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DIOD · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Diodes Incorporated (DIOD) stock moving?
Diodes reported Q3 2026 revenue of $532.6M, up 35.8% year over year and above the roughly $510M consensus, with GAAP gross margin at 36.1% (up 540 bps year over year) and non-GAAP EPS of $1.18 versus $1.05 expected. Q4 guidance of $533.5M-$566.5M in sales and $1.25-$1.45 in adjusted EPS sits above consensus of about $506M and $1.03. The shares fell to a $67.32 low on Nov 5 on about 1.40M shares, roughly 2.3 times the 14-day average, before the after-hours release; the cause of that drop is not in the supplied news. The stock then rebounded 13% on Nov 6 and 11% on Nov 9 to close at $86.73 on Nov 10. Truist and Needham kept Buy ratings but cut targets to $105 and $100, implying about 15-21% upside from the current price. Product launches on Nov 7 and Nov 10 add incremental flow but are not transformative. The quarter also included the completed ElevATE Semiconductor acquisition, a $375M 0% convertible notes issue due 2031, and about $35M of buybacks, which bring leverage and dilution to watch. Price is now close to late-October highs of $88.9-$89.8, with support around $79-$80 and the Nov 5 low of $67.32 as the lower reference.
News behind the analysis
- Diodes Incorporated Reports Q3 2026 Financial Results and Provides Q4 OutlookQ3 2026 revenue was $532.6M, above analyst expectations, and the company guided Q4 revenue to $533.5M-$566.5M.
- Diodes Sees Q4 Adj EPS $1.25-$1.45 vs $1.03 Est; Sees Sales $533.500M-$566.500M vs $505.967M EstQ4 adjusted EPS and sales guidance both sit above the consensus estimates cited by Benzinga.
- Diodes Q3 Adj. EPS $1.18 Beats $1.05 Estimate, Sales $532.587M Beat $509.998M EstimateNon-GAAP EPS of $1.18 and sales of $532.6M both beat consensus for the third quarter.
- Diodes Q3 2026 Earnings Call TranscriptTranscript of the Nov 5 call where management discussed the third-quarter results and outlook.
- Analyst Firms Adjust Price Targets for Diodes IncorporatedTruist and Needham kept Buy ratings after the earnings report but lowered their price targets.
- Needham Maintains Buy on Diodes, Lowers Price Target to $100Needham reiterated its Buy rating on Diodes and set a $100 price target.
- Diodes Releases Its API21550/API21552 Series From The RobustISO Family Of Isolation Products For High-Voltage Isolation And Reliable Signal TransmissionDiodes added dual-channel isolated gate drivers for high-voltage power-switch applications to its RobustISO family.
- Diodes Incorporated Releases API21550/API21552 Dual-Channel Isolated Gate DriversThe API21550 and API21552 gate drivers expand the RobustISO product family for high-voltage switching.
- Diodes Incorporated Releases Automotive-Compliant Hall Effect Current SensorsThe AHC1724Q and AHC1725Q Hall effect current sensors target electric vehicle charging infrastructure.
- Diodes Incorporated Launches New Automotive-Compliant High-Side Power SwitchesThree new automotive-compliant high-side switches for 12V automotive loads expand the IntelliFET portfolio.
About Diodes Inc
Diodes Incorporated is a semiconductor company based in Plano, Texas. It makes discrete, analog, power-management and connectivity chips used in automotive, industrial, computing, consumer electronics and communications products. What sets it apart is a large catalog of low-cost, high-volume parts made through a mix of its own factories and outside foundries. Its own fabs and packaging plants are mostly in Asia, and much of its business comes from there.
How it makes money
Diodes earns money by selling a very broad range of chips, including diodes, rectifiers, MOSFETs, power-management chips, load switches, USB and connectivity chips, and timing parts. It sells directly to device makers and through distributors. Revenue is spread across industrial, automotive, computing (including AI servers), consumer and communications customers. The company has been shifting toward automotive and industrial, which usually earn higher margins. Quarterly revenue was about $405 million in Q1 2026, roughly 20% higher than a year earlier.
What usually moves DIOD
- Ups and downs of the semiconductor cycle and distributor inventory levels
- Automotive and industrial demand
- Factory utilization and gross margins
- AI server and computing demand
- Asian (especially China) electronics demand and trade/tariff policy