Yageo (2327) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q2026 reached NT$44,456 million, up 16.5% sequentially and 35.7% year-over-year, with broad-based growth across products, segments, regions, and channels.

• Net profit after tax attributable to the parent was NT$9,418 million, up 17.7% quarter-over-quarter, with EPS of NT$4.59.

• Growth was driven by strong momentum in AI-related applications, favorable product mix, and rapid expansion in specialty products.

• 1H2026 net sales totaled NT$82,622 million, up 29.3% year-over-year, with net income up 65.5% year-over-year and EPS NT$8.48.

Financial highlights

• 2Q2026 gross margin was 38.5% (+0.4ppts QoQ, +2.9ppts YoY); operating margin 26.4% (+1.2ppts QoQ, +4.9ppts YoY); EBITDA margin 32.3% (+0.5ppts QoQ, +4.1ppts YoY).

• 2Q2026 gross profit was NT$17,116 million, up 17.7% QoQ and 46.9% YoY; operating income NT$11,749 million, up 22.2% QoQ and 66.8% YoY.

• Non-operating items contributed NT$474 million, mainly from net interest income, equity-method investment income, and foreign exchange gains.

• 1H2026 gross margin was 38.3% (+2.7ppts YoY); operating margin 25.9% (+4.7ppts YoY); EBITDA margin 32.1% (+4.0ppts YoY).

• 1H2026 net income was NT$17,419 million (+65.5% YoY); EPS NT$8.48 (+65.4% YoY).

Outlook and guidance

• Positive customer sentiment and outlook for 2H2026, with AI content demand expected to continue driving growth.

• Electronic components industry is undergoing structural transformation driven by AI demand.

• Company remains cautious amid geopolitical uncertainties and will closely monitor tariffs and exchange rates.