Diodes (DIOD) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue was $532.6M, up 35.8% YoY and 19.5% QoQ; non-GAAP diluted EPS was $1.18, up 219% YoY.

• Automotive and computing revenue reached records; stronger industrial demand, AI momentum, market-share gains, pricing and higher factory loading supported growth.

• Q4 guidance calls for $550M revenue at the midpoint, 37% non-GAAP gross margin and $1.35 adjusted EPS.

Financial highlights

• Revenue was $532.6M versus $392.2M in Q3 2025 and $445.5M in Q2 2026; non-GAAP gross profit was $192.9M.

• GAAP gross profit was $192.5M and margin 36.1%; non-GAAP gross margin was 36.2%, excluding $0.4M of acquisition-related inventory accounting.

• GAAP net income was $43.7M, or $0.95 per diluted share; non-GAAP adjusted net income was $54.5M, or $1.18 per diluted share.

• EBITDA was $89.7M, or 16.8% of revenue; operating cash flow was $97.2M and free cash flow was $43.9M after $53.2M of capex.

• 9M revenue was $1.384B, up 26.9% YoY; common-stockholder net income was $105.3M and diluted EPS was $2.27.

Outlook and guidance

• Q4 revenue guidance is $550M ±3%, up 3.2% sequentially and 40.4% YoY at the midpoint; non-GAAP gross margin is guided to 37% ±1%.

• Q4 non-GAAP adjusted EPS guidance is $1.35 ±$0.10; growth would exceed typical Q4 seasonality.

• FY 2026 revenue is expected to rise ~30% versus 2025 at the midpoint; expected full-year tax rate remains ~18% ±3%.

• Margin improvement is expected from higher revenue and fab loading, favorable product mix, manufacturing efficiency and market-share gains.

• FY 2026 capital expenditures are expected within the target range of 5%–9% of net sales.