Innolux (348) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was NT$63,699,658 thousand; operating profit was NT$1,633,384 thousand, versus an operating loss of NT$778,141 thousand in Q2 2025.

• H1 2026 revenue reached NT$130,344,196 thousand and profit attributable to parent shareholders was NT$6,161,018 thousand, versus NT$112,163,677 thousand and NT$201,413 thousand in H1 2025.

• Display faced weak consumer sentiment and rising component costs, while non-display showed steady improvement; strategy emphasizes higher-margin growth and asset-light operations.

Financial highlights

• Q2 gross margin was 14.6%, up from 14.4% in Q1 2026 and 8.4% in Q2 2025; net profit attributable to owners was NT$4,531,515 thousand.

• Q2 basic and diluted EPS were NT$0.57, versus a loss per share of NT$0.10 in Q2 2025; H1 EPS was NT$0.77, versus NT$0.03 in H1 2025.

• H1 cash from operations was NT$14,334,953 thousand, versus NT$7,049,410 thousand in H1 2025.

• H1 depreciation and amortization totaled NT$15,396,790 thousand; property, plant and equipment capital expenditures were NT$5,194,751 thousand.

• Q2 net profit benefited from deferred tax assets related to loss carry-forwards; H1 deferred tax benefit was NT$3,516,311 thousand.

Outlook and guidance

• TV shipments expected flat or slightly higher year over year, with focus on 50-inch-and-below models for cost advantage.

• High-end and OLED monitors saw strong demand; high-end models exceeded 50% of monitor shipments.

• Notebook demand expected to slow over the next 6–9 months after inventory pull-in and amid high memory prices; the longer-term AI PC cycle remains a positive.

• Industrial demand remains steady, driven by Edge AI; strategy prioritizes high-margin, non-commodity and non-panel businesses.