ASUS (2357) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of TWD 174 billion (NT$174,018 million) in Q2 2025, up 29% quarter-on-quarter and 28% year-on-year, driven by strong growth in gaming, enterprise, and AI-related products, both exceeding 40% YoY growth.

• Gaming products accounted for 48% of revenue, up 40% YoY, and commercial/enterprise products rose 45% YoY, reflecting robust demand and successful new product launches.

• AI servers and AI PCs are key growth drivers, with AI servers now over 15% of server revenue and AI PCs holding a 25%+ market share.

• Focused on product cycle leadership, user engagement, and expanding enterprise client base.

• Consolidated financials for H1 2025 reviewed with a qualified conclusion due to unreviewed subsidiaries and equity-method investments.

Financial highlights

• Gross profit reached TWD 21.5 billion (NT$21,527 million), gross margin 12.4%, and operating income TWD 5.96 billion; operating margin 3.4%, impacted by tariffs and FX.

• Net income after tax was TWD 9.8 billion (NT$9,806 million); EPS TWD 13.2.

• Non-operating income totaled TWD 5.15 billion, including interest, investment, FX, and dividend income.

• Inventory turnover days improved to 101; cash conversion cycle at 104 days.

• For H1 2025, operating revenue was $335,699,473 thousand, net income $22,596,287 thousand, and basic EPS $30.42.

Outlook and guidance

• Q3 PC product revenue expected to grow 5%-10% quarter-on-quarter; components and servers to remain flat sequentially.

• Tariff and FX headwinds expected to ease within 1-2 quarters; operating margin target of 4%-5% remains.

• Management expects to leverage the TECHPOINT acquisition for market expansion and cost reduction.

• Continued focus on gaming, enterprise, and AI-driven solutions for future growth.