Diodes (NASDAQ:DIOD) Releases Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• Diodes reported record third-quarter revenue of $532.6 million, up 35.8% year over year, and EPS of $1.18—$0.13 above analyst expectations. Gross margin improved to 36.1% from 30.7% a year earlier.
• Management forecast fourth-quarter revenue of about $550 million and adjusted EPS of $1.35 at the midpoint, and expects full-year 2026 revenue to grow approximately 30%.
• Growth was broad-based, led by record automotive and computing revenue, but supply remains constrained and management noted soft notebook/PC demand and a weak China smartphone market.

Diodes (NASDAQ:DIOD - Get Free Report) issued its earnings results on Thursday. The semiconductor company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.13, Zacks reports. Diodes had a return on equity of 6.21% and a net margin of 6.51%. The company had revenue of $532.59 million during the quarter, compared to analysts' expectations of $512.94 million. During the same period in the prior year, the business posted $0.37 EPS. Diodes's quarterly revenue was up 35.8% compared to the same quarter last year.

Here are the key takeaways from Diodes' conference call:

• Diodes reported record third-quarter revenue of $532.6 million, up 36% year over year, while gross margin rose to 36.1% from 30.7%. Non-GAAP adjusted EPS increased to $1.18 from $0.37 a year earlier.
• Management forecast fourth-quarter revenue of about $550 million, plus or minus 3%, with non-GAAP gross margin of 37% and adjusted EPS of $1.35, each at the midpoint. The company expects full-year 2026 revenue to grow approximately 30% at the midpoint.
• Growth was broad-based: automotive revenue reached a record, up nearly 60% year over year, industrial rose 50%, and computing set a quarterly record, supported by AI servers, data centers, and storage. Management also cited gains in consumer and communications applications.
• Management attributed margin improvement to better product mix, pricing, and factory utilization, and said further gains are possible as capacity loads increase. It reiterated a long-term target model of 40% gross margin.
• Supply remains constrained and lead times extended, while channel inventory weeks are below Diodes’ normal range; management said customers are largely buying hand-to-mouth rather than rebuilding inventories. Notebook and PC demand is soft, and China’s smartphone market remains weak.

Diodes Trading Up 13.2%

Shares of NASDAQ DIOD traded up $9.00 during trading hours on Friday, hitting $77.36. The company's stock had a trading volume of 881,452 shares, compared to its average volume of 530,558. Diodes has a 12 month low of $42.28 and a 12 month high of $125.99. The stock has a market cap of $3.56 billion, a price-to-earnings ratio of 31.07 and a beta of 1.96. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.99 and a current ratio of 3.17. The business has a 50-day simple moving average of $90.04 and a 200-day simple moving average of $87.94.

More Diodes News

Here are the key news stories impacting Diodes this week:

• Positive Sentiment: Diodes reported record Q3 revenue of $532.6 million, up 35.8% year over year and 19.5% sequentially. Adjusted? No—reported earnings were $1.18 per share, beating the $1.05 consensus estimate; gross profit also rose to $192.5 million from $120.5 million a year earlier. Diodes Q3 2026 results
• Positive Sentiment: The company introduced dual-channel isolated gate drivers for half-bridge and independent gate-drive designs. The products expand Diodes’ offerings for switching applications, though the announcement did not provide sales or earnings projections. Dual-channel isolated gate drivers announcement
• Neutral Sentiment: Needham lowered its price target from $110 to $100 but maintained a Buy rating. The lower target is a modest reduction in analyst expectations, while the retained rating remains supportive. Needham analyst recommendations

Analyst Ratings Changes

A number of equities analysts have commented on DIOD shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Diodes in a research note on Tuesday, October 13th. Wells Fargo & Company set a $135.00 price objective on Diodes in a research note on Tuesday, October 6th. Robert W. Baird set a $192.00 target price on shares of Diodes in a report on Thursday, August 6th. Wall Street Zen raised shares of Diodes from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 24th. Finally, Zacks Research lowered shares of Diodes from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Diodes currently has a consensus rating of "Moderate Buy" and an average target price of $129.17.

Diodes Company Profile

Diodes Incorporated NASDAQ: DIOD is a semiconductor manufacturer that designs, manufactures and supplies discrete, analog, and mixed-signal semiconductor products. Its portfolio includes diodes, rectifiers, transistors, MOSFETs, power-management devices, protection products, logic components, LED drivers, and application-specific semiconductor solutions.

The company's products are used in power conversion and management, signal processing, circuit protection, lighting, automotive systems, communications equipment, and consumer and industrial electronics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.