Lite-On Technology (2301) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached NT$43.41 billion, up 19.2% year-over-year, driven by strong AI and cloud demand, with Cloud & AIoT segment revenue up nearly 50% YoY.

• Net profit after tax was NT$3.78 billion, EPS NT$1.66, up 10% YoY, marking a five-year Q1 high.

• Cloud-related business revenue grew over 70% due to increased AI server power management and energy storage shipments.

• Optoelectronics and ITC segments saw enhanced shipments, especially in high-end and LEO satellite power supplies.

• Growth momentum continues despite a 2% sequential revenue decline due to consumer segment adjustments.

Financial highlights

• Gross profit was NT$9.4 billion (21.7% margin), operating profit NT$4.1 billion (9.4% margin), both up YoY.

• Excluding a one-time inventory write-down (1.1% of revenue), gross margin was 22.8% and operating margin 10.5%.

• Cloud & AIoT operating profit grew 60% YoY to NT$3.43 billion.

• Optoelectronics revenue rose 5% YoY to NT$7.2 billion; ITC revenue fell 5% YoY to NT$13.3 billion.

• Net cash position at NT$54.6 billion, down NT$3.3 billion QoQ due to CapEx and M&A.

Outlook and guidance

• Q2 revenue and profit expected to exceed Q1, driven by new AI power products and satellite power demand.

• Mass production of 110 kW power shelf to begin in June; 800 VDC 1.5 MW power rack qualification in Q3, with shipments pulled forward to Q4.

• AI-related revenue targeted to reach 30% of total revenue.

• Cloud computing revenue growth expected to exceed 70% YoY in 2026, but slow in 2027.

• Company preparing for potential overseas depositary receipt issuance or private placement of up to 200 million shares.