Phison Electronics (8299) Q2 2026 earnings summary

Executive summary

• Achieved record-high Q2 2026 revenue of NT$67.89 billion and first-half revenue of NT$108.86 billion, with net profit surging to NT$41.39 billion for the first half.

• Underwent transformation from cyclical storage to AI infrastructure, expanding from NAND controllers to integrated AI storage platforms and enterprise solutions.

• AI ecosystem solutions accounted for 38% of Q2 revenue, with 68–78% QoQ growth, reflecting strong enterprise and AI demand.

• Embedded segment (PC OEM, gaming, security, mobile) contributed 33% of Q2 revenue, more than doubling QoQ.

• Sustained R&D investment and technology leadership to drive differentiation and long-term shareholder value.

Financial highlights

• Q2 2026 revenue reached NT$67.89 billion, up 65.7% QoQ and 279.5% YoY, with gross margin at a record 65.3%.

• Net profit for the first half of 2026 was NT$41.39 billion, with basic EPS at NT$187.43.

• Operating profit for Q2 2026 was NT$26.37 billion, up 77.7% QoQ and 1,024% YoY.

• R&D investment in Q2 was nearly 7x higher YoY, with first-half R&D spend at NT$24 billion.

• Cash and current financial assets at fair value increased to NT$33.8 billion in Q2 2026.

Outlook and guidance

• AI and enterprise demand expected to remain strong, with continued supply constraints for NAND flash anticipated for several years.

• Proven business model in Taiwan is being replicated in North America, Southeast Asia, and India for global expansion in 2H26.

• R&D investment will remain elevated to support new product development and maintain technology leadership.

• Adoption of new IFRS standards is not expected to have a significant impact on future financial statements.