FIT Hon Teng (6088) investor relations material

Executive summary

• Revenue for Q1 FY2026 grew 8.6% year-over-year to $1.2 billion, driven by AI server market expansion and new connectivity solutions.

• Gross profit increased 13.2% year-over-year to $243 million, with gross margin up 83 basis points to 20%.

• Operating income surged nearly 90% year-over-year to $38 million, aided by efficiency improvements and lower OPEX ratio.

• Net income rose 67% year-over-year, though partially offset by foreign exchange headwinds.

• Unaudited consolidated financial results for the three months ended March 31, 2026, were released to comply with disclosure requirements in both Hong Kong and Taiwan.

Financial highlights

• Cloud data center revenue grew 58% year-over-year in Q1, with AI server-related revenue up 109%.

• General-purpose server business grew 30% year-over-year, outperforming the broader market.

• Revenue and other operating revenue reached US$1,197.9 million, up from US$1,102.9 million year-over-year.

• Net profit from continuing operations was US$10.4 million, compared to US$6.2 million for the same period last year.

• Consumer interconnect segment declined 12% year-over-year due to memory constraints.

Outlook and guidance

• Full-year and Q2 guidance maintained for stable smartphone segment revenue.

• Cloud data center revenue expected to increase mid-40% year-over-year in Q2 and mid-70% for the full year.

• Consumer interconnect revenue outlook lowered to a high-teens decline for Q2 and low single-digit decline for the year.

• Automobility segment forecast revised from mid-teens growth to flat for Q2 and full year.

• System product segment expected to deliver low teen growth in Q2 and full year.