Vishay Intertechnology (NYSE:VSH) Misses Q2 Sales Targets - StockStory

Semiconductor manufacturer Vishay Intertechnology (NYSE:VSH) fell short of the market’s revenue expectations in Q2 CY2026, but sales rose 16.6% year on year to $888.6 million. On the other hand, next quarter’s outlook exceeded expectations with revenue guided to $960 million at the midpoint, or 2% above analysts’ estimates. Its non-GAAP profit of $0.19 per share was 34.2% above analysts’ consensus estimates.

Is now the time to buy Vishay Intertechnology? Find out in our full research report.

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: $104.8 million vs analyst estimates of $99.74 million (11.8% margin, 5% 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
• Free Cash Flow was $10.31 million, up from -$73.17 million in the same quarter last year
• Inventory Days Outstanding: 108, in line with the previous quarter
• Market Capitalization: $5.96 billion

“For the second quarter, Vishay delivered 9.5% sequential growth to adjusted revenue of $919 million, exceeding the top end of our revenue guidance and representing continued strengthening demand across all end markets, channels and regions,” said Joel Smejkel, president and CEO.

Company Overview

Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Vishay Intertechnology grew its sales at a mediocre 2.8% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.

Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. Vishay Intertechnology’s annualized revenue growth of 3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.

This quarter, Vishay Intertechnology’s revenue grew by 16.6% year on year to $888.6 million but fell short of Wall Street’s estimates. Beyond the miss, this marks 5 straight quarters of growth, implying that Vishay Intertechnology is in the middle of its cycle - a typical upcycle generally lasts 8-10 quarters. Company management is currently guiding for a 21.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 18.1% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.

Product Demand & Outstanding Inventory

Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’s capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.

This quarter, Vishay Intertechnology’s DIO came in at 108, which is 7 days above its five-year average. These numbers suggest that despite the recent decrease, the company’s inventory levels are higher than what we’ve seen in the past.

Key Takeaways from Vishay Intertechnology’s Q2 Results

It was good to see Vishay Intertechnology beat analysts’ EPS expectations this quarter. We were also excited its operating income outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue missed. Overall, this print was mixed. The market seemed to be hoping for more, and the stock traded down 3.5% to $37.51 immediately after reporting.

Is Vishay Intertechnology an attractive investment opportunity right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).