Powertech Technology (6239) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue reached NT$21.31 billion, up 37.6% year-over-year, with net income at NT$2.39 billion, both hitting multi-year highs.

• Gross margin improved to 19.4%, and EPS was NT$2.50, both marking three-year first-quarter highs.

• Growth was driven by strong demand in DRAM, NAND, and logic segments, with eSSD and AI-related applications contributing significantly.

• All key profitability margins improved both year-over-year and quarter-over-quarter.

Financial highlights

• Net income for 1Q26 was NT$2,387M, up 51.3% year-over-year and 2.4% sequentially.

• Gross profit increased to NT$4,144M, with gross margin rising to 19.4% (+2.3ppts YoY, +0.8ppts QoQ).

• Operating income rose to NT$2,761M, with operating margin at 13.0% (+3.0ppts YoY, +0.4ppts QoQ).

• Net worth per share as of March 31, 2026, was NT$76.58.

• Cash and cash equivalents at quarter-end were NT$16,023M.

Outlook and guidance

• Memory market remains robust, with strong HBM demand driven by AI applications.

• DRAM and NAND backend demand expected to grow in 2Q26, supported by AI, HPC, and new smartphone launches.

• Logic packaging to benefit from high-end FC_BGA demand and product mix optimization, supporting gross profit.

• Price adjustments and cost pass-throughs are expected to support margins amid rising material costs.

• Continued growth in semiconductor packaging and testing demand, supported by robust order flows and strategic investments.