AUO (2409) Q3 2026 earnings summary

Executive summary

• 3Q26 net sales were NT$66,875m, down 5.7% QoQ and 4.3% YoY; operating loss was NT$2,374m and net loss attributable to owners was NT$2,495m.

• 9M26 net sales fell 2.1% YoY to NT$206,798m; operating loss was NT$2,791m versus operating profit of NT$3,032m in 9M25.

Financial highlights

• 3Q26 gross profit was NT$6,782m, with a 10.1% margin versus 13.0% in 2Q26; gross margin included a one-time Green Solutions loss, product-mix changes and weaker notebook demand.

• Operating expenses rose 1.4% QoQ to NT$9,155m; operating margin was -3.5%, versus 0.3% in 2Q26 and -2.6% in 3Q25.

• Consolidated net loss was NT$2,363m; net loss attributable to owners was NT$2,495m and basic EPS was -NT$0.33. Non-operating income was NT$400m, mainly dividend income.

• EBITDA was NT$4.9bn, with a 7.4% margin.

• 9M26 gross profit was NT$24,213m, down 2.5% YoY; net loss was NT$1,282m versus net income of NT$4,066m in 9M25, and EPS was -NT$0.30 versus NT$0.52.

Outlook and guidance

• 4Q26 Display revenue is expected to decline QoQ as seasonal replenishment ends and branded customers remain cautious in panel procurement.

• 4Q26 Mobility Solutions revenue is expected to remain flat QoQ; Vertical Solutions revenue is forecast to decline by a low-to-mid-single-digit percentage, including the energy business separation.

• 2026 depreciation expense is expected at ~TWD 28bn; cash CapEx outflow was revised to no more than TWD 15bn, with some payments deferred to 2027 due to project acceptance timing.

• OPEX ratio target is 11%-12% short term and below 10% over the medium to long term; new technology initiatives are expected to contribute meaningful revenue within two to three years.