Vishay Q3 2026 Revenue Rises 24%, Q4 Sales Seen Near $990M

Vishay Intertechnology reported a sharp improvement in third-quarter 2026 profitability as revenue increased across its end markets, sales channels and regions. Net revenue rose 24% year over year to $978.9 million, while gross margin expanded to 25.5% from 19.5%. The electronic-components maker expects fourth-quarter revenue of about $990 million, plus or minus $15 million, with a gross margin of 26.0%, plus or minus 50 basis points.

Third-quarter operating income reached $92.2 million, up from $19.1 million a year earlier, lifting operating margin to 9.4% from 2.4%. Net earnings were $59.0 million, or $0.37 per diluted share, compared with a net loss of $7.9 million, or $0.06 per share, in the prior-year period. Adjusted earnings in the third quarter of 2025 were $5.8 million, or $0.04 per diluted share, after excluding the effect of changes in tax laws and regulations.

Sequentially, third-quarter revenue increased from adjusted revenue of $918.6 million in the second quarter. Second-quarter GAAP revenue was $888.6 million and included a $30 million reduction related to tariff refunds passed through to customers. Vishay reported no revenue adjustments in the third quarter.

Adjusted EBITDA rose to $145.9 million from $76.0 million a year earlier, and adjusted EBITDA margin widened to 14.9% from 9.6%. Selling, general and administrative expenses totaled $157.2 million, while the effective tax rate was 32.4%.

Industrial and AI-related demand support growth

Industrial remained Vishay’s largest end market, accounting for 40% of third-quarter revenue. Sales to the market increased 12% sequentially and 43% year over year. The company cited new power-management, smart-grid and industrial-automation projects entering mass production in the Americas, alongside demand in Asia for data-center uninterruptible power supplies, artificial-intelligence applications and high-voltage direct-current systems.

Automotive revenue, representing 31% of the total, increased 4% from the second quarter and 7% from a year earlier as customers began ramping new model-year programs and exports from China grew. Aerospace and defense sales advanced 4% sequentially and 23% year over year, supported by higher consumption among U.S. and European defense contractors. The segment’s book-to-bill ratio reached 1.64 at quarter-end.

The group of other markets—including power supplies, telecom, consumer products and computing—posted flat sequential revenue and 23% year-over-year growth. Vishay attributed the increase to AI server and server-power demand, market-share gains and higher telecom volume from customers supporting optical-communications switches. Healthcare revenue rose 1% sequentially and 13% year over year, with gains in Europe and Asia offsetting seasonal conditions in the Americas.

Distribution revenue increased 9% quarter over quarter and 30% year over year, driven by demand from industrial, aerospace and defense, and AI customers. Distributor inventories remained at 18 weeks, while point-of-sale revenue rose 5% sequentially and 26% from the prior year. The company said bookings also benefited from longer lead times and component price increases.

OEM revenue grew 3% sequentially and 14% year over year, while EMS revenue increased 6% and 27%, respectively. By region, revenue rose 23% year over year in Europe, 20% in Asia and 31% in the Americas.

All product categories post higher revenue

Each of Vishay’s six product groups generated year-over-year revenue growth and higher gross margins. Resistors were the largest category, with revenue of $231.2 million, a gross margin of 26.2% and a book-to-bill ratio of 1.45. Diode revenue reached $197.6 million with a 27.2% gross margin, while MOSFET revenue was $195.3 million with a 14.6% margin.

Capacitor revenue totaled $165.6 million and carried a 27.5% gross margin. Inductor revenue was $114.5 million with a 33.3% margin, the highest among the product categories, while optoelectronics revenue reached $74.8 million with a 30.4% margin.

Companywide book-to-bill was 1.29 at the end of the quarter, comprising 1.28 for semiconductors and 1.31 for passive components. Backlog represented 6.6 months of sales.

Cash flow improves as capital spending moderates

Cash provided by operating activities rose to $145.8 million from $27.6 million a year earlier. Capital expenditures declined to $47.5 million from $52.3 million, resulting in free cash flow of $98.5 million, compared with negative free cash flow of $24.3 million in the third quarter of 2025.

The cash-conversion cycle shortened to 106 days from 130 days a year earlier. Days sales outstanding fell to 35 from 53, while days inventory outstanding declined to 101 from 108.

Vishay paid $15.3 million in dividends during the quarter, equivalent to $0.10 per share. The company reported no third-quarter share repurchases.

For the fourth quarter, Vishay projects SG&A expenses of approximately $157 million, plus or minus $3 million, interest expense of about $6 million and a normalized effective tax rate of 30% to 35%. Full-year 2026 capital spending is expected to range from $350 million to $400 million.

Management’s strategic priorities include expanding internal and external capacity, optimizing the manufacturing footprint, increasing technical staffing, improving channel management, developing new products and pursuing acquisitions. The outlook remains subject to the risks and assumptions described in Vishay’s regulatory filings. The presentation also indicated that some recent bookings reflected customers securing delivery against forecasts, longer lead times, price increases and concerns about tightening component supply, factors that may affect the timing of future orders and revenue.