Earnings landed ahead of the published bar, driven by a real margin step-up. Diluted EPS was $0.19, above the published consensus of roughly $0.14–$0.15. Operating income more than doubled sequentially to $53.5 million, as gross margin expanded to 23.3% from 21.0% in Q1 and 19.5% a year ago. That is more meaningful than the headline profit alone: it shows the sales recovery is converting into better factory utilization and profitability. (Income Statement)
| Metric | Q2 2026 actual | Q1 2026 | Q2 2025 | Standing expectation / comparison |
|---|---|---|---|---|
| GAAP revenue | $888.6M | $839.2M | $762.3M | Below published consensus of roughly $897M–$900M; within prior company guidance of $875M–$905M (Income Statement) |
| Adjusted revenue | $918.6M | — | — | Above the prior guidance ceiling, after excluding $30.0M of tariff refunds passed through to customers (Adjusted Revenue reconciliation) |
| Gross margin | 23.3% | 21.0% | 19.5% | Above prior guidance midpoint of 22.0% and its stated range (Income Statement) |
| Diluted EPS | $0.19 | $0.05 | $0.01 | Above published consensus of roughly $0.14–$0.15 (Income Statement; Adjusted EPS reconciliation) |
| Adjusted EBITDA margin | 11.4% | 9.3% | 8.3% | Sharp sequential and year-over-year expansion (Adjusted EBITDA reconciliation) |
| Free cash flow | $10.3M | $(46.9)M | $(73.2)M | Improved, but still only modestly positive after heavy investment spending (Free Cash reconciliation) |
The revenue read is less clean than management’s “above guidance” framing suggests. Reported revenue of $888.6 million grew 5.9% sequentially and 16.6% year over year, but was modestly below the published revenue consensus. The company’s $918.6 million adjusted-revenue figure adds back $30.0 million of tariff refunds that were passed through to customers; that adjustment makes the quarter appear above the guidance ceiling, but it does not change the reported top line. Net result: demand and margins look stronger than the GAAP revenue comparison alone implies, yet this was not an unambiguous revenue beat. (Income Statement; Adjusted Revenue reconciliation)
The tariff item boosts adjusted revenue presentation, not profit. Vishay recorded $30.0 million of tariff refunds passed through to customers and an equal $30.0 million refund received from the U.S. government. The two entries offset in earnings and EBITDA, so the EPS beat was not created by this item; its main effect is on how revenue is presented versus management’s guide. (Adjusted EPS reconciliation; Adjusted EBITDA reconciliation)
Liquidity improved dramatically, but primarily because shareholders supplied capital. Cash rose to $1.30 billion from $515.0 million at year-end, largely reflecting $830.3 million of net proceeds from a follow-on equity offering—not internally generated cash. Operating cash flow improved to $105.4 million in the quarter, but capital expenditures remained high at $95.2 million, leaving only $10.3 million of free cash flow. The stronger balance sheet supports ongoing capacity investment, while the new equity also raises the share base used in per-share results. (Balance Sheet; Cash Flow statement; Free Cash reconciliation)
Net, this is better than expected on profitability but mixed on the top line. The margin beat and EPS outperformance outweigh the modest reported-revenue shortfall, particularly because tariff accounting obscures the underlying sales comparison. Still, the filing provides no new forward revenue or margin outlook, so it confirms an improving upcycle rather than materially resetting the market’s expectations for the next quarter. (Income Statement; Adjusted Revenue reconciliation)
Read the original 8-K on SEC EDGAR ↗