Compal Electronics (Compal; TAIEX: 2324) reported consolidated revenue of NT$238.295 billion for 2Q26, up 18% QoQ and 32% YoY, driven by growth in the PC and Server businesses. PC shipments grew 5% QoQ, with average selling price (ASP) rising on an increasing mix of high-end and AI PC products. Non-PC share of total revenue increased 5 percentage points from the same period last year, benefiting from the rapid growth of the AI server business - AI server accounted for approximately 70% of server revenue in 2Q26.

On profitability, 2Q26 gross margin was 4.6%, primarily affected by rising component costs, particularly memory. While cost pass-through supported ASP growth, the expanded revenue base also diluted gross margin. However, benefiting from continued product mix optimization and enhanced operational efficiency, gross profit and operating profit grew 4% and 9% YoY, respectively. In addition, non-operating income benefited from higher valuation gains on financial assets, bringing pre-tax profit to NT$4.639 billion. Net profit to the parent company was NT$3.133 billion, with EPS of NT$0.73.

For 1H26, consolidated revenue totaled NT$439.598 billion, up 16% YoY. With the rapid growth of the AI server business, ongoing product mix optimization, and the gradual realization of benefits from AI transformation, Compal’s operating scale and profitability both improved from the same period last year. Net profit to the parent company grew 91% YoY to NT$5.100 billion, with EPS of NT$1.18.

Looking ahead, Compal will continue to expand its AI server business and global capacity footprint, targeting non-PC revenue to approach 40% of total revenue in 2026. Following the official opening of the Daxi Manufacturing Center in Taoyuan, Compal’s AI server system capacity will double, with the addition of rack integration capabilities and a liquid cooling R&D Lab. Going forward, Compal will continue to deepen its AI transformation, leveraging internal transformation to drive long-term profitability improvement while sustaining and funding external growth momentum.

Compal Electronics, Inc.─ Statement of Comprehensive Income (Consolidated)

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Jack Wang    Vice President, Spokesperson            +886-2-8797-8588     Investor@compal.com
Tina Chang   Director, Deputy Spokesperson   +886-2-8797-8588     tinayt_chang@compal.com