FIT Hon Teng (6088) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 grew 8.6% year-over-year to $1.2 billion, driven by AI server market expansion and new connectivity solutions.

• Gross profit increased 13.2% year-over-year to $243 million, with gross margin up 83 basis points to 20%.

• Operating income surged nearly 90% year-over-year to $38 million, aided by efficiency improvements and lower OPEX ratio.

• Net income rose 67% year-over-year, though partially offset by foreign exchange headwinds.

• Unaudited consolidated financial results for the three months ended March 31, 2026, were released to comply with disclosure requirements in both Hong Kong and Taiwan.

Financial highlights

• Cloud data center revenue grew 58% year-over-year in Q1, with AI server-related revenue up 109%.

• General-purpose server business grew 30% year-over-year, outperforming the broader market.

• Gross profit margin expanded by 83 bps to 20.31% year-over-year.

• Basic EPS rose 50% to $0.15.

• Cash and cash equivalents grew 15.2% to $1,642M as of March 31, 2026.

Outlook and guidance

• Full-year and Q2 guidance maintained for stable smartphone segment revenue.

• Cloud data center revenue expected to increase mid-40% year-over-year in Q2 and mid-70% for the full year.

• 2026 full-year revenue expected to grow over 15% year-over-year.

• Consumer interconnect revenue outlook lowered to a high-teens decline for Q2 and low single-digit decline for the year.

• Automobility segment forecast revised from mid-teens growth to flat for Q2 and full year.