Pegatron (4938) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q2026 was NT$244.1Bn, down 10.4% year-over-year and 23.6% sequentially from 4Q2025, reflecting seasonal weakness and softer demand in key segments.

• Net income attributable to the parent was NT$1.56Bn, a 63.7% decrease year-over-year and 70.4% decline sequentially.

• EPS for 1Q2026 was NT$0.58, down from NT$1.62 in 1Q2025 and NT$1.97 in 4Q2025.

Financial highlights

• Gross margin improved to 4.4% in 1Q2026 from 3.7% in 1Q2025, but operating margin remained low at 1.2%.

• Operating income rose 13.9% year-over-year to NT$2.83Bn, but fell 36.2% sequentially.

• Net non-operating income dropped sharply to NT$636Mn from NT$4.19Bn a year ago.

• Cash and equivalents at quarter-end were NT$112.3Bn, down from NT$119.9Bn a year ago.

• Cash flow from operating activities was NT$1.69Bn, a significant improvement from negative NT$14.67Bn in 1Q2025.

Outlook and guidance

• Management cited seasonality and weaker demand in Consumer Electronics and Communication as key factors for revenue decline.

• Revenue expected to remain under pressure due to ongoing softness in major segments.