Diodes Incorporated (DIOD)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$91.79+2.05%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
QuarterlyIQ Insights · DIOD
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks DIOD against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 1 guided quarters · 16.7% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Drive revenue growth by expanding content and market share in automotive, industrial, and AI-server applications with new product introductions and design wins.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $391.6M in 2025-Q4 to $445.5M in 2026-Q2 (+14%), with automotive revenue reaching a record 21% of product revenue in 2026-Q2. Management consistently emphasizes growth in automotive, industrial, and AI-server markets, and the trajectory is delivering with accelerating revenue and market share gains.
“Revenue again increasing more than 20% year-over-year, driven by growth across all regions and key focus areas of automotive, industrial, and AI server related applications.”
“First quarter revenue grew 22% year-over-year and an above-seasonal 3.5% sequentially, driven by automotive, industrial and AI-server related applications.”
“Fourth quarter revenue growing 15% year-over-year and 13% for the full year, driven by design win initiatives and content expansion in automotive, industrial and computing for AI server applications.”
Enhance gross margins by focusing on higher-margin product mix, manufacturing efficiency, and cost initiatives.
Stated as a priority in 3 of last 3 quarters. Gross margin improved from 31.1% in 2025-Q4 to 33.1% in 2026-Q2, reflecting benefits from product mix and operational initiatives. Management's focus on margin expansion through efficiency and mix is showing delivering results with steady margin improvement.
“Cost and operating initiatives producing measurable benefit to gross margin with a 160 basis point year-over-year increase.”
Drive operating income and non-GAAP EPS growth through revenue growth, margin expansion, and cost control.
Stated as a priority in 3 of last 3 quarters. Non-GAAP EPS grew from $0.32 in 2025-Q1 to $0.70 in 2026-Q2, and operating income increased from $9.4M in 2025-Q2 to $33.3M in 2026-Q2. Management consistently emphasizes operating leverage and EPS growth, and the financials show delivering with strong earnings expansion.
Pursue acquisitions to broaden product portfolio and enter high-growth markets such as automated test equipment (ATE).
Stated as a priority in 2 disclosures including 2026-Q2 earnings call and 2026-08-27 press release. The acquisition of ElevATE Semiconductor is expected to add approximately $50 million revenue in the first 12 months and expand Diodes' portfolio in the high-growth ATE market. Management is delivering on this strategic expansion with the completed acquisition.
“Looking for inorganic opportunity to expand technology portfolio such as recent proposed acquisition of ElevATE Semiconductor.”
Manage capital allocation prudently with share repurchase programs and debt management to enhance shareholder value.
Stated as a priority in 2 recent press releases in August 2026. The company executed $10 million in stock buybacks in 2026-Q2 and amended credit agreements to support capital allocation. Management is actively managing capital allocation with share repurchases and debt facilities, showing delivering on stated priorities.
Over the trailing year it converted 2.57x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates (low R² over the window).
19 material management or governance events in the past 24 months, led by legal/regulatory items. Historically, Information Technology names rated volatile grew net income 60% of the time over the next year (vs 58% for the rest of the cohort, n=2769).
Not investment advice. As of 2026-09-04.
“Gross margin improved 70 basis points sequentially due mainly to higher revenue contribution from automotive and industrial markets and improving utilization.”
“Initial improvements in gross margin as product mix benefitted from growth in automotive market.”
“Non-GAAP earnings increased by more than 100% again this quarter.”
“Delivered over 100% year-over-year increase in quarterly earnings, demonstrating operating leverage.”
“Operating leverage in financial model supports delivering over $4 in non-GAAP EPS over three years.”