Diodes (NASDAQ:DIOD) Announces Earnings Results

Diodes (NASDAQ:DIOD) issued its quarterly earnings results on Wednesday. The semiconductor company reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.07, FiscalAI reports. The firm had revenue of $445.53 million for the quarter, compared to analyst estimates of $436.60 million. Diodes had a net margin of 5.50% and a return on equity of 3.48%. 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 Down 3.1%

Shares of DIOD stock traded down $2.70 on Wednesday, hitting $85.59. 539,352 shares of the company’s stock traded hands, compared to its average volume of 554,398. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of 46.52 and a beta of 1.91. The company’s fifty day simple moving average is $100.20 and its 200 day simple moving average is $85.33. Diodes has a one year low of $42.28 and a one year 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.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Robert W. Baird set a $120.00 target price on shares of Diodes in a research report on Friday, May 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Diodes in a research note on Wednesday, July 15th. Zacks Research cut Diodes from a “strong-buy” rating to a “hold” rating in a report on Monday, June 15th. Finally, Truist Financial increased their price objective on Diodes from $98.00 to $139.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Diodes presently has an average rating of “Moderate Buy” and a consensus target price of $113.00.

Insiders Place Their Bets

In other news, SVP Andy Tsong sold 1,582 shares of Diodes stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $106.95, for a total value of $169,194.90. Following the transaction, the senior vice president owned 48,170 shares in the company, valued at approximately $5,151,781.50. The trade was a 3.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Gary Yu sold 3,632 shares of the business’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 completion of the sale, the chief executive officer directly owned 108,147 shares of the company’s stock, valued at approximately $11,904,821.76. This trade represents a 3.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 70,981 shares of company stock valued at $7,616,906 over the last three months. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of Diodes

Several hedge funds and other institutional investors have recently bought and sold shares of DIOD. AQR Capital Management LLC boosted its stake in shares of Diodes by 12.4% during the first quarter. AQR Capital Management LLC now owns 6,028 shares of the semiconductor company’s stock valued at $260,000 after purchasing an additional 663 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Diodes by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 27,148 shares of the semiconductor company’s stock worth $1,172,000 after buying an additional 1,186 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Diodes by 13.8% in the first quarter. Goldman Sachs Group Inc. now owns 391,005 shares of the semiconductor company’s stock worth $16,880,000 after buying an additional 47,500 shares during the period. Woodline Partners LP bought a new stake in Diodes during the 1st quarter valued at $559,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Diodes by 6.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,719 shares of the semiconductor company’s stock valued at $4,521,000 after buying an additional 6,708 shares during the period. Institutional investors own 99.23% of the company’s stock.

Diodes Company Profile

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.