Phison Electronics (8299) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached NT$40.967 billion, an all-time high, with gross profit at NT$25.118 billion and EPS at NT$68.80, driven by AI ecosystem modules contributing 38% of revenue and robust flash memory sales in Asia and America.

• Gross margin improved to 62% from 31% YoY, reflecting strong operational leverage and cost control.

• Heavy R&D investment and a large engineering workforce support innovation, business transformation, and future growth.

• Inventory levels increased 200% QoQ to secure supply for future demand, especially for AI and enterprise customers.

Financial highlights

• Gross margin reached 61.3%–62%, an all-time high, despite a 1.5% inventory write-off for conservatism.

• Basic EPS for Q1 2026 was NT$68.80, with NT$10–10.65 per share from investment and JV returns.

• April 2026 revenue set a new monthly record at NT$20.207 billion, with fulfillment rates at 30–35% due to supply constraints.

• Operating profit margin rose to 36.2%, and net profit margin to 37% in Q1 2026.

• ASP increases drove much of the 80% QoQ revenue growth, especially in enterprise SSDs.

Outlook and guidance

• AI ecosystem modules and solutions are expected to become the largest revenue contributor, with ongoing supply constraints anticipated.

• Monthly revenue of NT$20 billion is seen as a new baseline, with higher levels possible as inventory is managed for Q4 demand.

• Ongoing investments in advanced nodes, AI storage, and talent are aimed at sustaining long-term revenue and profitability growth.

• The company is planning to issue its first overseas unsecured convertible bonds up to USD 800 million to support foreign currency procurement.

• Acquisition of new land and buildings in Miaoli County for NT$2,050,000 thousand to support long-term operational growth.