A month has gone by since the last earnings report for Vishay Intertechnology (VSH Quick QuoteVSH - Free Report) . Shares have added about 54.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Vishay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

VSH Q1 Earnings Beat Estimates on Strong Volume and Orders

Vishay posted first-quarter 2026 earnings of 5 cents per share, topping the Zacks Consensus Estimate by 66.67%. Results also improved from a loss of 3 cents in the year-ago quarter.

Revenues came in at $839.2 million, up 17.3% year over year and surpassed the consensus mark by 2.92%. The company ended the quarter with a book-to-bill of 1.34, reflecting solid order momentum.

VSH’s Q1 Results Beat as Volume Ramps Up

Vishay Intertechnology’s top-line gain was largely volume-driven. Management cited improving market conditions, with higher shipments across channels and end markets helping offset a modest decline in average selling prices. Foreign currency, particularly the euro, also provided a tailwind.

Vishay Intertechnology’s operating backdrop improved alongside demand recovery. Management emphasized that customer programs in multiple end markets are ramping up, with artificial intelligence (AI)-related applications remaining a key source of strength and industrial demand accelerating.

Vishay Highlights Broad-Based Demand Across End Markets

Automotive revenues rose 3% sequentially, supported by OEM demand in the Americas and Europe as customers increased electronic content and began ramping up hybrid and EV programs. Management also pointed to progress in positioning the company with OEMs and Tier 1 suppliers, including increased collaboration on technology road maps and forward demand planning.

Industrial power extended its streak of sequential growth, with revenues rising 7%. The growth was driven by demand tied to electrical power transmission, renewables, smart metering and factory automation.

Aerospace and defense demand strengthened as well, which management attributed to increased U.S. government funding availability and early signs of production ramp-ups across allied countries. During the quarter, revenues from the Aero/Defense end market rose 14% sequentially.

The Healthcare end market’s revenues grew 5% sequentially, mainly benefiting from ongoing demand from long-standing customers and continued cross-selling. Other end market revenues remained flat on a quarter-over-quarter basis.

VSH’s Segment Mix Shows Strength in Passives

On a segment basis, Resistors remained the largest contributor, generating $203.7 million in revenues in the quarter. MOSFETs delivered $174 million, while Diodes produced $163.7 million, reflecting growth across the company’s semiconductor and passive portfolios. On a year-over-year basis, revenues from Resistors, MOSFETs and Diodes increased 13.5%, 22.4% and 16.1%, respectively.

Capacitors posted $146.7 million of sales, and Inductors added $92.2 million. On a year-over-year basis, revenues from Capacitors and Inductors jumped 25% and 9.6%, respectively. Optoelectronic Components revenues increased 15% to $58.9 million. Management also pointed to broad-based order growth across technologies and regions, supported by increased consumption and inventory replenishment.

Vishay’s Margins Expand Despite Input Cost Pressure

Profitability improved as higher volumes drove better manufacturing efficiencies. Gross profit jumped 30.2% year over year to $176.6 million, while gross margin expanded 200 basis points to 21%.

Selling, general and administrative (SG&A) expenses increased 14.7% to $154.5 million, which management tied primarily to higher stock and bonus compensation. As a percentage of revenues, SG&A expenses came at 18.4% in the first quarter, down from 18.8% in the year-ago quarter.

As a result of increased gross margin and lower SG&A expenses as a percentage of revenues, operating margin improved 250 basis points to 2.6%. Operating income increased to $22.1 million from $0.8 million in the year-ago quarter.

VSH’s Cash Flow Reflects Heavy Investment Cycle

Vishay Intertechnology generated $63.7 million in operating cash flow, helped by working capital discipline and increased use of its accounts receivable securitization program. The company continued deploying cash toward capacity expansion projects, with capital expenditures totaling $110.7 million for the quarter.

Free cash flow was negative $46.9 million, consistent with the elevated investment phase. The quarter ended with $479.4 million in cash and cash equivalents, while long-term debt stood at $983.1 million. Inventories increased to $790.8 million from $759.2 million at the end of the previous quarter, with management citing higher metal prices and buffer stock builds amid geopolitical uncertainty.

Vishay Projects Higher Q2 Revenues and Gross Margin

For the second quarter of 2026, Vishay Intertechnology expects revenues between $875 million and $905 million, indicating year-over-year growth of 16.8% at the midpoint. Gross margin is projected at 22% (+/- 50 basis points), with management calling out higher logistics costs and continued metals and materials pressure, along with inefficiencies tied to labor ramp-up. In the second quarter of 2025, the company’s gross margin was 19.5%.

SG&A is forecasted to be $155 million (+/- $3 million), as the company continues investing in R&D and customer-facing activities. For full-year 2026, management reiterated plans for $400 million to $440 million of capital spending, with roughly half allocated to the 12-inch wafer fab project in Germany.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 100% due to these changes.

VGM Scores

At this time, Vishay has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Vishay has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.