Earnings
Home›Earnings›Guidance›Ichor Holdings targets sequential revenue gains and ma…
Ichor Holdings targets sequential revenue gains and margin expansion
Management said Q2 revenue growth was driven by demand for advanced etch and deposition for AI infrastructure, and it projects gross margin to rise further in the remaining quarters of 2026.
Ichor Holdings outlined Q2 performance that included 15% sequential revenue growth, attributing the increase to strengthening demand for advanced etch and deposition applications used in AI infrastructure and gate-all-around architectures, according to a Yahoo Finance earnings call summary.
The company reported gross margin expansion of 130 basis points to 14.1%, citing structural footprint realignment and an improved product mix that favored proprietary components as well as non-semi business. Management also pointed to an isolated part shortage in flow control as the reason for a Q2 revenue shortfall, saying the issue was resolved within days of quarter end and the volume moved into Q3.
Looking ahead, Ichor said it expects sequential revenue growth exceeding 10% in each of the next two quarters, with second-half volumes at least 25% higher than the first half. The company also projected full-year 2026 revenue to align with the high end of WFE expectations, representing at least a 30% increase over 2025, and expects structural improvements to add an additional 100 basis points of gross margin expansion in each of the remaining two quarters of 2026.
Ichor added that proprietary content is targeted to reach a 35% run rate by the end of Q4 2026, up from about 25% at the end of Q2. The company also reported completing a $200 million ATM equity offering during the quarter, generating $195 million in net proceeds to enhance liquidity.