Novatek Microelectronics (3034) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was TWD 23.15 billion (NT$23,145 million), up 1.4% quarter-over-quarter but down 14.7% year-over-year, driven by SoC and large display driver ICs despite weak smartphone demand.

• Net income for Q1 2026 was TWD 3.77 billion (NT$3,767 million), up 2.1% quarter-over-quarter but down 28.4% year-over-year.

• EPS for Q1 2026 was TWD 6.19, compared to TWD 8.65 in Q1 2025 and TWD 6.07 in Q4 2025.

• SoC business accounted for 44% of Q1 revenue, a historical high, while small/medium drivers declined to 33% and large drivers rose to 23%.

Financial highlights

• Q1 consolidated sales: TWD 23.15 billion (+1.4% QoQ, -14.7% YoY).

• Gross profit: TWD 9.04 billion (+3.8% QoQ, -16.2% YoY); gross margin: 39.06% (+87 bps QoQ, -70 bps YoY).

• Operating income: TWD 4.03 billion (+4.3% QoQ, -29.3% YoY); operating margin: 17.4%.

• EPS: TWD 6.19 (+0.12 QoQ, -2.46 YoY).

• Cash and cash equivalents increased to TWD 48.92 billion (+15.32% QoQ, -8.10% YoY).

Outlook and guidance

• Q2 2026 revenue projected at TWD 27.5–28.5 billion, up 19–23% quarter-over-quarter.

• Q2 gross margin guidance: 38–41%; operating margin: 16–19%.

• All three major product lines expected to deliver meaningful quarterly growth in Q2, with SoC leading.

• Full-year revenue expected to grow year-over-year, supported by new product launches in high-end applications.

• Management noted adoption of new IFRS standards had no material impact.