Revenue: As of FY2026 Q1, the actual value is USD 405.5 M, beating the estimate of USD 395 M.EPS: As of FY2026 Q1, the actual value is USD 0.32, beating the estimate of USD 0.24.EBIT: As of FY2026 Q1, the actual value is USD 15.1 M.<h4>Q1 2026 Financial Highlights</h4><ul><li>Gross Profit &amp; MarginDiodes Incorporated’s gross profit for Q1 2026 was $128.8 million, representing a gross margin of 31.8% of revenue. This compares to $104.7 million or 31.5% of revenue in Q1 2025 and $121.9 million or 31.1% of revenue in Q4 2025. Gross margin improved 70 basis points sequentially .</li><li>Operating ExpensesGAAP operating expenses were $109.0 million or 26.9% of revenue in Q1 2026. Non-GAAP operating expenses were $103.9 million or 25.6% of revenue, excluding $3.9 million in amortization of acquisition-related intangible asset costs and $1.1 million in board and officer retirement expense .</li><li>Total Other IncomeTotal other income amounted to $2.7 million for the quarter, including $5.4 million in interest income, $2.5 million in unrealized gain on investments, and $0.1 million in other income, offset by -$3.4 million in foreign currency losses, -$1.2 million of impairment loss of equity investment, and -$0.7 million in interest expense .</li><li>Income Before TaxesIncome before taxes, equity, net earnings of equity investments, and non-controlling interest was $22.4 million in Q1 2026, compared to a loss of -$2.8 million in Q1 2025 and $16.8 million in Q4 2025 .</li><li>Effective Income Tax RateThe effective income tax rate for Q1 2026 was approximately 19.9% .</li><li>GAAP Net IncomeGAAP net income was $15.0 million in Q1 2026, compared to a net loss of -$4.4 million in Q1 2025 and net income of $10.2 million in Q4 2025. Quarterly earnings showed an over 100% year-over-year increase .</li><li>Non-GAAP Adjusted Net IncomeNon-GAAP adjusted net income was $19.8 million in Q1 2026, compared to $8.8 million in Q1 2025 and $15.7 million in Q4 2025 .</li><li>EBITDAEBITDA for Q1 2026 was $49.4 million or 12.2% of revenue, compared to $26.2 million or 7.9% of revenue in Q1 2025 and $41.9 million or 10.7% of revenue in Q4 2025 .</li></ul><h4>Cash Flow</h4><ul><li>Operating Cash FlowCash flow provided by operations was $64.3 million for Q1 2026, a $26.2 million increase from $38.1 million in Q4 2025 .</li><li>Free Cash FlowFree cash flow was $32.4 million, a $20.0 million increase over Q4 2025, and included $31.9 million of capital expenditures .</li><li>Net Cash FlowNet cash flow was a positive $26.9 million .</li></ul><h4>Balance Sheet &amp; Inventory</h4><ul><li>Cash and InvestmentsCash, cash equivalents, restricted cash, plus short-term investments totaled approximately $409 million at the end of Q1 2026 .</li><li>Working CapitalWorking capital was approximately $891 million .</li><li>Total DebtTotal debt, including long-term and short-term, was approximately $55 million .</li><li>InventoryTotal inventory days were approximately 157 days in Q1 2026, down from 161 days in Q4 2025 and 187 days in Q1 2025. Finished goods inventory days were 55 days, compared to 59 days last quarter. Total inventory dollars increased $21.2 million from Q4 2025 to $492.8 million .</li><li>Capital ExpendituresCapital expenditures on a cash basis were $31.9 million for Q1 2026, or 7.9% of revenue, falling within the targeted annualized range of 5% to 9% of revenue .</li></ul><h4>Revenue by Segment/End Market</h4><ul><li>Regional SalesAsia represented 77% of revenue, Europe 14%, and North America 9%. Europe led the growth .</li><li>End Markets (Product Revenue)Industrial was 24% of product revenue, automotive 20%, computing 26%, consumer 17%, and communications 13%. Automotive and industrial revenue combined was 44% of product revenue, a 2-percentage-point increase compared to the prior quarter .<ul><li>Automotive Market: Revenue grew 3.8% sequentially and over 32% year-over-year .</li><li>Industrial Market: Revenue grew to 24% of product revenue from 22% last quarter, representing a 13.2% quarter-over-quarter growth and over 31% year-over-year .</li><li>Computing Market: Revenue decreased 3.7% to 26% of product revenue sequentially but grew over 21% year-over-year .</li><li>Consumer Market: Revenue increased 3.8% sequentially and over 26% year-over-year .</li><li>Communication Market: Revenue increased 3.8% sequentially and over 17% year-over-year .</li></ul></li></ul><h4>Outlook / Guidance</h4>For the second quarter, Diodes Incorporated anticipates revenue of approximately $435 million, plus or minus 3%, which would be an 18.8% year-over-year increase and 7.3% sequential increase at the midpoint . The GAAP gross margin is projected to be 32.8% plus or minus 1%, with non-GAAP adjusted EPS expected at $0.60, plus or minus $0.10 . Diodes Incorporated also maintains long-term financial targets of $2 billion in annual revenue, $700 million in gross profit, and over $4 in non-GAAP EPS .

Diodes | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 405.5 M