Compal Electronics (2324) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were NT$238,294,676 thousand, up 32% YoY and 18% QoQ; net income attributable to parent was NT$3,133 million, up 549% YoY, with EPS of NT$0.73.

• Q2 consolidated net income was NT$3,608,853 thousand, versus NT$929,194 thousand a year earlier.

• Non-PC revenue grew 52% YoY to NT$82 billion and represented 34% of Q2 revenue; AI servers accounted for about 70% of server revenue.

• AI transformation, operational efficiency and expanded manufacturing capacity are supporting growth in intelligent systems, infrastructure and new markets.

Financial highlights

• Q2 gross profit was NT$11,021,058 thousand, up from NT$10,585,119 thousand YoY; operating income was NT$2,854,754 thousand, up from NT$2,623,574 thousand.

• Gross margin was 4.6%, down from 5.3% in Q1; operating margin rose to 1.2% from 1.0%.

• H1 net sales totaled NT$439,598,212 thousand, up 16% YoY; net income attributable to parent was NT$5,100 million, up 91%, with EPS of NT$1.18.

• Q2 mark-to-market gains on financial assets contributed NT$1.8 billion to non-operating income.

• Book value per share was NT$31.3 at Q2-end, up from NT$29.7 at Q1-end; cash and equivalents were NT$82,928,768 thousand.

Outlook and guidance

• Q3 server revenue is expected to grow by high double digits QoQ, driven by AI servers; PC units are expected to remain flat, with ASP increases supporting revenue, while smart-device revenue is projected to decline.

• FY26 non-PC mix is targeted to approach 40%, with servers expected to reach 10% of total revenue.

• For 2027, servers are projected to contribute 30%–40% of revenue and PC mix to fall below 50%.

• FY26 PC shipments are expected to decline at a mid-teens rate; the broader PC market faces shipment declines, while premium and AI-enabled devices support higher ASPs.