MediaTek (2454) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue was NT$149.2 billion, down 0.7% sequentially and 2.7% year-over-year, reaching the high end of guidance with steady demand across diversified platforms and favorable FX rates.

• Net income was NT$24.4 billion, up 5.6% sequentially but down 17.7% year-over-year.

• Operating income was NT$22.9 billion, up 4.8% sequentially, down 23.8% year-over-year.

• EPS was NT$15.17, up from NT$14.39 last quarter, down from NT$18.43 a year ago.

• Rapid adoption of agentic AI and compute-intensive workloads is driving structural growth in both edge and cloud markets.

Financial highlights

• Gross margin was 46.3%, up 0.2 percentage points sequentially, down 1.8 points year-over-year.

• Operating margin was 15.3%, up 0.8 points sequentially, down 4.3 points year-over-year.

• Net profit margin was 16.3%, up 0.9 points sequentially, down 3 points year-over-year.

• R&D expenses accounted for 25.7% of revenue, slightly lower sequentially but higher year-over-year.

• Cash and cash equivalents at March 31, 2026 were NT$184.51 billion, down from NT$195.69 billion a year earlier.

Outlook and guidance

• Q2 revenue expected between NT$140.2 billion and NT$149.2 billion, flat to down 6% sequentially, down 1%-7% year-over-year.

• Gross margin forecasted at 46% ± 1.5 percentage points; OpEx ratio at 31% ± 2 points.

• Full-year revenue expected to grow mid to high single-digit percentage in USD year-over-year.

• The company expects to recognize NT$14.43 billion in service revenue within 1–2 years.

• Management highlighted risks from competitive pricing, supply-demand shifts, and global economic conditions.