Pegatron announced its first-quarter 2026 financial results on May 13, with profit down more than 60% compared with the same period a year earlier, while earnings per share (EPS) hit its lowest level for the same period in nearly seven years.
Off-season drag weighs on revenue
Due to the traditional off-season and weak demand for consumer electronics and communications products, consolidated revenue for the first quarter fell to NT$244.11 billion (approx. US$7.75 billion), down 70.4% sequentially and 10.4% year over year. Gross margin was 4.42%, up 0.34% from the previous quarter and 0.69% from a year earlier.
First-quarter profit after tax totaled NT$1.56 billion, down 70.36% sequentially and 63.72% year over year. EPS came in at NT$0.58, a sharp decline of 70.6% from NT$1.97 in the previous quarter and down 64.2% from NT$1.62 in the same period of 2025.
IT products hold up; consumer and comms lag
Among the company's three major product segments, information technology products posted year-over-year revenue growth, supported by strong demand for desktop computers and servers. In contrast, weaker demand for consumer electronics and communications products led to double-digit year-over-year revenue declines across both segments in the first quarter of 2026.
AI PCs, new projects to fuel a 2Q26 rebound
Pegatron's management had previously forecast that PC and notebook shipments would experience a double-digit sequential decline in the first quarter of 2026, affected by the traditional off-season. The company now expects a recovery in the second quarter of 2026, driven by demand for artificial intelligence (AI) PCs, with the potential for quarter-over-quarter growth. Its consumer electronics business is also expected to grow in the second quarter of 2026 as new projects launch and demand improves in some markets.
Article translated by Eifeh Strom and edited by Jerry Chen
