Realtek Semiconductor (2379) Q3 2026 earnings summary

Executive summary

• Q3 revenue was NT$37,731.811M, up 27.9% YoY and 0.5% QoQ; operating income rose 33.1% YoY to NT$4,144.190M.

• Q3 net income was NT$4,126.285M, up 20.3% YoY; EPS was NT$8.05 versus NT$6.69 in Q3 2025.

• 9M revenue reached NT$111,707.580M and net income was NT$12,261.407M, compared with NT$96,427.898M and NT$12,099.449M, respectively, a year earlier.

• The interim review was qualified because certain subsidiaries and equity-method investees were not independently reviewed; the qualification covered 7.01% of consolidated assets at September 30, 2026.

Financial highlights

• Q3 gross profit was NT$17,902.585M, up 22.2% YoY and 1.4% QoQ.

• Operating expenses were NT$13,758M, up 19.2% YoY and down 1.2% QoQ; R&D expense was NT$10,082M.

• Operating profit was NT$4,144M; the 11.0% operating margin rose 0.4pp YoY and 1.1pp QoQ.

• Net non-operating income was NT$606M, down 34.9% YoY and 6.0% QoQ, mainly due to FX and financial-asset valuation losses.

• 9M operating costs rose to NT$58,066.585M from NT$47,689.698M; inventory obsolescence and market-value allowances were a NT$534.318M expense versus a NT$520.081M reversal.

Outlook and guidance

• Q4 order momentum remained stable; seasonality may not bring the usual revenue slowdown, supported by mix and pricing, while PC demand is expected to weaken further.

• 2027 top-line growth is expected to remain steady, driven by higher ASPs, specification upgrades and new products; Wi-Fi 7, multi-gigabit Ethernet and 10G PON should improve mix.

• Gross margin is expected to recover gradually in H2 2026; 2027 pricing will be measured amid changing foundry and OSAT costs, with focus on stable profitability and growth.

• OpEx ratio is expected to remain broadly stable near term; over time, revenue is expected to grow faster than operating expenses as higher-value solutions expand.