ASUS (2357) investor relations material

Executive summary

• Q1 2026 consolidated revenue reached NT$208.4 billion, up 41%-44% year-over-year and 2% quarter-over-quarter, setting a new record.

• Enterprise segment revenue surged 190% year-over-year, with strong growth in gaming (+20%-25%) and consumer (+6%) segments; enterprise now 37% of total.

• Net profit after tax was NT$9.8 billion, down 14% quarter-over-quarter and 23% year-over-year; EPS was NT$13.19.

• Server business achieved nearly threefold year-over-year revenue growth and is projected to double for the full year.

• Demonstrated robust business portfolio with hyper-growth in enterprise and strategic partnerships, sustaining dominant market share in premium gaming and consumer markets.

Financial highlights

• Gross margin was 13.8%-15%, down from 14.8%-16% in the previous quarter/year due to higher server revenue mix.

• Operating profit was NT$10.5-12.0 billion, up 30% quarter-over-quarter but down 8% year-over-year; operating margin reached 5.4%-5.8%.

• Inventory rose to NT$247.1-260.8 billion (122 days), reflecting component stockpiling and delayed server orders.

• Cash and equivalents decreased to NT$42.8-58.0 billion, down 43%-50% year-over-year.

• EPS for the quarter was NT$13.2-13.19.

Outlook and guidance

• Q2 2026: PC revenue expected to grow 10%-15% quarter-over-quarter and year-over-year; component revenue flat or down 10% year-over-year; server revenue up 50% quarter-over-quarter and 200% year-over-year.

• Full-year server revenue now guided to 100% growth, driven by strong order visibility and neocloud customers.

• PC shipment volume targeted to match last year despite a projected 10%-15% global market decline; ASP increases expected to drive revenue growth.

• Board proposed a cash dividend of NT$42 per share for 2025 earnings, pending shareholder approval.

• Operating margin for Q2 targeted at 4%-5%.