Winbond Electronics (2344) Q1 2026 earnings summary

Executive summary

• Net sales in 1Q26 reached NT$38,253M, up 43.7% QoQ and 91.3% YoY, with significant margin expansion and a return to strong profitability.

• Memory business drove growth, with CMS revenue up 93% QoQ and 276% YoY, and Flash revenue up 23% QoQ and 89% YoY.

• Operating profit surged to NT$12,550M, with net income at NT$10,118M, reflecting robust demand and improved product mix.

Financial highlights

• Gross margin improved to 53.4% (up 11 ppts QoQ, 27 ppts YoY); operating margin rose to 32.8% (up 17 ppts QoQ, 37 ppts YoY).

• EBITDA for 1Q26 was NT$16,127M, more than doubling YoY.

• Free cash flow reached NT$9,450M, with cash and equivalents at NT$25,521M as of March 31, 2026.

• Book value per share increased to NT$25.92.

Outlook and guidance

• Tight supply and strong demand for high-density NOR and SLC NAND expected to sustain favorable pricing into 1H26 and beyond.

• DDR4/LPDDR4 supply gap projected through 2028, supporting constructive pricing outlook for 2H26–2027.

• Capacity expansion is ahead of plan, with AI-driven demand shaping product and customer mix.

• CUBE development on track for meaningful revenue in 2027.