Nanya Technology (2408) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached TWD 82.549 billion, up 68.2% quarter-over-quarter and 684.2% year-over-year, driven mainly by a 60%+ ASP increase while shipment volume remained flat sequentially.

• Gross profit rose to TWD 65.619 billion with a margin of 79.5%, and net income was TWD 50.192 billion, net margin 60.8%. EPS for Q2 was TWD 14.66, and book value per share increased to TWD 93.49.

• Operating income was TWD 60.826 billion, with a margin of 73.7%. Operating expenses increased due to higher employee profit sharing and R&D costs.

• Cash and equivalents at quarter-end were TWD 198.4 billion, significantly up from TWD 68.5 billion in Q1, mainly due to strong operating cash flow and a private placement.

• Operational results are expected to further improve in Q3 2026, with sustained profitability projected for the coming quarters.

Financial highlights

• Q2 revenue up 68.2% quarter-over-quarter and 684.2% year-over-year, mainly from ASP growth.

• Gross margin improved to 79.5% from 67.9% in Q1; net margin rose to 60.8% from 53.1%.

• Operating expenses increased by TWD 1.6 billion, mainly due to employee profit sharing and R&D.

• Free cash flow for Q2 was TWD 50.967 billion; ending cash balance TWD 216.757 billion.

• First half 2026 net profit: TWD 76.25 billion; EPS: TWD 23.38.

Outlook and guidance

• Q3 operational results expected to continue improving, with sustainability anticipated in coming quarters.

• Operating margin expected to remain high, with further improvement in Q3; Q4 outlook stable barring major market changes.

• Shipment for the full year expected to increase by high teens percentage; low inventory levels maintained.