WPG (TWSE:3702) Reports Record-High Q1 2026 Revenue, Operating Income, Net Income and EPS, with Triple Margin Expansion Driving Continued Momentum
WPG (TWSE:3702) Reports Record-High Q1 2026 Revenue, Operating Income, Net Income and EPS, with Triple Margin Expansion Driving Continued Momentum
2026/05/12
WPG achieved record highs in revenue, operating income, net income, and EPS in the first quarter of 2026, all surpassing the upper end of its financial guidance. First-quarter revenue reached NT$316.5 billion, up 23.9% quarter-over-quarter and 27.2% year-over-year. Driven by steady shipment growth and continued optimization of the product mix, operating income reached NT$8.471 billion, up 56% quarter-over-quarter and 97.7% year-over-year. The operating margin improved to 2.68%, reflecting simultaneous gains in operational scale and efficiency. Supported by expanding core business momentum, quarterly net income exceeded NT$5 billion for the first time, reaching NT$5.549 billion, up 95.2% quarter-over-quarter and 192.3% year-over-year. Net margin rose to 1.75%, and EPS was NT$3.3.
Return on equity (ROE) and return on working capital (ROWC) for Q1 reached 25.7% and 15.2%, respectively, demonstrating that the company continues to maintain strong capital efficiency and a solid financial structure while expanding its business scale.
These strong results were primarily driven by the continued evolution of the AI boom, which has significantly increased demand for AI infrastructure among cloud service providers and enterprise customers. This, in turn, boosted demand for AI servers, general-purpose servers, high-performance storage, high-speed interconnects, memory, power management, and networking components.
For 2026 Second quarter, market demand is expected to remain strong. Based on an exchange rate assumption of NT$31.6 to the U.S. dollar, WPG forecasts revenue of NT$345 billion to NT$365 billion, gross margin of 4.25% to 4.45%, operating margin of 2.51% to 2.64%, net income of NT$6.147 billion to NT$6.824 billion, EPS of NT$3.65 to NT$4.06.
WPG Holdings will provide a detailed explanation of its Q1 2026 results and Q2 2026 outlook in its investor conference on May 19, 2026.
Table: WPG Holdings Ltd. Consolidated Financial Statements for the three months ended March 31, 2026 (In brief)
Units：NT$million
|
Income Statement (three months ended March 31, 2026) |
|
Balance Sheet (March 31, 2026) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
316,500 |
|
Current Assets |
434,756 |
|
Cost of Goods Sold |
(302,297) |
|
Accounts receivables |
214,794 |
|
Gross Profit |
14,203 |
|
Inventories |
170,891 |
|
Operating Expenses |
(5,733) |
|
Other assets |
44,752 |
|
Operating income |
8,471 |
|
Total Assets |
479,508 |
|
Non-op Expenses |
(1,265) |
|
Current Liabilities |
351,740 |
|
Profit Before Tax |
7,206 |
|
Current Borrowing |
152,979 |
|
Tax |
(1,455) |
|
Accounts payables |
163,190 |
|
Minority & Others |
(202) |
|
LT Liabilities |
31,067 |
|
Profit After tax |
5,549 |
|
Total Liabilities |
386,867 |
|
EPS - Common Stock (Note1) |
3.30 |
|
Common Stock |
16,791 |
|
Note1：Based on weighted average outstanding shares. |
|
Total Equity |
92,641 |
|
|
Cash Flow Statement (three months ended March 31, 2026) |
|
|
Item |
Amount |
|
Income before Income Tax |
7,206 |
|
Change in NWC |
(34,099) |
|
Operating cash inflow /(outflow) |
(39,712) |
|
Investment cash inflow /(outflow) |
4,084 |
|
Change in Financial Debt |
33,511 |
|
Financing cash inflow /(outflow) |
36,434 |
|
Cumulative translation adjustments |
1,842 |
|
Net Cash |
2,648 |
|
Beginning cash balance |
22,356 |
|
Ending cash balance |
25,004 |
IR contacts：Cliff Yuan/ Zoe Peng
Tel：886-2-2191-0068 ext.85268/ext.85262
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com