Pegatron's Q1 EPS Hits 7-Year Low for the Same Period at NT$0.58
Contract manufacturer Pegatron today announced its Q1 2026 financial results. Despite an improved gross margin, net profit attributable to the parent company was approximately NT$1.561 billion, with an EPS of NT$0.58, a 7-year low for the period, due to the off-season for communication and consumer electronics and a sharp decline in non-operating income.
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- 📰 Published: May 13, 2026 at 19:15
- 🔍 Collected: May 13, 2026 at 19:32 (16 min after Published)
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Taipei, May 13 (CNA) - Contract manufacturer Pegatron today announced its Q1 2026 financial report. Despite an increase in gross margin to 4.4%, due to the off-season and weak demand for communication and consumer electronics products, as well as a sharp decline in non-operating income, the net profit attributable to the parent company was approximately NT$1.561 billion, a decrease of 70.4% quarterly and 63.7% annually. Earnings per share (EPS) were NT$0.58, a new low for the same period in nearly 7 years.
Pegatron's consolidated revenue for the first quarter of this year was approximately NT$244.105 billion, a decrease of 23.6% quarterly and 10.4% annually. Operating income was about NT$2.829 billion, down 36.2% quarterly but up 13.9% annually. Non-operating income was about NT$636 million, a decrease of 85.6% quarterly and 84.8% annually, mainly due to the one-time income from the disposal of a joint venture stake in China recognized in the fourth quarter of last year, and higher government subsidies received in the first quarter of last year.
In terms of profitability, Pegatron's gross margin for the first quarter was 4.4%, up 0.3 percentage points quarterly and 0.7 percentage points annually. The operating margin was 1.2%, down 0.2 percentage points quarterly but up 0.3 percentage points annually.
Looking at the product mix, communication products accounted for the largest share of Pegatron's Q1 revenue at 60%, followed by information products at 14%, consumer electronics at 5%, and other products at 21%.
Pegatron stated that revenue from information products in the first quarter increased by 19% annually, mainly due to strong demand for desktop computers and servers. Revenues from consumer electronics and communication products decreased by 28% and 17% annually, respectively, due to weakening demand.
Pegatron will hold its annual general meeting on May 28. According to the recently released business report, Pegatron expects that with continuous breakthroughs and innovations in the field of artificial intelligence (AI), the demand for related software, hardware, and infrastructure will increase. The company anticipates showing good growth momentum in its server, automotive, and networking product lines in the coming years. (Editor: Huang Kuo-lun) 1150513
Pegatron's consolidated revenue for the first quarter of this year was approximately NT$244.105 billion, a decrease of 23.6% quarterly and 10.4% annually. Operating income was about NT$2.829 billion, down 36.2% quarterly but up 13.9% annually. Non-operating income was about NT$636 million, a decrease of 85.6% quarterly and 84.8% annually, mainly due to the one-time income from the disposal of a joint venture stake in China recognized in the fourth quarter of last year, and higher government subsidies received in the first quarter of last year.
In terms of profitability, Pegatron's gross margin for the first quarter was 4.4%, up 0.3 percentage points quarterly and 0.7 percentage points annually. The operating margin was 1.2%, down 0.2 percentage points quarterly but up 0.3 percentage points annually.
Looking at the product mix, communication products accounted for the largest share of Pegatron's Q1 revenue at 60%, followed by information products at 14%, consumer electronics at 5%, and other products at 21%.
Pegatron stated that revenue from information products in the first quarter increased by 19% annually, mainly due to strong demand for desktop computers and servers. Revenues from consumer electronics and communication products decreased by 28% and 17% annually, respectively, due to weakening demand.
Pegatron will hold its annual general meeting on May 28. According to the recently released business report, Pegatron expects that with continuous breakthroughs and innovations in the field of artificial intelligence (AI), the demand for related software, hardware, and infrastructure will increase. The company anticipates showing good growth momentum in its server, automotive, and networking product lines in the coming years. (Editor: Huang Kuo-lun) 1150513