Diodes (NASDAQ:DIOD) Announces Quarterly Earnings Results

Key Points

• Diodes exceeded quarterly expectations: The semiconductor company reported EPS of $0.70 versus the $0.63 consensus estimate, while revenue reached $445.5 million, up 22% year over year. Gross margin also expanded to 33.1%.
• Management expects stronger third-quarter results, guiding for approximately $510 million in revenue and $1.05 in non-GAAP EPS. Growth is being driven by record automotive sales and rising demand for AI servers, data centers, networking and storage.
• The proposed Elevate Semiconductor acquisition is expected to be immediately accretive, add about $15 million in first-year revenue and bring above-average gross margins, while Diodes continues expanding capacity amid supply constraints.

Diodes (NASDAQ:DIOD - Get Free Report) released its earnings results on Wednesday. The semiconductor company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.63 by $0.07, FiscalAI reports. The business had revenue of $445.53 million during the quarter, compared to the consensus estimate of $436.60 million. Diodes had a return on equity of 3.48% and a net margin of 5.50%. 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 Stock Performance

Shares of NASDAQ:DIOD traded down $2.70 during midday trading on Wednesday, reaching $85.59. 539,352 shares of the company traded hands, compared to its average volume of 554,398. The company has a quick ratio of 1.97, a current ratio of 3.17 and a debt-to-equity ratio of 0.01. Diodes has a 12 month low of $42.28 and a 12 month high of $125.99. The firm has a market capitalization of $3.93 billion, a price-to-earnings ratio of 46.52 and a beta of 1.91. The firm's fifty day moving average price is $100.20 and its two-hundred day moving average price is $85.33.

Insiders Place Their Bets

In other news, CFO Brett R. Whitmire sold 16,556 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $103.34, for a total value of $1,710,897.04. Following the sale, the chief financial officer directly owned 44,632 shares of the company's stock, valued at approximately $4,612,270.88. This represents a 27.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Gary Yu sold 3,632 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $110.08, for a total transaction of $399,810.56. Following the completion of the transaction, the chief executive officer owned 108,147 shares of the company's stock, valued at $11,904,821.76. This trade represents a 3.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 70,981 shares of company stock worth $7,616,906 over the last quarter. Insiders own 1.70% of the company's stock.

Institutional Trading of Diodes

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

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DIOD. Zacks Research downgraded Diodes from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Robert W. Baird set a $120.00 price objective on shares of Diodes in a report on Friday, May 8th. Truist Financial increased their target price on shares of Diodes from $98.00 to $139.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Diodes in a research note on Wednesday, July 15th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Diodes currently has an average rating of "Moderate Buy" and an average target price of $113.00.

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.

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