Diodes (NASDAQ:DIOD) Announces Earnings Results

Diodes (NASDAQ:DIOD) posted its quarterly earnings results on Tuesday. The semiconductor company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.08, Zacks reports. Diodes had a net margin of 4.46% and a return on equity of 2.96%. The company had revenue of $391.58 million for the quarter, compared to analyst estimates of $380.03 million. During the same period last year, the business posted $0.27 EPS. The business’s quarterly revenue was up 15.4% on a year-over-year basis.

Here are the key takeaways from Diodes’ conference call:

• Fourth-quarter revenue of $391.6M rose 15% year‑over‑year (full‑year up 13%), driven by strong computing (AI server) demand and double‑digit growth in automotive and industrial, supported by broad design wins and content expansion.
• Management introduced a three‑year interim target to reach $2.0B revenue with ~ $700M gross profit (35%+ gross margin) and >$4 non‑GAAP EPS, implying ~10.5% revenue CAGR and significant operating leverage if execution and utilization improve.
• Q1 2026 guidance calls for revenue of ~$395M ±3% (≈19% YoY) and a gross margin around 31.5%, indicating management expects above‑seasonal demand and a fifth consecutive quarter of double‑digit YoY growth.
• GAAP gross margin slipped to 31.1% in Q4 (from 32.7% a year ago) and management says future margin expansion depends heavily on reducing underutilization/underload costs and improved manufacturing efficiency, which are execution risks.
• Cash generation strengthened materially — 2025 free cash flow of $137.2M, cash and short‑term investments of ~$382M, and ongoing buybacks (partial use of a $100M program) while capex remained within the 5%–9% target range.

Diodes Stock Performance

Diodes stock opened at $78.00 on Thursday. The firm has a market capitalization of $3.62 billion, a P/E ratio of 54.93 and a beta of 1.66. The stock has a fifty day moving average price of $54.96 and a two-hundred day moving average price of $52.85. Diodes has a 52-week low of $32.93 and a 52-week high of $81.71. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.32 and a quick ratio of 2.09.

Insider Activity

In other news, SVP Emily Yang sold 950 shares of the firm’s stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $60.85, for a total transaction of $57,807.50. Following the completion of the sale, the senior vice president owned 74,032 shares of the company’s stock, valued at approximately $4,504,847.20. This trade represents a 1.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Gary Yu sold 2,900 shares of Diodes stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $60.85, for a total transaction of $176,465.00. Following the completion of the transaction, the chief executive officer owned 111,671 shares of the company’s stock, valued at $6,795,180.35. This trade represents a 2.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 5,205 shares of company stock worth $315,853 in the last quarter. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Diodes

Institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC grew its holdings in shares of Diodes by 77.4% during the second quarter. EverSource Wealth Advisors LLC now owns 470 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 205 shares during the last quarter. Geneos Wealth Management Inc. bought a new stake in Diodes during the 2nd quarter worth about $30,000. Quarry LP acquired a new stake in Diodes in the 3rd quarter valued at about $39,000. Global Retirement Partners LLC raised its stake in shares of Diodes by 563.1% in the fourth quarter. Global Retirement Partners LLC now owns 809 shares of the semiconductor company’s stock worth $40,000 after acquiring an additional 687 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its position in shares of Diodes by 92,000.0% during the third quarter. CIBC Private Wealth Group LLC now owns 1,842 shares of the semiconductor company’s stock worth $98,000 after purchasing an additional 1,840 shares in the last quarter. Institutional investors own 99.23% of the company’s stock.

Key Stories Impacting Diodes

Here are the key news stories impacting Diodes this week:

• Positive Sentiment: Q4 results: revenue grew ~15% YoY to ~$391.6M and beat estimates; the company reported EPS above some consensus figures and improved margins and net income year-over-year. Diodes Incorporated Reports Fourth Quarter Fiscal 2025 Financial Results
• Positive Sentiment: Outlook: management issued Q1 revenue guidance above Street consensus and introduced three‑year financial targets, signaling confidence in demand, which drove investor optimism. Diodes Shares Climb as AI, Automotive Growth Boosts 4Q, Outlook
• Positive Sentiment: End markets: management highlighted AI and automotive strength as key demand drivers, supporting higher revenue targets and investor enthusiasm. Diodes surges more than 25% on Q4 results, outlook; introduces 3-year financial targets
• Positive Sentiment: Analyst reaction: Benchmark raised its price target to $80 (buy) and Baird maintained a buy with an $80 target; Truist raised its target as well — analyst support helped lift sentiment. DIOD – Price Target Raised at Benchmark
• Neutral Sentiment: Earnings call materials and transcripts are available for detail — they provide color on product mix, seasonality and gross‑margin drivers but included some cautionary commentary on near-term pressures. Diodes Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Market write-ups and analysis (AAII, Yahoo Finance) explain the price action and valuation context — useful if you want deeper background on investor reaction. Why Diodes Incorporated’s (DIOD) Stock Is Up 26.95%
• Negative Sentiment: Reported EPS metrics have mixed presentations: some outlets note GAAP diluted EPS below certain estimates while others report an adjusted beat — this accounting/metric mix created some short-term confusion. Revenue Beats but EPS Miss (Quiver)
• Negative Sentiment: Insider selling activity and mixed commentary on near-term pressures were noted in coverage — items investors may watch as they reassess momentum. Insider Activity & Financial Details

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Zacks Research raised Diodes from a “strong sell” rating to a “hold” rating in a research report on Monday, January 5th. Truist Financial lifted their price objective on Diodes from $54.00 to $67.00 and gave the stock a “hold” rating in a report on Wednesday. Wall Street Zen lowered Diodes from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Benchmark lifted their price target on shares of Diodes from $62.00 to $80.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Weiss Ratings raised shares of Diodes from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Diodes has an average rating of “Hold” and an average price target of $65.67.

Diodes Company Profile

Diodes Incorporated (NASDAQ: DIOD) is a global manufacturer and supplier of high‐performance discrete, logic, analog and mixed‐signal semiconductor products. Headquartered in Plano, Texas, the company designs and develops a broad range of discrete components, standard logic functions, power management circuits, interface products and array products. Its portfolio includes rectifiers, MOSFETs, general‐purpose diodes, voltage regulators, comparators, buffers and other building blocks for electronic systems.

Diodes Incorporated serves a variety of end markets such as automotive, computing, communications, consumer electronics, industrial and lighting.