MediaTek (2454) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue was NT$149,151 million, down 0.7% sequentially and 2.7% year-over-year.

• Net income reached NT$24,376 million, up 5.6% sequentially but down 14.4% to 17.4% year-over-year.

• Operating income increased 4.8% sequentially to NT$22,891 million, but declined 23.8% year-over-year.

• EPS was NT$15.17, up from NT$14.39 last quarter, down from NT$18.43 a year ago.

• Revenue reached the high end of guidance, supported by steady demand across diversified platforms and favorable FX rates.

Financial highlights

• Gross margin was 46.3%, up 0.2 percentage points sequentially, down 1.8 points year-over-year.

• Operating margin was 15.3%, up 0.8 points sequentially, down 4.3 points year-over-year.

• Net profit margin was 16.3%, up 0.9 points sequentially, down 3 points year-over-year.

• R&D expenses accounted for 25.7% of revenue, slightly lower sequentially but higher year-over-year.

• Non-T-IFRS operating margin was 15.8%; non-T-IFRS net profit margin was 16.7%.

Outlook and guidance

• Q2 revenue expected between TWD 140.2 billion and TWD 149.2 billion, flat to down 6% sequentially, down 1%-7% year-over-year.

• Gross margin forecasted at 46% ± 1.5 percentage points; OpEx ratio at 31% ± 2 points.

• Full-year revenue expected to grow mid to high single-digit percentage in USD year-over-year.

• Full-year gross margin targeted to remain within current quarter guidance range.

• Management highlighted risks from competitive pricing, supply-demand shifts, and global economic conditions.