Q2 2026 Diodes Incorporated Earnings Call Transcript
Key Points
- Revenue grew 22% year-over-year and 10% sequentially, marking the sixth consecutive quarter of double-digit growth.
- Automotive revenue hit a record 21% of product revenue, with strong market share gains across regions.
- Gross margin expanded 160 basis points year-over-year, with another 190 basis point sequential improvement expected in Q3.
- Non-GAAP EPS more than doubled year-over-year, with Q3 guidance implying a 2.8x year-over-year increase.
- The proposed acquisition of Elevate Semiconductor is expected to be immediately accretive, adding ~$50 million in revenue and expanding into the high-growth ATE market.
- Communication market revenue declined 7% sequentially and 3% year-over-year due to soft smartphone demand in China.
- Consumer market remains challenged by memory shortages and slower demand, limiting growth potential.
- Channel inventory is below the normal range, indicating potential supply constraints that could limit near-term shipments.
- The company faces pockets of supply constraints, particularly in power products, which could hinder ability to fully meet strong demand.
- Total inventory days remain high at 152, with increased raw material and work-in-process levels, posing a risk of excess inventory if demand softens.
Good afternoon and welcome to DIODES Incorporated Second Quarter 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question-and-answer session. If anyone needs assistance at any time during the conference call. Please press the star key followed by the zero on your touchtone phone. As a reminder, this conference call is being recorded today, Wednesday, August 5, 2026. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.
Good afternoon, and welcome to Dyode's second quarter 2026 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Dyode's investor relations firm. Joining us today are Dyode's President and CEO, Gary Yu, CFO, Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing, Emily Yang, and Vice President of Marketing and Investor Relations, Girmeet
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