Ichor Holdings posted third-quarter 2026 earnings per share of $0.63, beating the $0.45 analyst consensus. Revenue reached $328.7 million, up 12% from the previous quarter and 37% year over year, but came in just below the $330.11 million estimate.
Profitability improved as gross margin rose to 16% from 14.1% in Q2, while operating margin increased to 8.6% from 5.5%. CEO Phil Barros said gross margin was ahead of the company’s plan, with stronger execution and product mix helping to offset supply-related limits on shipments.
The semiconductor equipment supplier said demand was strong across the market, particularly in advanced etch and deposition applications. Ichor also reported component wins on six new tool platforms outside its traditional gas panel business. Management said these components can contribute more to earnings per dollar of revenue, despite having lower average selling prices than complete systems.
For the fourth quarter, Ichor expects revenue of $345 million to $365 million and earnings per share of $0.65 to $0.75. Its outlook includes gross margin of approximately 16.5%, plus or minus 0.5 percentage point. Executives said around half of the anticipated $10 million revenue reduction in the guidance was related to delays in commercial space launches, with the remainder tied to semiconductor component constraints.
Management said it expects demand to remain strong into 2027 and sees growth in each quarter of that year. The company is expanding manufacturing capacity and increasing proprietary content, while continuing to work through supply constraints and customer timing requirements.
Ichor shares closed regular trading at $36.84, down 5.3% from the previous close, then edged up 0.43% to $37 in after-hours trading following the results.
Sources: Investing.com News.