MediaTek (2454) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10.4% QoQ and 18.3% YoY to NT$168,058 million, exceeding guidance as demand strengthened and supply improved; AI accelerator shipments began in September.

• Growth outlook strengthened on AI infrastructure and edge computing; FY revenue growth is expected to exceed the prior high-single-digit target in U.S. dollars.

Financial highlights

• Gross profit was NT$77,848 million, up 10.7% QoQ and 17.8% YoY; gross margin was 46.3%, up 0.1 ppt QoQ and down 0.2 ppt YoY.

• Operating expenses were NT$50,746 million, versus NT$47.4B in Q2 and NT$43.9B a year earlier; operating income was NT$27,102 million, up 18.5% QoQ and 22.2% YoY.

• Net income was NT$28,199 million, up 14.6% QoQ and 10.8% YoY; EPS was NT$17.50 versus NT$15.28 in Q2 and NT$15.84 a year earlier.

• Net non-operating income was NT$6,471 million and income tax expense was NT$5,374 million.

Outlook and guidance

• Q4 revenue forecast: NT$210.1B–NT$221.8B, up 25%–32% QoQ and 40%–48% YoY; forecast exchange rate is NT$31.7/$1.

• Q4 gross margin forecast is 45%, ±1.5 ppts; operating expense ratio is forecast at 26%, ±2 ppts.

• First AI accelerator is expected to generate $2.5B revenue in Q4; the 2027 target is the high end of ~$16B, or ~20% of the AI accelerator ASIC market.

• FY 2027 operating margin is expected above 20%; Q4 is the starting point for improvement as revenue mix shifts toward higher-operating-margin data center business.

• Second accelerator is on track for Q1 2028 high-volume production; a second customer project is underway, with revenue expected in 2028.