Key Highlights

  • ICHR third-quarter 2026 Revenue reached $328.7 million, a 12% sequential gain and a 37% year-over-year increase.
  • Gross Margin on a GAAP basis reached 15.8%, a step up from 13.9% last quarter and 4.6% during the prior-year period.
  • Diluted earnings per share were $0.55 under GAAP and $0.63 on a non-GAAP basis, versus a non-GAAP Deficit of $0.42 a year before.
  • Operations consumed $28.8 million of cash, with inventory up $39.5 million and receivables up $36.0 million.
  • Q4 revenue guidance is $345 million to $365 million; non-GAAP EPS is seen at $0.65 to $0.75.

Sales Expansion of 37% Alongside a Gross Margin Rise to 15.8%

Results for the period ended Sep 25, 2026 were released on Nov 2, 2026 by Ichor Holdings (NASDAQ:ICHR). Sales equaled $328.7 million, which was 12% above the second-quarter figure of $294.8 million and 37% above the $239.3 million of a year earlier.

The company's engineering and Manufacturing work centers on fluid delivery subsystems and components used in semiconductor Capital equipment. Gross margin under GAAP stood at 15.8% and on a non-GAAP basis at 16.0%, versus 4.6% and 5.1% during Q3 2025. Leadership said the 16% mark arrived a quarter early, with incremental gross margin at 33% versus a projected 25% to 30%.

Operating margin, measured under GAAP, reached 6.9% compared with minus 8.1% twelve months back. On a non-GAAP footing, the Operating Margin was 8.6%, improved from 5.5% in Q2.

GAAP Profit of $20.9 Million Coexists With a Working Capital Build-Up

Net income under GAAP reached $20.9 million, equal to $0.55 per diluted share, versus $1.0 million ($0.03) in Q2 and a $22.9 million loss ($0.67) a year earlier. Non-GAAP profit reached $24.2 million, which works out to $0.63 a diluted share. Management put adjusted EBITDA at $33.9 million.

Operating activities absorbed $28.8 million in cash. Inventory build reached $39.5 million, while receivables expanded by $36.0 million, a pattern management linked to the sales ramp. Inventory turned 3.6 times and receivables stayed at 39 days, comparable to the previous quarter. Spending on capital projects came to $10.7 million.

Cash and equivalents finished at $213.5 million, which is $43.0 million lower than in Q2 yet $115.2 million higher than at year-end 2025. Net proceeds of $195.4 million from selling 2.5 million ordinary shares helped. Debt totaled $119 million, while the net debt coverage ratio registered 0.8.

In-House Content in Gas Systems Clears 30% as Constrained Tool Supply Redirects Output

Tight supply of leading-edge etch and deposition equipment led management to lean on components, which sell for less than full systems but earn more per revenue dollar. Ichor secured component awards on six additional tool platforms beyond the gas panel. In-house content within its gas systems finished the quarter above 30%, up from 25% in Q2, with roughly 35% targeted by the close of the fourth quarter.

Relocation work continued, with every planned transfer to Mexico finished and Malaysian machining and welding certified by both of the biggest accounts. Headcount in manufacturing has risen 40% this year, with 320 hires made during the third quarter. Management anticipates sequential growth in each quarter of 2027.

Fourth-Quarter Projections Span $345 Million to $365 Million in Sales

Looking ahead to Q4, Ichor sees sales in a $345 million to $365 million band, GAAP per-share earnings of $0.50 to $0.60, plus non-GAAP per-share earnings of $0.65 to $0.75. The gross margin target sits near 16.5%, with a 0.5-point tolerance either way. Using the middle of the range, full-year 2026 revenue expansion comes to around 30%.