Ichor Q3 2026: Margin Surge Drives a Decisive EPS Beat
As seen on the 24/7 Wall St. homepage on November 2, 2026.
Gross margin hit 15.8% against 4.6% a year ago, and that operating leverage carried EPS past expectations even with revenue missing expectations. Management guided Q4 revenue to $345 million to $365 million and says customer visibility now runs well into 2027.
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Ichor Holdings reported Q3 2026 adjusted EPS of $0.63, beating expectations, as GAAP gross margin expanded to 15.8% from 4.6% a year ago, when the period absorbed an inventory impairment charge.
Revenue of $328.7 million came in just below estimates, missing expectations, while the top line still grew 37% from a year ago. Management credited a realignment of the global manufacturing footprint toward high-volume sites and a steady increase in proprietary Ichor content.
Operating income rose 217% year over year to $22.8 million, and GAAP net income swung from a loss to a profit this quarter. Operating expenses also fell sequentially, adding further lift to the bottom line.
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One watch item for investors is cash flow. Operating activities consumed $28.83 million during the quarter as inventories and receivables expanded alongside the revenue ramp, producing negative free cash flow of $39.5 million.
Ichor guided Q4 2026 revenue of $345 million to $365 million and non-GAAP EPS of $0.65 to $0.75, with demand visibility extending into 2027. CEO Phil Barros called this the early stages of a historic semiconductor cycle, noting Q3 revenues were up nearly 50% from Q4 2025, the steepest three-quarter ramp in the company's history.
After six consecutive quarters of missing or barely clearing estimates, Q3 2026 marks the first decisive beat, a sign the margin restructuring work is beginning to compound.
Mentioned: ICHR