Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 6 of last 7 quarters
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Littelfuse's strong quarter underscores the accelerating demand for electrical protection and power conversion hardware in AI data center buildout, with data center as the fastest-growing market and high-voltage architectures poised to drive 2-4x content uplift. The company's record bookings and design wins, including battery energy storage and fusion power applications, signal continued expansion of the AI infrastructure power chain. Basler's outperformance in grid/utility infrastructure further highlights the critical role of grid modernization in supporting data center growth.
Littelfuse delivered Q2 net sales of $739M, up 20% YoY (14% organic), with adjusted EPS of $4.19, up 47%. Electronics segment sales grew 21% (20% organic) with margin up 470 bps to 26.3%; Industrial segment sales grew 52% (16% organic) with Basler contributing ~36%; Transportation sales grew 2% (1% organic). Data center, diversified industrial, and grid/utility were key growth drivers, while HVAC recovery came faster than expected. The company announced the closure of its Allen, Texas power semiconductor fab, and secured a $20M+ annual revenue design win in transportation and a battery energy storage design win for data center backup units.
Management raised Q3 guidance, expecting net sales of $780M–$800M (26% growth YoY at midpoint, 21% organic) and adjusted EPS of $4.85–$5.05 (68% growth YoY at midpoint). They increased Basler's 2026 revenue contribution to $135M–$140M and EPS contribution to $0.25–$0.30. Data center remains the fastest-growing market, with high-voltage architecture content expected to ramp in 2027 and beyond. Power semiconductor portfolio rationalization continues, including the Allen, Texas fab closure slated for 2027, which is expected to enhance 2027 Electronics segment profitability. Management reaffirmed 2030 targets of $4.5B revenue and $1.1B adjusted EBITDA, citing broad-based momentum and record bookings.
“We delivered sales and adjusted earnings above our expectations with net sales of $739 million, up 20% year-over-year and 14% organically.”
on Q2 results
“We entered the quarter with record bookings and our book-to-bill is well north of 1.0.”
on Demand momentum
“Our solution offers an unparalleled 4.5 kV operation in an extremely compact footprint.”
on Fusion power design win
How can the company lean into the better breadth in electronics and industrial, and can you comment on data center positioning and incremental margins?
Greg noted broad-based momentum across all end markets, with strengthening in industrial, HVAC, and diversified industrial. Data center remains the fastest-growing market, with design wins more than doubled YoY, heavily focused on high-voltage architectures expected to ramp in 2027+. Abhi added that data center content opportunity is 2-4x higher in high voltage, supporting a 25-30% CAGR over 5 years. On margins, Abhi cited volume leverage, operational execution, and mix, with passives and protection having high flow-through.
Can you provide more color on the savings from the Allen semi-fab closure and the magnitude of record bookings?
Greg framed the power semi rationalization as a multiyear process, with Allen being an early step. Abhi said savings will be realized in the back half of 2027, simplifying footprint and improving cost structure. On bookings, Greg noted record company-wide bookings with broad-based strength across data center, industrial, and HVAC, and design wins up double digits. Abhi added that sequential organic growth improvement (9% Q1, 14% Q2, 21% Q3 guide) supports the strong booking commentary.
Are you seeing share gains from fragmented competition, and what's driving the HVAC recovery?
Greg said share gains are largely design-position driven, with some opportunistic share, but not the primary driver. On HVAC, Greg noted a strong market position and a faster-than-expected market recovery. Abhi added that HVAC was down for four straight quarters, and this is the first YoY growth since first half of 2025.