AUO (2409) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was TWD 69.031 billion, down 1.6% QoQ and 4.3% YoY, with a 2% forex benefit from NT dollar depreciation.

• Gross margin improved to 11.9% from 10.7% in Q4 2025, driven by forex, higher TV panel prices, and product mix optimization.

• Operating profit margin was -0.9%, with an OP loss of TWD 600–636 million, narrowing QoQ.

• Net loss attributable to owners was TWD 1.14 billion, reversing a profit in Q4 2025; EPS was negative TWD 0.15.

• Transformation continues from consumer panels to system and solutions provider, focusing on value creation.

Financial highlights

• Gross profit for Q1 2026 was TWD 8.183 billion, up 8.8% QoQ but down YoY.

• Operating expenses decreased 6.4% QoQ to TWD 8.819 billion.

• EBITDA was TWD 6.6 billion (margin 9.6%).

• Cash and cash equivalents at quarter-end were TWD 53.064 billion, down 4.6% QoQ and 21.3% YoY.

• Borrowings: TWD 104.9 billion, down TWD 4.1 billion QoQ; short-term borrowings rose YoY.

Outlook and guidance

• Q2 Mobility Solutions revenue expected to grow low to mid-single digits QoQ.

• Q2 Vertical Solutions revenue to grow high single digits QoQ, driven by new projects and green solutions.

• Q2 Display revenue expected to decrease slightly due to softer consumer electronics demand.

• Cautious view for H2 2026 due to geopolitical risks, energy/inflation uncertainties, and lower order visibility.