Shares declined 4.3% after earnings due to cautious outlook signals and uneven execution despite some growth areas, with investors likely disappointed by signs of deceleration and margin pressure hinted in the commentary.
- Revenue reached $1.6 billion with a non-GAAP gross margin of 39.3% and diluted EPS of $0.74, all stated above midpoint guidance but insufficient to offset investor concerns.
- AI data center remains the fastest-growing segment, with silicon carbide revenue expected to grow nearly 60% in 2026, reflecting strong demand and expanded customer wins.
- Automotive revenue in China grew 13% year-over-year in H1 2026 despite a 4% decline in vehicle sales, driven by increased content per vehicle and market share gains.
- Energy storage system (ESS) revenue expected to rise 40% in 2026, supported by new product introductions such as the 99.3% efficiency EliteSiC hybrid ESS module.
- While leadership emphasized expanding roles and product innovation, the cautious tone and absence of clear upward guidance revisions likely pressured the stock amid ongoing market skepticism.
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