Vishay Intertechnology reported second-quarter 2026 GAAP revenue of $888.6 million and adjusted revenue of $918.6 million, with adjusted revenue increasing 9.5% sequentially and exceeding the upper end of the company’s guidance. The difference between reported and adjusted revenue reflects $30.0 million of tariff refunds passed through to customers, which had no impact on gross profit.

The quarter showed a notable improvement in profitability. Gross margin reached 23.3%, up from 21.0% in Q1 2026 and 19.5% in Q2 2025. Operating margin improved to 6.0%, compared with 2.6% in the previous quarter and 2.9% a year earlier. Net earnings reached $28.1 million, or $0.19 per diluted share, compared with $7.2 million and $0.05 per share in Q1. Adjusted EBITDA increased to $104.8 million, representing an adjusted EBITDA margin of 11.4%, up from 9.3% sequentially and 8.3% a year earlier.

Demand indicators were particularly strong. Vishay reported an overall book-to-bill ratio of 1.32, including 1.23 for semiconductors and 1.40 for passive components, while backlog reached 6.1 months. Management said demand strengthened across all end markets, sales channels and geographic regions, indicating that the improvement is relatively broad rather than concentrated in a single application or customer group.

CEO Joel Smejkal said Vishay is focused on supplying its growing customer base and taking advantage of the current industry upcycle while positioning the company for multi-year demand. For the power semiconductor market, the semiconductor book-to-bill above 1 is an encouraging indicator that order intake is running ahead of shipments as market conditions recover.

For Q3 2026, Vishay expects revenue of $945 million to $975 million. At the midpoint of $960 million, this would represent approximately 4.5% sequential growth from Q2 adjusted revenue. Gross margin is expected to reach approximately 24.0%, plus or minus 50 basis points, suggesting further profitability improvement as higher volumes support manufacturing utilization.

The company’s first-half results also show a substantial recovery from 2025. H1 revenue reached $1.73 billion versus $1.48 billion a year earlier, while operating income increased to $75.7 million from $22.9 million. Adjusted EBITDA rose to $182.8 million from $118.0 million, with the adjusted EBITDA margin expanding to 10.4% from 8.0%.

Vishay is simultaneously maintaining significant investment in manufacturing capacity. Capital expenditures reached $205.9 million during the first six months of 2026, compared with $126.2 million a year earlier. Free cash flow remained negative at $36.6 million for H1, although this represented a substantial improvement from negative $118.4 million in H1 2025. Cash and cash equivalents increased to approximately $1.30 billion following the company’s follow-on public offering.

The combination of a 1.23 semiconductor book-to-bill ratio, six months of backlog, improving margins and another sequential revenue increase expected in Q3 provides evidence that Vishay is moving further into an electronics demand recovery. For the discrete semiconductor market specifically, the figures suggest improving utilization and order momentum, while the company’s continued capacity investments position it to capture stronger demand across automotive, industrial, computing and other power-electronics applications.

Original – Vishay Intertechnology