Vishay Intertechnology’s second quarter was met with a significant negative market reaction, as revenue missed Wall Street’s expectations despite double-digit year-over-year growth. However, management did not attribute the shortfall to ongoing supply chain constraints or rising input costs. Instead, management emphasized robust demand, successful execution, and operational agility across industrial, automotive, and AI-related end markets. CEO Joel Smejkal highlighted that the company’s “hybrid model of semis and passives” is positioning Vishay for share gains, particularly as customers seek to secure supply amid lengthening lead times and escalating concerns over component availability.
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Vishay Intertechnology (VSH) Q2 CY2026 Highlights:
- Revenue: $888.6 million vs analyst estimates of $904.9 million (16.6% year-on-year growth, 1.8% miss)
- Adjusted EPS: $0.19 vs analyst estimates of $0.14 (34.2% beat)
- Adjusted EBITDA: $109.6 million vs analyst estimates of $99.74 million (12.3% margin, 9.9% beat)
- Revenue Guidance for Q3 CY2026 is $960 million at the midpoint, above analyst estimates of $941.6 million
- Operating Margin: 6%, up from 2.9% in the same quarter last year
- Inventory Days Outstanding: 108, in line with the previous quarter
- Market Capitalization: $5.11 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vishay Intertechnology’s Q2 Earnings Call
- Ruplu Bhattacharya (Bank of America Merrill Lynch) asked about utilization rates at the company’s fabs and expectations for new capacity from the Newport and Germany sites. CEO Joel Smejkal responded that foundry capacity in Korea and China will support AI demand, with automotive approvals at Newport progressing and the German fab on track for mid-2027 commercial output.
- Bhattacharya (BofA) also questioned Vishay’s exposure to MLCC versus polymer tantalum capacitors for AI and automotive. Smejkal explained that polymer tantalum remains a core focus, with capacity expanding in Mexico, while MLCCs are mainly used in military and medical applications.
- Bhattacharya (BofA) inquired about capital allocation between CapEx and buybacks. CFO David McConnell confirmed $400–440 million CapEx for 2026, with capital intensity expected to decline as revenue scales, and noted buybacks are not a near-term focus given growth priorities.
- David Williams (Needham) focused on gross margin expansion and the timeline for reaching Vishay’s long-term margin targets. Smejkal outlined several initiatives, including channel management and factory optimization, and reiterated the goal of reaching 30% gross margin by 2028.
- Melissa Dailey Fairbanks (Raymond James) asked about potential order pull-forwards ahead of price increases. Smejkal commented that backlog updates keep customers from avoiding higher prices, and inventory build-ups remain constrained by strong demand across end markets.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be monitoring (1) the ramp-up and production milestones at Vishay’s new 12-inch wafer fab in Germany, (2) sustained demand for AI, industrial, and automotive components as new capacity comes online, and (3) the company’s ability to maintain margin expansion through product mix optimization and channel management. Additional focus will be placed on the execution of R&D initiatives and any developments in supply chain stability.
Vishay Intertechnology currently trades at $33.61, down from $38.85 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
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