ASUS (2357) Q2 2026 earnings summary

Executive summary

• Achieved record highs in consolidated revenue (TWD 241B, +39% YoY), operating profit (TWD 19.6B, +230% YoY), and net profit after tax (TWD 19B, +94% YoY) for Q2 2026, driven by strong AI server and PC business momentum.

• PC business grew 20% YoY, with commercial PC shipments up over 50% YoY for six consecutive quarters, making it the only major Windows PC brand with positive shipment growth.

• Server business revenue doubled YoY, with the full-year server growth target raised from 100% to 150%.

• High-value products (gaming, Copilot+ PCs, non-Chromebook convertibles) now account for over 65% of product mix, supporting operational resilience.

• Continued innovation in AI, infrastructure, and gaming, with notable product launches and industry recognition.

Financial highlights

• Q2 2026 revenue: TWD 241B (+39% YoY); operating profit: TWD 19.6B (+230% YoY); net profit after tax: TWD 19B (+94% YoY); EPS: TWD 25.6.

• Gross profit rose to TWD 39.86B, up 85% YoY; gross margin improved to 16.5%, and operating margin to 8.1%.

• Non-operating income: TWD 5B, flat YoY; cash and equivalents: TWD 70.9B; inventories: TWD 339.9B (strategic stockpiling for H2 demand).

• Shareholders' equity: TWD 301.3B; total assets: TWD 803.3B.

• Average days of inventory at 154, days of AR at 66, days of AP at 87, and cash conversion cycle at 132 days.

Outlook and guidance

• Q3 2026: PC revenue projected to grow 15%-20% QoQ (split evenly between ASP and volume); components 5%-10%; servers 10%-15%.

• Full-year global PC shipments expected to decline ~4% YoY, with H2 decline exceeding 10%.

• Server segment growth target revised to at least 150% YoY for 2026; strong order visibility and diversified customer base.

• Profitability expected to remain above 4%-5% operating margin baseline in Q3.