Ichor (ICHR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $294.8 million, up 15% sequentially and 22.7%–24% year-over-year, driven by robust semiconductor equipment demand and expanded manufacturing capacity.

• Gross margin improved to 13.9%–14.1%, exceeding guidance and reflecting operational efficiencies and leverage.

• Net income for Q2 2026 was $1.0 million GAAP, reversing prior losses; non-GAAP net income was $12.2 million.

• EPS for Q2 was $0.03 GAAP and $0.34 non-GAAP, the highest in three years.

• Operational improvements, strategic footprint realignment, and restructuring drove record earnings and margin expansion.

Financial highlights

• Q2 2026 gross margin: 13.9% GAAP, 14.1% non-GAAP, up 130–260 basis points year-over-year.

• Operating margin improved to 2.4% GAAP and 5.5% non-GAAP, both up sequentially and year-over-year.

• Cash and equivalents at quarter end were $256–$256.5 million, up significantly from Q1, aided by a $195.4–$200 million ATM equity offering.

• Capital expenditures totaled $7.8 million for Q2 2026.

• Free cash flow for Q2 was $(23.6) million, reflecting increased inventory and receivables.

Outlook and guidance

• Q3 2026 revenue guidance is $315–$345 million, implying 12% sequential and 38% year-over-year growth at the midpoint.

• Gross margin guidance for Q3 is 14.5%–15.5%, with continued 100 basis point improvements per quarter expected.

• Q3 non-GAAP EPS guidance is $0.40–$0.50.

• Full-year 2026 revenue expected to grow at least 30% over 2025, with 2027 outlook also strong.

• Operating expenses expected to rise about 6% in 2026, mainly in R&D.