GET DAILY SIGNALSData I/O Corporation (DAIO) Prepares for Third Quarter 2026 Earnings Report
Key Takeaways
- Data I/O Corporation (DAIO) is expected to report its third quarter 2026 results in the coming weeks, covering the period ended September 30, 2026.
- Wall Street consensus points to revenue of roughly $6.3 million and a near-breakeven loss per share of approximately $0.01.
- Second quarter 2026 delivered a 59% sequential revenue jump to $5.2 million and near-breakeven adjusted EBITDA.
- The company recently completed its roughly $23 million acquisition of V-TEK and A&J Programming, a deal management says could roughly double its revenue run rate.
- Gross margin reached 57% in the second quarter — its highest since early 2023 — a trend investors will watch closely.
Why This Earnings Report Matters
Data I/O Corporation (DAIO), a provider of data programming and security provisioning systems for the automotive, Internet-of-Things (IoT), medical, and industrial electronics markets, is navigating a multi-year transformation. After a difficult 2025 marked by declining bookings and softer automotive demand, the company has pivoted toward recurring revenue, services, and artificial intelligence-driven efficiency. This report matters because it will show whether the sharp sequential rebound seen in the second quarter is translating into durable, year-over-year improvement — and whether management's acquisition strategy is beginning to reshape the revenue base just as investors look toward a larger addressable market.
What Analysts Expect for the Quarter
Analysts currently expect Data I/O Corporation (DAIO) to report third quarter 2026 revenue of approximately $6.3 million, with a consensus loss per share near $0.01. That revenue figure would mark meaningful growth from the $5.2 million reported in the second quarter of 2026 and from the $5.39 million delivered in the third quarter of 2025.
The bar has been set partly by the company's own trajectory. Second quarter 2026 net sales rose 59% sequentially, gross margin climbed to 57%, and adjusted EBITDA swung to a small positive $39,000 from a negative $1.75 million in the first quarter. For 2026, management has guided to organic revenue growth over 2025, with a focus on accelerating recurring and services revenue, including its on-site Programming-as-a-Service offering. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Investors will also scrutinize bookings and backlog for signs of sustained demand. Bookings improved to $4.9 million in the second quarter, up from $4.2 million in the first, but backlog declined to $2.1 million — a trend that will draw attention for what it signals about near-term order visibility.
Market Sentiment Heading Into the Report
Sentiment heading into the third quarter report is cautiously optimistic but mixed. Data I/O Corporation (DAIO) shares have been volatile in 2026 as investors weigh an improving operational picture against persistent bottom-line losses and cash burn. The second quarter's beat on revenue was tempered by a wider net loss, driven largely by a non-cash, non-recurring interest expense tied to convertible debenture accounting — a detail that may have muted the initial positive reaction.
The recently completed V-TEK and A&J Programming acquisition adds a new layer of complexity. While it is expected to meaningfully expand revenue and diversify the customer base beyond automotive, integration costs and purchase accounting could pressure near-term reported results. Key risk factors heading into the print include supply chain tightness — particularly potential memory shortages driven by AI demand — and the possibility that backlog softness translates into lighter forward guidance.
What to Watch After the Earnings Release
Following this earnings event, investors will want to track several forward-looking signals. First, watch whether management reaffirms or updates its 2026 framework for organic revenue growth and its progress toward the $22 million annual operating cost run rate target it cited in the second quarter. Continued gross margin expansion would reinforce the case that the company's pricing and product-mix strategy is working.
Second, the integration of V-TEK and A&J Programming will be central. Management has said the acquisition is expected to roughly double revenue and open new security-related and services revenue streams. The timing and pace of that consolidation — and whether it dilutes near-term profitability — will be a focal point for the market.
Finally, keep an eye on bookings, backlog, and deferred revenue as leading indicators of demand. Recurring revenue from consumable adapters, software, and services now represents a majority of sales, and growth in that base would support a more predictable model. Broader industry dynamics, including automotive electronics demand, tariff impacts, and memory supply availability, will also shape the company's ability to sustain momentum through year-end and into 2027.
AI Tools in My Research Process
When preparing for earnings reports like this one, I find Tickeron’s AI Screener helpful for quickly identifying comparable companies and spotting broader market patterns that could influence names such as Data I/O Corporation (DAIO). It allows filtering by industry, performance metrics, and technical signals in a way that saves time compared to manual reviews.
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.
DAIO's RSI Indicator descends into oversold zone
The RSI Oscillator for DAIO moved into overbought territory on October 22, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where DAIO advanced for three days, in 146 of 213 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
DAIO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DAIO as a result. In 80 of 103 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for DAIO turned negative on October 13, 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 49 similar instances when the indicator turned negative. In 36 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 73%.
DAIO 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 DAIO crossed bearishly below the 50-day moving average on October 13, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 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 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAIO 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 74%.
The Aroon Indicator for DAIO entered a downward trend on September 21, 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.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 18 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly 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 (2.184) is normal, around the industry mean (4.498). P/E Ratio (-2.621) is within average values for comparable stocks, (6.977). Projected Growth (PEG Ratio) (3.420) is also within normal values, averaging (1.658). Dividend Yield (0.000) settles around the average of (0.018) among similar stocks. P/S Ratio (1.487) is also within normal values, averaging (4.796).
The Tickeron Price Growth Rating for this company is 73 (best 1 - 100 worst), indicating slightly worse than average price growth. DAIO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (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 Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAIO’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 72, placing this stock worse than average.
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General Information
a manufacturer of advanced programming and intellectual property management solutions
Industry ElectronicComponents