Quanta Computer (2382) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of NT$504,122 million, up 3.8% sequentially and 62.7% year-over-year, driven by robust AI server and notebook demand.

• Net income for Q2 2025 was NT$16,861 million, down 13.5% sequentially but up 11.8% year-over-year; EPS for the quarter was NT$4.34.

• For H1 2025, net sales totaled NT$989,794 million, up 74% year-over-year; net income after tax was NT$36,359 million, up 33.8%; EPS for H1 was NT$9.43.

• AI server shipments and revenue remain strong, with a transition underway from GB200 to GB300 platforms.

• Board approved major investments in U.S. and Mexico to expand AI server capacity and in quantum computing.

Financial highlights

• Gross profit for Q2 2025 was NT$35,533 million, down 7.7% sequentially but up 33.6% year-over-year; gross margin at 7.05%.

• Operating profit for Q2 2025 reached NT$20,403 million, down 17% sequentially but up 34.2% year-over-year; operating margin at 4.05%.

• Non-operating income was NT$1.2 billion, with significant FX and interest expenses.

• Cash and short-term investments stood at NT$194,105 million as of June 30, 2025, down from NT$214,604 million at March 31, 2025.

• Inventory at a record NT$286 billion due to AI project ramp.

Outlook and guidance

• AI server sales expected to maintain Q2 pace in Q3, with GB300 platform ramping up.

• General compute servers returning to healthy growth; notebook shipments stable with low single-digit sequential growth expected in Q3.

• Full-year guidance maintained for single-digit YoY growth in notebooks.

• Margin pressure anticipated in Q3 due to product mix shift and residual FX volatility.

• Board approved the fifth issuance of unsecured overseas convertible bonds (up to USD 1 billion) to support material procurement in foreign currencies.