Inventec's Q1 EPS Reaches 6-Year High of NT$0.68, Server Business to Exceed 50% of Revenue
Inventec's Q1 EPS reached a 6-year high of NT$0.68. Server revenue is expected to exceed 50% of total revenue this year, becoming the company's most important growth engine.
📋 Article Processing Timeline
- 📰 Published: May 12, 2026 at 17:09
- 🔍 Collected: May 12, 2026 at 17:32 (22 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 03:00 (9h 28m after Collected)
Central News Agency
(Central News Agency reporter Wu Chia-hao, Taipei 12th) Contract manufacturer Inventec held an investor conference today. Its Q1 revenue set a new quarterly high, with net profit attributable to the parent company reaching NT$2.428 billion, a 17% increase QoQ and 43% YoY; earnings per share (EPS) were NT$0.68, a new high for the same period in nearly 6 years. The management team is optimistic that server revenue will exceed 50% of total revenue this year, becoming the group's most important growth engine.
Inventec's consolidated revenue for Q1 this year reached NT$200.311 billion, a 17% increase QoQ and 28% YoY, setting a new historical high for a single quarter; operating profit was NT$3.615 billion, a 42% increase QoQ and 4% YoY; operating profit margin was 1.8%, an increase of 0.3 percentage points QoQ and a decrease of 0.4 percentage points YoY.
Inventec CFO You Jin-bao pointed out that the record-high Q1 revenue was mainly driven by rising prices of key components and earlier-than-expected customer demand. Despite increased expenses due to product mix and expansion of overseas production lines, overall profitability improved due to increased revenue scale and reduced interest expenses.
Regarding the most watched server business, Inventec General Manager Cai Zhi-an stated that both general-purpose servers and artificial intelligence (AI) servers are showing growth trends this year. Demand for general-purpose servers has rebounded, with large data center clients replenishing inventory; the momentum for AI servers continues.
In terms of AI server client distribution, Cai Zhi-an noted that Chinese clients currently account for over 50%, mainly through system assembly (L10) shipments; North American clients are mainly board-level (L6), and both board and system shipments are expected to increase simultaneously in the next two years.
For the personal computer (PC) business, Cai Zhi-an indicated that Q1 shipments exceeded expectations, Q2 is expected to remain flat, and a conservative outlook is held for H2. Although full-year PC shipments in 2026 may be flat or decline by a single digit, PC revenue will still maintain growth due to higher unit prices driven by rising component prices such as memory.
Looking ahead to Q2, Cai Zhi-an expects overall revenue to be better than Q1, with the server business continuing to grow and PC remaining stable. In terms of gross margin, Q2 is estimated to be similar to Q1, but with increased revenue scale, the operating profit margin will further improve.
To meet strong demand and global supply chain adjustments, Inventec's capital expenditure this year will exceed US$1 billion (approximately NT$31.53 billion), doubling last year's figure, mainly for expanding production sites and equipment in Taiwan, China, Thailand, Mexico, the United States, the Czech Republic, and Vietnam, including land and factory purchases.
In addition, Inventec is actively deploying new businesses. In smart devices, IoT communication modules will be the main growth driver this year, with new edge AI related product lines added next year; the automotive electronics business also performed brilliantly, with revenue expected to grow by at least double this year. (Editor: Lin Shu-yuan) 1150512
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(Central News Agency reporter Wu Chia-hao, Taipei 12th) Contract manufacturer Inventec held an investor conference today. Its Q1 revenue set a new quarterly high, with net profit attributable to the parent company reaching NT$2.428 billion, a 17% increase QoQ and 43% YoY; earnings per share (EPS) were NT$0.68, a new high for the same period in nearly 6 years. The management team is optimistic that server revenue will exceed 50% of total revenue this year, becoming the group's most important growth engine.
Inventec's consolidated revenue for Q1 this year reached NT$200.311 billion, a 17% increase QoQ and 28% YoY, setting a new historical high for a single quarter; operating profit was NT$3.615 billion, a 42% increase QoQ and 4% YoY; operating profit margin was 1.8%, an increase of 0.3 percentage points QoQ and a decrease of 0.4 percentage points YoY.
Inventec CFO You Jin-bao pointed out that the record-high Q1 revenue was mainly driven by rising prices of key components and earlier-than-expected customer demand. Despite increased expenses due to product mix and expansion of overseas production lines, overall profitability improved due to increased revenue scale and reduced interest expenses.
Regarding the most watched server business, Inventec General Manager Cai Zhi-an stated that both general-purpose servers and artificial intelligence (AI) servers are showing growth trends this year. Demand for general-purpose servers has rebounded, with large data center clients replenishing inventory; the momentum for AI servers continues.
In terms of AI server client distribution, Cai Zhi-an noted that Chinese clients currently account for over 50%, mainly through system assembly (L10) shipments; North American clients are mainly board-level (L6), and both board and system shipments are expected to increase simultaneously in the next two years.
For the personal computer (PC) business, Cai Zhi-an indicated that Q1 shipments exceeded expectations, Q2 is expected to remain flat, and a conservative outlook is held for H2. Although full-year PC shipments in 2026 may be flat or decline by a single digit, PC revenue will still maintain growth due to higher unit prices driven by rising component prices such as memory.
Looking ahead to Q2, Cai Zhi-an expects overall revenue to be better than Q1, with the server business continuing to grow and PC remaining stable. In terms of gross margin, Q2 is estimated to be similar to Q1, but with increased revenue scale, the operating profit margin will further improve.
To meet strong demand and global supply chain adjustments, Inventec's capital expenditure this year will exceed US$1 billion (approximately NT$31.53 billion), doubling last year's figure, mainly for expanding production sites and equipment in Taiwan, China, Thailand, Mexico, the United States, the Czech Republic, and Vietnam, including land and factory purchases.
In addition, Inventec is actively deploying new businesses. In smart devices, IoT communication modules will be the main growth driver this year, with new edge AI related product lines added next year; the automotive electronics business also performed brilliantly, with revenue expected to grow by at least double this year. (Editor: Lin Shu-yuan) 1150512
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
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The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.