GET DAILY SIGNALSVishay Intertechnology (VSH) Delivers Record Q3 Revenue on +24% Growth and Margin Expansion
Key Takeaways
- Vishay Intertechnology reported record third-quarter fiscal 2026 revenue of $978.9 million, up 24% year over year and above the top end of its guidance range.
- Diluted earnings per share (EPS) reached $0.37, exceeding the $0.32 consensus estimate and swinging sharply from a $0.06 loss a year earlier.
- Gross margin expanded 600 basis points to 25.5%, driving operating margin up to 9.4% from just 2.4% in the prior-year quarter.
- Bookings remained robust, with a book-to-bill ratio of 1.29 and a quarter-end backlog of $2.2 billion, or roughly 6.6 months of coverage.
- Management guided fourth-quarter revenue to approximately $990 million, plus or minus $15 million, with gross margin of about 26.0%.
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Earnings Context and Why It Matters
Vishay Intertechnology operates in cyclical discrete-semiconductor and passive-component markets, where volume leverage across its fixed manufacturing base is the primary driver of profitability. The third quarter of fiscal 2026, ended October 3, 2026, marks a pivotal moment in the company's "Vishay 3.0" transformation. After a challenging 2025 that produced a full-year net loss, Vishay has now strung together multiple quarters of revenue growth and margin recovery. A 24% top-line increase translating into a 600-basis-point gross margin gain underscores the operating leverage investors have been waiting to see. With demand accelerating across industrial, automotive, aerospace and defense, and artificial intelligence (AI) server applications, this report offers a key read on whether the upcycle has staying power. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Vishay Intertechnology posted net revenue of $978.9 million for its fiscal third quarter of 2026, up 24% from $790.6 million in the year-ago period and above the company's guided range of $945 million to $975 million. The figure represented the highest quarterly revenue in Vishay's history. Sequentially, revenue rose 10.2% on a GAAP (Generally Accepted Accounting Principles) basis from $888.6 million in the second quarter.
Gross profit climbed to $249.4 million, lifting gross margin to 25.5% from 19.5% a year earlier. Operating income reached $92.2 million, producing an operating margin of 9.4%, compared with 2.4% in the prior-year quarter. Net earnings were $58.97 million, or $0.37 per diluted share, a sharp reversal from a net loss of $7.88 million, or $0.06 per share, a year ago. Diluted EPS of $0.37 exceeded the $0.32 consensus estimate, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $145.9 million.
Book-to-bill was 1.29 overall, indicating orders outpaced shipments, and backlog grew 15% to $2.2 billion, or 6.6 months. For the fourth quarter, management guided revenue to approximately $990 million, plus or minus $15 million, with gross margin of 26.0% plus or minus 50 basis points. From what I see, the sequential improvement and backlog coverage provide a solid foundation for the near term.
Market Reaction and Investor Sentiment
Investors responded positively to the results. Shares of Vishay Intertechnology rose 6.66% on November 3 and traded roughly 6% higher in pre-market on November 4, with some reports citing an intraday gain of about 7.4% to near $29.26 following the release. The enthusiasm centered on the margin inflection and record revenue, which arrived ahead of management's own timetable and demonstrated meaningful operating leverage.
Sentiment was nonetheless measured in places. The heavier share count following an $830 million follow-on offering diluted per-share results, and the effective tax rate remained elevated above 32%. While the top line was a company record, it landed roughly in line with, or slightly below, some third-party revenue consensus figures. Overall, the market's focus remained on the accelerating margin trajectory and strong order book rather than on these secondary factors.
Forward Outlook and Key Factors to Monitor
Vishay Intertechnology enters its fourth quarter with clear momentum. Guidance of approximately $990 million in revenue and a 26.0% gross margin points to continued sequential improvement, and management indicated that average selling prices (ASPs) are expected to rise further. Bookings have strengthened as customers place longer-term orders, in some cases up to 18 months out, to secure supply through 2027.
Several factors deserve close attention. First, investors should watch whether the book-to-bill ratio, now at 1.29, holds above 1.0; it has eased from roughly 1.34 earlier in the year, and sustained order strength is essential to support the growing backlog. Second, the company's 12-inch wafer fabrication project at Itzehoe faces a timing shift, with engineering wafers now expected in early 2027 and non-automotive production pushed to the second half of 2027. Equipment lead times also prompted a cut to fiscal 2026 capital expenditures, now projected at $350 million to $400 million.
Margin durability remains the central question. Gross margin has risen sharply from 19.5% a year ago to 25.5%, and continued gains will depend on factory utilization, pricing, and product mix. Finally, Vishay's expanding AI-related business, which management has quantified at roughly $200 million for 2026 versus about $100 million in 2025, could be a meaningful catalyst if demand for server power components keeps growing. I'm watching this closely as a potential driver for further upside.
Using Tickeron’s AI Tools for Deeper Analysis
In my view, incorporating data-driven tools helps put these results in broader context. Tickeron’s AI Screener allows investors to filter stocks by technical patterns, fundamentals, and industry trends, making it easier to identify comparable names in the semiconductor space. I ran a quick scan after reviewing Vishay’s numbers to see how its momentum stacks up against peers, and the insights reinforced the operating-leverage story without adding unnecessary complexity. This kind of approach supports a more disciplined, evidence-based process when evaluating cyclical names like this one.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
VSH in downward trend: price expected to drop as it breaks its higher Bollinger Band on October 01, 2026
VSH broke above its upper Bollinger Band on October 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 47 similar instances where the stock broke above the upper band. In 39 of the 47 cases the stock fell afterwards. This puts the odds of success at 83%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on VSH as a result. In 62 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 69%.
The Moving Average Convergence Divergence Histogram (MACD) for VSH turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 36 similar instances when the indicator turned negative. In 20 of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
VSH moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for VSH crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
The 50-day moving average for VSH moved below the 200-day moving average on October 26, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VSH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
The Aroon Indicator for VSH entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where VSH's RSI Indicator exited the oversold zone, 24 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +12.02% 3-day Advance, the price is estimated to grow further. Considering data from situations where VSH advanced for three days, in 223 of 329 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. VSH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 83 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VSH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock worse than average.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.433) is normal, around the industry mean (4.187). P/E Ratio (129.619) is within average values for comparable stocks, (4.640). VSH's Projected Growth (PEG Ratio) (1.842) is slightly higher than the industry average of (0.930). Dividend Yield (0.015) settles around the average of (0.020) among similar stocks. P/S Ratio (1.313) is also within normal values, averaging (4.422).
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of electronic components and semiconductors
Industry ElectronicComponents
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