Winbond Electronics (2344) Q1 2026 earnings summary

Executive summary

• Net sales in Q1 2026 reached NT$38.25 billion, up 91.3% YoY and 43.7% QoQ, with significant margin expansion and a return to strong profitability, reversing a net loss in Q1 2025.

• Memory business drove growth, with CMS revenue up 93% QoQ and 276% YoY, and Flash revenue up 23% QoQ and 89% YoY.

• Operating profit surged to NT$12.55 billion, with net income at NT$10.12 billion, reflecting robust demand and improved product mix.

• Gross margin improved to 53.4% (up 11 ppts QoQ, 27 ppts YoY), driven by higher sales and reversal of inventory write-downs.

• Earnings per share reached NT$2.25, compared to a loss per share of NT$0.24 in Q1 2025.

Financial highlights

• EBITDA for Q1 2026 was NT$16.13 billion, more than doubling YoY.

• Free cash flow reached NT$9.45 billion, with cash and equivalents at NT$25.52 billion as of March 31, 2026.

• Total assets rose to NT$229.81 billion, with equity attributable to owners at NT$116.65 billion.

• Net cash from operating activities was NT$12.37 billion, up sharply from NT$393 million year-over-year.

• Book value per share increased to NT$25.92.

Outlook and guidance

• Tight supply and strong demand for high-density NOR and SLC NAND expected to sustain favorable pricing into 1H26 and beyond.

• DDR4/LPDDR4 supply gap projected through 2028, supporting constructive pricing outlook for 2H26–2027.

• Capacity expansion is ahead of plan, with AI-driven demand shaping product and customer mix.

• CUBE development on track for meaningful revenue in 2027.

• The company resolved a cash dividend of NT$0.5 per share for 2025, pending shareholder approval.