) as of September 30, 2026.
- Line of credit was $21,029 (in thousands) as of September 30, 2026.
- Current portion of long-term debt was $1,571 (in thousands) as of September 30, 2026.
- Long-term debt, net of current portion was $381,909 (in thousands) as of September 30, 2026.
Analysis
Diodes reported record third-quarter revenue of $532.6 million, up 35.8% from $392.2 million in the third quarter 2025 and 19.5% from $445.5 million in the second quarter 2026. Management attributed the sequential expansion to record automotive revenue and continued market-share gains, stronger broad industrial demand and sustained AI ecosystem application momentum in computing. Global POS was also described as a record and as increasing more than 30% year-over-year.
Gross-profit performance strengthened materially. GAAP gross margin was 36.1%, up 540 basis points from 30.7% a year earlier and 300 basis points from 33.1% in the prior quarter. Non-GAAP gross margin was 36.2%, excluding $0.4 million of inventory accounting associated with the ElevATE Semiconductor acquisition. Management cited higher manufacturing loading as capacity investments came online, as well as product mix and pricing improvements, as contributors to the margin performance.
Earnings expanded sharply year-over-year but GAAP net income was below the immediately preceding quarter. GAAP net income was $43.7 million, versus $14.3 million a year earlier and $46.6 million in the prior quarter. Non-GAAP adjusted net income increased to $54.5 million from $17.2 million a year ago and $32.5 million sequentially, while non-GAAP EPS rose to $1.18 per diluted share from $0.37 per diluted share and $0.70 per diluted share, respectively. EBITDA reached $89.7 million, or 16.8% of revenue, compared with $46.6 million, or 11.9% of revenue, a year earlier, but below the prior quarter's 18.7% of revenue.
Cash generation supported capacity investment, acquisition activity and repurchases. The company generated $97.2 million of operating cash flow and $43.9 million of free cash flow after $53.2 million of capital expenditures. Net cash flow was positive $134.1 million and included approximately $35 million for the stock buyback program. At September 30, 2026, Diodes reported approximately $578 million in cash, cash equivalents, restricted cash and short-term investments, approximately $405 million of total debt and approximately $1.1 billion of working capital.
Fourth-quarter guidance calls for approximately $550 million of revenue, plus or minus 3%, non-GAAP gross margin of 37.0%, plus or minus 1%, and non-GAAP adjusted EPS of $1.35, plus or minus $0.10. Management said the revenue midpoint represents 40.4% year-over-year growth and 3.2% sequential growth, while the non-GAAP gross-margin midpoint represents an 80-basis-point sequential expansion. The company also expects full-year revenue to increase approximately 30% over 2025 at the midpoint.
Management, verbatim
Our third quarter revenue reached record levels coupled with an over 500-basis point year-over-year increase in gross margin to 36.1%, driving significant expansion in non-GAAP earnings. Global POS was also a record in the quarter, increasing more than 30% year-over-year.
Gary Yu, President and CEO of Diodes
Based on our current projections for continued growth in the fourth quarter, we expect full year revenue to increase approximately 30% over 2025 at the mid-point.
Gary Yu, President and CEO of Diodes
For the fourth quarter of 2026, we expect to extend our strong growth momentum with revenue expected 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 mid-point.
Gary Yu, President and CEO of Diodes
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparison of actual results with prior guidance is unavailable.
- Segment revenue, segment profitability and segment-level growth rates were not reported.
- Dividend information was not reported.
- Fourth-quarter operating-expense guidance was not reported.
- Fourth-quarter tax-rate guidance was not reported.
- A quantitative reconciliation of forward-looking non-GAAP adjusted EPS to the most directly comparable GAAP measure was not provided.
- Cash-flow comparisons with the prior-year or prior-quarter periods were not reported.
- Third-quarter GAAP operating-income comparison with the prior quarter was not reported.
- Third-quarter non-GAAP gross-profit and operating-expense comparisons with prior-year and prior-quarter periods were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Diodes Incorporated (Nasdaq: DIOD) filed a Form 8‑K announcing its Q3 2026 financial results, including a record revenue increase and a private placement of convertible notes.
Ticker impact
Diodes Incorporated reported record Q3 2026 revenue of $532.6M, 35.8% YoY growth, and issued guidance for Q4 revenue to ~$550M.
likely upward pressure as the market prices in the issued guidance and record earnings.
The 200% YoY jump in non‑GAAP EPS and a 40% revenue increase signal robust growth, prompting traders to consider buying on the post‑earnings rally.
Market effects
Positive earnings may lift the broader semiconductor and industrial components sector.
U.S. markets may see a modest gain in tech‑hardware stocks.
Limited to investors tracking U.S. semiconductor earnings.
Counterpoint
If the market has already priced in the strong results, any miss on future guidance could trigger a pullback.
Key entities
- ExecutiveGary Yu
President and CEO of Diodes, provided commentary on the results and outlook.
