Data I/O (NASDAQ:DAIO) Issues Earnings Results, Misses Expectations By $0.18 EPS

Data I/O (NASDAQ:DAIO) released its quarterly earnings results on Thursday. The electronics maker reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.18), Zacks reports. Data I/O had a negative return on equity of 31.01% and a negative net margin of 23.19%.

Here are the key takeaways from Data I/O’s conference call:

• Data I/O reported Q1 2026 net sales of $3.3 million, down from $6.2 million a year ago, as the company experienced a slower-than-expected start to the year and softer revenue coming out of Q4.
• Management said bookings improved sequentially to $4.2 million in Q1, with strong late-quarter momentum, better traction in Europe, and several new customer logos added.
• The company raised Q2 revenue guidance to $5.0 million-$5.4 million, implying at least 20% sequential growth, and said the core business is entering the quarter with stronger demand and improved visibility.
• Data I/O outlined a major strategic shift toward Programming as a Service and recurring revenue, with management saying it is in active discussions with multiple customers and expects initial contracts to begin closing later this year.
• The company announced a $9 million direct investment and a planned $23 million transformational acquisition, which management said will nearly double annual revenue, expand manufacturing capacity, and be accretive to earnings and cash flow.

Data I/O Trading Up 5.1%

Shares of DAIO stock traded up $0.14 during trading hours on Thursday, hitting $2.91. 230,582 shares of the company were exchanged, compared to its average volume of 32,370. Data I/O has a 1 year low of $2.16 and a 1 year high of $3.57. The firm has a fifty day moving average of $2.58 and a 200 day moving average of $2.85.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on DAIO shares. LADENBURG THALM/SH SH raised shares of Data I/O to a “strong-buy” rating in a research note on Wednesday, May 6th. Zacks Research raised shares of Data I/O from a “strong sell” rating to a “hold” rating in a research note on Friday, May 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Data I/O in a research note on Monday, April 20th. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Data I/O presently has a consensus rating of “Moderate Buy” and a consensus price target of $5.11.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Kovack Advisors Inc. lifted its holdings in shares of Data I/O by 2.2% during the 4th quarter. Kovack Advisors Inc. now owns 268,906 shares of the electronics maker’s stock worth $852,000 after acquiring an additional 5,675 shares during the period. Steward Partners Investment Advisory LLC lifted its holdings in shares of Data I/O by 24.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 43,472 shares of the electronics maker’s stock worth $138,000 after acquiring an additional 8,555 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of Data I/O by 45.4% during the 2nd quarter. NewEdge Advisors LLC now owns 22,402 shares of the electronics maker’s stock worth $69,000 after acquiring an additional 7,000 shares during the period. Finally, DRW Securities LLC purchased a new position in shares of Data I/O during the 4th quarter worth about $37,000. 36.95% of the stock is currently owned by hedge funds and other institutional investors.

Data I/O Company Profile

Data I/O Corporation is a provider of device programming solutions for semiconductor and microcontroller manufacturers, test houses, contract manufacturers and electronics design engineers. The company’s product portfolio includes universal and site-specific programmers, automated programming systems and software tools that enable high-volume production, development and field programming of non-volatile memories and microcontrollers. Data I/O’s solutions are designed to support a wide range of programmable devices, including Flash, EPROM, EEPROM, PLDs, FPGAs and automotive-grade microcontrollers.

The company’s flagship technologies include its high-speed FlashCORE III programming engines and the SB-OS-A automated handling system, which together streamline production workflows by providing scalable, multi-site programming capabilities.