Espressif Systems (688018) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 33.38% YoY to RMB 889.3m; Q1–Q3 revenue increased 23.94% to RMB 2,370.0m.

• Q1–Q3 attributable net income grew 46.76% YoY to RMB 552.9m; excluding non-recurring items, it rose 49.09% to RMB 519.1m.

• Earnings growth reflected higher revenue, improved gross margin and expense growth below revenue growth, releasing operating leverage.

Financial highlights

• Q3 profit attributable to shareholders was RMB 218.7m, up 89.35% YoY; adjusted profit was RMB 207.5m, up 90.43%.

• Q1–Q3 total profit was RMB 577.7m, up 48.22%; attributable net income was RMB 552.9m, up 46.76%.

• Q1–Q3 gross profit increased 34.14% YoY to RMB 1,184.3m.

• Q1–Q3 operating cash flow was RMB 318.3m, up 2.66% YoY.

Outlook and guidance

• Product expansion targets processor, Wi-Fi 6E and low-power applications; sales and ecosystem investment increased to support new products and market reach.

• Product roadmap spans connectivity-focused chips through higher-performance AI and compute platforms, including ESP32-P4, ESP32-S31, ESP32-H4 and ESP32-E22.