ASUS (2357) Q2 2026 earnings summary

Executive summary

• Achieved record-high consolidated revenue in Q2 2026 (TWD 241B, +39% YoY), operating profit (TWD 19.6B, +230% YoY), and net profit after tax (TWD 19B, +94% YoY), driven by strong AI server, PC, and 3C product demand.

• Server business revenue doubled YoY, with the full-year server growth target raised to 150% YoY; commercial PC shipments up over 50% YoY for six consecutive quarters.

• Demonstrated operational resilience and strong execution, with high-value product mix and innovation in AI, infrastructure, and gaming.

• Continued innovation and product launches in AI PCs, gaming, and healthcare AI, with multiple international awards and industry recognition.

• Revenue for the six months ended June 30, 2026, was NT$466.1B, up 39% YoY; net income attributable to shareholders reached NT$28.8B, a 28% increase YoY.

Financial highlights

• Q2 2026 revenue: TWD 241B (+39% YoY); operating profit: TWD 19.6B (+230% YoY); net profit after tax: TWD 19B (+94% YoY); EPS: TWD 25.6.

• Gross profit for Q2 2026: NT$39.86B, up 85% YoY; gross margin improved to 16.5%, operating margin to 8.1%.

• Cash and equivalents at period end: NT$86.2B; inventories: NT$339.9B; shareholders' equity: TWD 301.3B; total assets: NT$868.5B.

• Gross and operating margins reached historical highs, driven by premium product mix and supply chain resilience.

• Basic EPS for the six months: NT$38.83; Q2 EPS: NT$25.64.

Outlook and guidance

• Q3 2026 guidance: PC revenue to grow 15%-20% QoQ (split evenly between ASP and volume); components up 5%-10%; servers up 10%-15% QoQ and 150% YoY.

• Full-year global PC shipments expected to decline ~4% YoY, with H2 decline >10% due to early stocking in H1.

• Continued investment in AI PCs, edge AI, and HPCs to support multi-year innovation and growth cycles.

• Management focuses on expanding 3C product lines and leveraging acquisitions for growth.