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DIOD · SEMICONDUCTORS & RELATED DEVICES · 8-K · Item 2.02 · Aug 5, 2026

Revenue and adjusted EPS beat guidance; Q3 outlook moves materially higher

DIODES INC /DEL/ (DIOD) — AllSight decodes this SEC 8-K in plain English, versus what the market expected.

The quarter landed near the high end of expectations. Management had guided for roughly $435 million of revenue, 32.8% gross margin, and $0.60 non-GAAP EPS for Q2. Actual revenue was $445.5 million, gross margin was 33.1%, and adjusted EPS was $0.70 — revenue was near the top of the guidance range and EPS reached its upper bound. The published consensus was also about $0.60 for adjusted EPS, making the earnings beat clear.

MetricQ2 2026 actualComparison / expectation
Revenue$445.5M$435M midpoint guidance; $366.2M prior year (Financial Highlights)
GAAP gross margin33.1%32.8% midpoint guidance; 31.5% prior year (Second Quarter Revenue)
Non-GAAP adjusted EPS$0.70$0.60 midpoint guidance and consensus; $0.32 prior year (Reconciliation of Net Income to Adjusted Net Income)
Operating income$33.3M$9.4M prior year (Consolidated Statements of Operations)
EBITDA$83.5M$84.5M prior year; margin fell to 18.7% from 23.1% (EBITDA Reconciliation)
Free cash flow$34.8M$33.6M capital expenditures (Cash Flow Items)
Q3 revenue outlookApproximately $510M ±3%14% sequential growth at midpoint (Business Outlook)
Q3 non-GAAP EPS outlook$1.05 ±$0.10Published consensus approximately $0.83 (Business Outlook)

The underlying operating recovery is stronger than the GAAP headline suggests. GAAP net income was essentially flat year over year at $46.6 million versus $46.1 million, but that comparison is distorted by investment gains. Excluding investment gains and other unusual items, adjusted EPS more than doubled to $0.70 from $0.32, while operating income rose sharply as gross margin improved 160 basis points and operating expenses fell to 25.6% of revenue from 28.9% (Second Quarter Revenue; Reconciliation of Net Income to Adjusted Net Income).

The main quality caveat is that profitability has not fully caught up with the revenue growth. Revenue increased 21.7% year over year, but EBITDA was slightly lower and EBITDA margin contracted 440 basis points. That suggests the improvement is real at the gross-profit and operating-income level, but the business has not yet converted the full sales rebound into EBITDA leverage (EBITDA Reconciliation).

The forward reset is the most important part of the filing. Q3 guidance calls for approximately $510 million of revenue, 35.0% gross margin, and $1.05 adjusted EPS. The EPS outlook is well above the published consensus of roughly $0.83, implying that expectations were not fully positioned for the pace of margin recovery. No dependable published revenue consensus was available in the materials reviewed, so the revenue read is best framed as an acceleration from Q2 rather than as a quantified consensus beat.

Net read: a meaningful positive surprise, led by earnings and forward guidance. Q2 itself beat the company's prior targets, but the larger change is that management now points to another substantial sequential step-up in revenue and margins. The filing is preliminary and unaudited, so the reported figures remain subject to revision (Business Outlook; Preliminary Results Notice).

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