Ichor Holdings, Ltd. (ICHR) · Nov 2, 2026 · Earnings
Beat — Non-GAAP diluted EPS $0.63 vs ~$0.45 consensus
Ichor earnings show a powerful profit rebound and higher Q4 outlook, but revenue narrowly missed consensus and free cash flow stayed deeply negative.
Ichor is a semiconductor capital-equipment supplier in the early stages of a sharp demand recovery, while realigning manufacturing into higher-volume sites and trying to lift proprietary content. The prior setup already called for a strong Q3 ramp: published expectations were roughly $330.15 million of revenue and $0.45 of EPS, while the company had guided to sequential growth and improving margins.
The earnings beat is meaningful, but it is an EPS beat rather than a clean top-line win. Revenue reached $328.7 million, narrowly below the roughly $330.15 million consensus, but non-GAAP diluted EPS came in at $0.63 versus about $0.45 expected. That implies the operating model is converting incremental volume into profit faster than expected, even though demand did not quite clear the revenue bar.
| Metric | Q3 2026 | Q2 2026 | Consensus |
|---|---|---|---|
| Revenue (Financial Results) | $328.7M | $294.8M | ~$330.2M |
| Non-GAAP diluted EPS (Non-GAAP Financial Results) | $0.63 | $0.34 | ~$0.45 |
| GAAP diluted EPS (GAAP Financial Results) | $0.55 | $0.03 | |
| Non-GAAP operating margin (Non-GAAP reconciliation) | 8.6% | 5.5% | |
| Free cash flow (Free Cash Flow reconciliation) | $(39.5)M | $(23.6)M |
The margin recovery is the strongest part of the quarter. GAAP gross margin improved to 15.8% from 13.9% sequentially, while non-GAAP operating margin expanded to 8.6% from 5.5%. The company is therefore showing tangible operating leverage as volume returns, not merely reporting revenue growth.
The cash conversion is the important qualification. Ichor generated $20.9 million of GAAP net income but used $28.8 million in operating cash and $39.5 million of free cash flow. Inventory increased $39.5 million and accounts receivable increased $36.0 million during the quarter, indicating that the ramp is consuming working capital before it turns into cash.
The Q4 outlook keeps the recovery on track, but does not radically rewrite it. Management guided to $345 million to $365 million of revenue and $0.65 to $0.75 of non-GAAP diluted EPS, alongside continued sequential improvement. That supports the existing ramp narrative and extends visibility into 2027, but the filing does not remove the working-capital burden or semiconductor-cycle dependence. 〔0〕
Bottom line: Ichor delivered a real profit beat and stronger margins, confirming that the restructuring and volume ramp are working. The slight revenue miss and heavy cash use keep this as a modestly positive update rather than a full reset of the business story.
Q4 2026 results
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