---
title: "Vishay's record quarter and 12% surge leave the stock $2.94 below its $30.16 note conversion price"
description: "A record quarter and a 12 percent surge carry the stock from $27.22 toward the $30.16 conversion price of its $750 million 2030 notes, and the same 8-K publishes the share count each level above that trigger will mint."
publisher: "The Inference"
section: "Chips"
published: 2026-11-04T16:14:21.419Z
modified: 2026-11-04T16:14:21.419Z
canonical: https://theinference.org/article/vishay-s-record-quarter-and-12-surge-leave-the-stock-2-94-below-its-30-16-note-conversion-price
language: en
keywords: "Vishay Intertechnology, Earnings, Semiconductors, Convertible Notes, Guidance"
---

# Vishay's record quarter and 12% surge leave the stock $2.94 below its $30.16 note conversion price

> A record quarter and a 12 percent surge carry the stock from $27.22 toward the $30.16 conversion price of its $750 million 2030 notes, and the same 8-K publishes the share count each level above that trigger will mint.

[Vishay Intertechnology](https://theinference.org/markets/companies/vishay-intertechnology), the Malvern, Pennsylvania maker of the least glamorous parts on an AI server board, resistors, capacitors and the power MOSFET transistors that switch current, filed the best quarter in its history on November 4 and watched the stock surge 12 percent in early trading [1][4].

Revenue hit $978.9 million, above the top of the company's own $945–975 million guide and the Street's $963.55 million; diluted EPS of $0.37 beat consensus of $0.28 by nine cents [1][3]. A week ago the setup looked the other way: the stock sat 28 percent under its high with 11.67 percent short interest, and [the whole print hinged on a 24 percent gross margin guide](https://theinference.org/article/vishay-reports-november-4-with-a-24-gross-margin-guide-and-the-stock-down-28-from-its-high) [5].

## The margin promise is being kept

Gross margin came in at 25.5 percent against that 24 percent guide, up from 23.3 percent in the second quarter and 19.5 percent a year ago; operating margin reached 9.4 percent from 2.4 percent [1]. Orders back the recovery: book-to-bill of 1.29 and a backlog of 6.6 months [1]. Q4 is guided to $990 million of revenue, plus or minus $15 million, with gross margin rising again to 26.0 percent [1]. The same quarter last year carried a net loss of $7.9 million [1].

*Chart: **Revenue has risen six quarters running to a record $978.9 million** Column chart of Vishay revenue by quarter, rising from 735 million dollars in Q3 2024 to 889 million in Q2 2026, with the fourth-quarter guide near 990 million drawn as an estimate.*

*Revenue has climbed for six quarters, from $735 million in Q3 2024 to a record $978.9 million in Q3 2026; the Q4 guide adds more. Source: Vishay quarterly figures from its SEC filings; Q4 from the company's guide [7]*

*Chart: **Vishay's gross margin has climbed past the 24% guide** Column chart of Vishay gross margin by quarter, rising from 19 percent in Q1 2025 to 25.5 percent in Q3 2026, with the Q4 2026 guide at 26 percent drawn as an estimate.*

*Vishay's gross margin has risen four quarters running, past its 24 percent guide [1][6]*

## Every leg higher mints shares

The number the wire skipped sits in the same 8-K, in an unusual Item 7.01 laying out how fourth-quarter diluted EPS will be computed [2]. The company's $750 million of convertible notes due 2030 convert at $30.16, and the stock closed November 3 at $27.22, $2.94 below that trigger [2][3].

Below a $30.16 average price, the notes add nothing and diluted shares run about 157 million; at a $35 average, 161 million; at $40, 164 million; at $50, 168 million; at $60, 171 million [2]. The principal itself must be repaid in cash; only the value above the strike can settle in stock [2].

And the basic count has already grown from 135.7 million weighted shares a year ago to about 153 million outstanding, mostly through June's $830 million share sale that funds [a roughly €1 billion, 300mm power-chip fab at Itzehoe in Schleswig-Holstein, Germany](https://theinference.org/article/germany-hands-vishay-a-241-million-check-for-its-power-chip-fab-four-days-before-its-margin-test), of which German taxpayers are paying €215 million [2][6].

*Chart: **Vishay's own table: 157 million diluted shares below $30.16, 171 million at $60** Bars chart of Vishay's projected diluted share count at average stock prices from below $30.16 to $60, rising from 157 million to 171 million.*

*Vishay's own 8-K table: 157 million diluted shares below $30.16, 171 million at a $60 average [2]*

## Who pays for the turnaround

"Vishay 3.0" is CEO [Joel Smejkal](https://theinference.org/markets/people/joel-smejkal), president and CEO, the name for his plan to lift margins and add capacity; the record quarter shows it working [1]. But at a $40 average next quarter, the company's own formula computes EPS on roughly 7 percent more shares than exist today [2].

Shareholders and a German subsidy have paid for the recovery so far; the rally from here, above $30.16, pays noteholders too [1]. Whether Smejkal's margin promise outruns the share-creation machine is the trade, and the fourth-quarter print, with 26 percent margin guided, is the next reading [1].

## Takeaway

Vishay's record quarter beat its own guide on revenue and margin, but the same 8-K shows each dollar the stock climbs past the $30.16 conversion price of its $750 million 2030 notes mints millions of new shares, so the rally pays noteholders too.

## Sources

1. [GlobeNewswire, Vishay Intertechnology Reports Third Quarter 2026 Results, 4 November 2026](https://www.globenewswire.com/news-release/2026/11/04/3395195/0/en/vishay-intertechnology-reports-third-quarter-2026-results.html)
2. [SEC EDGAR, Form 8-K, Vishay Intertechnology Inc, filed 4 November 2026](https://www.sec.gov/Archives/edgar/data/103730/000010373026000079/0000103730-26-000079-index.htm)
3. [StreetInsider, Vishay Intertechnology (VSH) Tops Q3 EPS by 9c; Offers Guidance, 4 November 2026](https://www.streetinsider.com/Earnings/Vishay+Intertechnology+%28VSH%29+Tops+Q3+EPS+by+9c+%3B+Offers+Guidance/27285849.html)
4. [Investing.com, Vishay shares surge 12% on strong third quarter beat, 4 November 2026](https://www.investing.com/news/earnings/vishay-shares-surge-12-on-strong-third-quarter-beat-93CH-4998914)
5. [The Inference, Vishay reports November 4 with a 24% gross margin guide and the stock down 28% from its high, 30 October 2026](https://theinference.org/article/vishay-reports-november-4-with-a-24-gross-margin-guide-and-the-stock-down-28-from-its-high)
6. [The Inference, Germany hands Vishay a $241 million check for its power-chip fab, four days before its margin test, 31 October 2026](https://theinference.org/article/germany-hands-vishay-a-241-million-check-for-its-power-chip-fab-four-days-before-its-margin-test)
7. [Vishay Intertechnology, quarterly figures from its SEC filings, retrieved 4 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000103730)


---

Vishay's record quarter and 12% surge leave the stock $2.94 below its $30.16 note conversion price — The Inference. Canonical: https://theinference.org/article/vishay-s-record-quarter-and-12-surge-leave-the-stock-2-94-below-its-30-16-note-conversion-price