ASUS (2357) Q3 2025 earnings summary

Executive summary

• Achieved record-high Q3 2025 revenue of NT$189,907 million, up 21% year-over-year, driven by strong enterprise, server, and commercial PC segments.

• Net income for Q3 2025 reached NT$10,556 million, with EPS at NT$14.20; gross margin improved to 12.9% sequentially.

• Business mix balanced across gaming (41%), consumer (29%), and enterprise (30%), with enterprise segment doubling year-over-year.

• AI server revenue surged, now close to 20% of total revenue, with shipments proceeding smoothly.

• For the nine months ended September 30, 2025, consolidated revenue was NT$535,980,845 thousand, and net income attributable to shareholders was NT$33,152,502 thousand.

Financial highlights

• Operating income for Q3 2025 was NT$8.4 billion; cash and cash equivalents stood at NT$62 billion at quarter-end.

• Inventory turnover averaged 98 days; cash conversion cycle at 102 days, both stable sequentially.

• Systems business unit contributed 53% of revenue, open platform 45%, IoT 2%.

• Regional revenue: Asia 46%, Europe 32%, Americas 22%.

• Graphics card revenue grew over 30% year-on-year; RTX 50 Series now over 80% of product mix.

Outlook and guidance

• Q4 2025 PC shipments expected to decline 10%-15% quarter-over-quarter, but remain flat year-on-year.

• Components and servers to fall 5%-10% quarter-on-quarter, but grow 40%-50% year-on-year.

• Full-year revenue growth expected, with strong momentum in AI, gaming, and commercial segments.

• AI PC shipments projected to exceed 20% of total in 2026 (Copilot+ definition), or 50%-60% (broader definition).

• Operating margin targeted at 4%-5% long-term, with tariff impact seen as manageable.