Ichor Holdings slips after Q4 results show margin pressure despite full-year revenue growth

Shares of Ichor Holdings Ltd (NASDAQ: ICHR) fell in midday trading on Monday after the semiconductor-equipment parts maker reported fourth-quarter and full-year 2025 results that showed modest revenue growth but continued margin pressure and a wider annual loss.

Quarterly Results

Ichor, which supplies critical fluid delivery subsystems and components to semiconductor capital-equipment manufacturers, reported revenue of $223.6 million in the fourth quarter, above the mid-point of prior guidance. That compared with $239.3 million in the third quarter of 2025 and $233.3 million in the year-ago quarter. Fourth-quarter GAAP gross margin was 9.4%, while a non-GAAP measure excluding certain items was 11.7%, down from prior periods. On a GAAP basis, Ichor posted a net loss of $16.0 million, or $(0.46) per share, for the quarter; non-GAAP diluted earnings per share was $0.01.

Full-year Results

For the full fiscal year 2025, Ichor reported revenue of $947.7 million, an 11.6% increase from $849.0 million in fiscal 2024, with a GAAP net loss of $52.8 million and diluted loss per share of $(1.54). On a non-GAAP basis, the company delivered net income of $7.9 million and diluted EPS of $0.23 for the year, compared with non-GAAP net income of $5.9 million and $0.18 per share in 2024.

Executives noted that fourth-quarter results aligned with earlier expectations. Management also provided guidance for the first quarter of 2026, with revenue expected in a $240 million to $260 million range and non-GAAP EPS of $0.08 to $0.16, pointing to sequential improvement in gross margins.

Quarterly and Annual Comparison

Revenue: Q4 revenue of $223.6 million marked a slight decrease from Q3 2025 but was above guidance midpoint. Full-year revenues rose about 12% year-over-year.
Margins: GAAP gross margin remained under pressure at single-digit levels for the quarter and year, though non-GAAP margins held closer to historical norms around the low teens.
Profitability: On a GAAP basis, Ichor remained unprofitable for the quarter and full year, reflecting ongoing cost and mix pressures; non-GAAP results showed profitability in both periods.

52-Week and Trend Context

Over the past 52 weeks, Ichor’s stock has seen significant volatility amid mixed operational results and broader market pressure on technology and semiconductor-related stocks. Ichor previously achieved relative strength ratings that signaled performance leadership versus peers earlier in 2026, though technical indicators have been extended.

Sector and Macro Influences

Shares of semiconductor equipment and software companies have been subject to broader risk sentiment tied to global semiconductor capital expenditure cycles, high interest rates, and macroeconomic concerns that have dampened demand forecasts even as advanced node investments persist. These industry dynamics pressure suppliers like Ichor, which depend on cyclical equipment spending. There were no widely reported analyst upgrades, downgrades, or price target changes specific to Ichor on Monday; if they occur, they typically follow the earnings release and company conference call.

Market Reaction and Outlook

Investors weighed the mixed signals from Ichor’s results: solid top-line growth contrasted with thin margins and recurring losses on a GAAP basis. With guidance pointing to sequential revenue and margin improvement in early 2026, the market is assessing whether demand inflection in core semiconductor markets will materialize. The company will host a conference call and webcast to discuss results and outlook following the earnings release.