IN Brief:
- Second-quarter book-to-bill reached 1.32, comprising 1.23 for semiconductors and 1.40 for passive components.
- Adjusted revenue increased 9.5% sequentially to $918.6 million.
- Backlog extended to 6.1 months as demand strengthened across regions, channels, and end markets.
Vishay Intertechnology has reported stronger order intake across discrete semiconductors and passive components, with second-quarter bookings exceeding shipments and backlog extending beyond six months.
The group recorded GAAP revenue of $888.6 million for the quarter ended 4 July 2026. Adjusted revenue, which removes $30 million of tariff refunds passed through to customers without affecting gross profit, reached $918.6 million — 9.5% above the previous quarter and 20.5% higher than a year earlier.
Vishay’s overall book-to-bill ratio was 1.32, comprising 1.23 for semiconductors and 1.40 for passive components. A figure above one means the value of new orders exceeded the value of products shipped during the period, although it does not guarantee that every order will survive later changes to customer schedules or inventory plans.
Quarter-end backlog represented 6.1 months of sales, compared with 5.7 months after the first quarter. Rising shipments, a book-to-bill ratio well above one, and a longer backlog provide a firmer demand signal than an isolated product launch, particularly for a supplier whose portfolio spans industrial, automotive, computing, communications, medical, and aerospace systems.
The improvement was spread across most product groups. Diode revenue rose to $187 million, optoelectronic-component revenue reached $70.1 million, resistor revenue was $215 million, inductor revenue reached $104.2 million, and capacitor revenue increased to $153.4 million. MOSFET revenue was $188.9 million.
Orders were similarly broad. Book-to-bill reached 1.36 for diodes, 1.33 for optoelectronics, 1.43 for resistors, 1.42 for inductors, and 1.35 for capacitors. MOSFETs were the weakest of the main groups at 1.08, still above one but materially below the 1.57 recorded during the first quarter.
Vishay attributed the wider improvement to stronger demand across end markets, channels, and regions. Its quarterly presentation identified activity linked to smart-grid equipment, AI-server power, automotive electronics, medical systems, industrial programmes, and aerospace and defence.
Distribution sales also improved as component consumption increased, while passive-component orders reached their highest level in more than 20 years. That figure is notable, but it requires caution. Distributors can rebuild inventory rapidly when lead times begin to lengthen, and customers may place protective orders ahead of anticipated shortages rather than immediate production needs.
The more useful evidence will be whether point-of-sale data, factory loading, and repeat orders remain aligned as backlog converts into shipments. An order cycle driven mainly by inventory replenishment can weaken quickly once channel stocks recover, whereas sustained end-market demand should continue appearing in consumption data.
Passive components are sometimes treated as the less volatile part of the electronics supply chain, but their order pattern can reveal changes in complete-system production before headline processor shipments do. Power conversion, filtering, timing, sensing, and signal conditioning require large numbers of resistors, capacitors, and inductors.
Broad passive demand can therefore indicate that customers are moving finished designs towards production rather than buying only scarce or strategically important semiconductors. The strength across Vishay’s product groups suggests the present recovery is not confined to one constrained device family.
Manufacturing capacity will determine how much of that demand reaches revenue without extending lead times. Vishay is expanding internal and external capacity while reshaping its global manufacturing footprint, a programme that increases capital requirements before the resulting output is fully absorbed.
Inventories had risen to $807.1 million by the end of the quarter, compared with $759.2 million at the end of 2025. Higher inventory can support faster delivery during a recovery, but it also raises the risk of write-downs if customers later reduce schedules or if demand becomes concentrated in a narrower set of products than expected.
Gross margin improved to 23.3%, compared with 21% in the first quarter and 19.5% a year earlier. Operating margin reached 6%, while diluted earnings were $0.19 per share. The improvement suggests better utilisation and product mix, although the company is still carrying the cost of capacity expansion and a comparatively long cash-conversion cycle.
Management expects third-quarter revenue between $945 million and $975 million, with gross margin of 24%, plus or minus half a percentage point. That forecast assumes the present order strength continues into shipments rather than remaining parked in backlog.
The second-quarter figures point to a broader component recovery, but purchasing departments are not the final judge. Vishay now has stronger orders across semiconductors and passives; the next test is whether production schedules consume them at the pace implied.
