iSoftStone Information Technology (301236) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥18.61 billion, up 17.91% year-over-year, driven by AI-related business and robust growth in computing products and smart electronics.

• Net loss attributable to shareholders widened to ¥264.66 million, with basic EPS at -0.26, reflecting increased costs and investments.

• AI-related revenue accounted for 61.46% of total, up 46.61% year-over-year, with significant advances in AI infrastructure, computing, and scenario intelligence.

• International business expanded, with 15 overseas branches and a global delivery network, while China operations maintained double-digit growth.

Financial highlights

• Operating income: ¥18.61 billion, up 17.91% year-over-year.

• Net loss attributable to shareholders: ¥264.66 million, down from a loss of ¥142.60 million last year.

• Gross margin: 9.62%, down from 10.67% year-over-year.

• Operating cash flow: -¥3.95 billion, a significant decrease from -¥479 million year-over-year, mainly due to increased inventory and raw material procurement.

• Total assets: ¥34.69 billion, up 26.54% from year-end 2025.

• Net assets: ¥13.09 billion, up 26.06% from year-end 2025.

• Non-recurring gains: ¥122.81 million, mainly from government grants and fair value changes.

Outlook and guidance

• Management expects continued growth in AI-driven business, with focus on AI infrastructure, computing, and scenario intelligence.

• Ongoing investments in R&D, digital energy, and international expansion are expected to support long-term growth.