LITEON Announces Record Second Quarter 2026 Financial Results Driven by AI Infrastructure Growth
TAIPEI, Taiwan — LITEON Technology (TWSE: 2301) has reported record-breaking financial results for the second quarter of 2026, fueled by surging demand for artificial intelligence (AI) infrastructure, cloud computing solutions, advanced power technologies, and energy management systems. The company achieved its strongest quarterly revenue, profitability, and earnings per share (EPS) in its history, reflecting the success of its long-term strategy to expand high-value AI-focused businesses while strengthening global manufacturing capabilities.
The impressive performance was supported by robust customer demand for AI power solutions, higher shipments of advanced products, improved operational efficiency through smart manufacturing, and continued expansion of the company’s cloud infrastructure business.
Record Quarterly Revenue and Profitability
For the second quarter of 2026, LITEON reported consolidated revenue of NT$52.7 billion, representing a 21% increase compared with the previous quarter and a 30% increase year over year. The strong revenue growth reflects sustained momentum across the company’s core business segments, particularly those serving AI, cloud computing, and next-generation data center applications.
The company’s profitability also reached historic highs during the quarter. Gross margin climbed to a record 27.2%, while operating margin increased to an all-time high of 15.6%. Compared with the same period in 2025, gross margin improved by 5.1 percentage points, and operating margin increased by 6.3 percentage points, highlighting LITEON’s ability to improve both operational efficiency and product mix.
Net profit reached a record NT$7.1 billion, driven by continued growth in high-margin AI infrastructure products and greater economies of scale across its expanding global manufacturing network. Earnings per share also reached a new company record of NT$3.14, representing an impressive 126% increase compared with the second quarter of last year.
AI and Cloud Businesses Lead Growth
A key driver behind the company’s outstanding financial performance was the continued expansion of its AI and cloud computing businesses.
LITEON reported that revenue from its cloud business increased by more than 70% year over year, reflecting accelerating investment in AI data centers, hyperscale cloud infrastructure, and enterprise computing platforms.
Demand for AI-related products remained exceptionally strong throughout the quarter as global technology companies continued expanding computing infrastructure to support generative AI, machine learning, and high-performance computing applications.
The company also benefited from deferred shipments of premium products originally scheduled for the first quarter, allowing higher-value deliveries to contribute significantly to second-quarter revenue.
In addition, an increasing share of revenue from high-value AI infrastructure solutions improved the company’s overall product mix, helping drive stronger margins and higher returns on invested capital.
Strong First-Half Financial Performance
LITEON also delivered record financial performance during the first six months of 2026.
Consolidated revenue for the first half reached NT$96.1 billion, representing a 25% increase compared with the same period in 2025.
Gross margin improved to 24.7%, while operating margin reached 12.8%, both setting new first-half records for the company.
Net profit totaled NT$10.9 billion, while earnings per share increased 66% year over year to NT$4.80.
According to the company, every major profitability indicator—including revenue, gross margin, operating income, net profit, and EPS—reached record highs during the first half of the year, demonstrating the effectiveness of its strategic transformation toward higher-value technology businesses.
Reflecting confidence in the company’s financial strength and long-term outlook, LITEON’s Board of Directors approved a cash dividend of NT$2.50 per share for the second quarter of 2026.
AI Strategy Continues to Deliver Results
LITEON President Anson Chiu credited the company’s long-term investment strategy in AI infrastructure for the strong financial results.
According to Chiu, growing customer demand for AI power solutions, energy storage technologies, and cloud infrastructure products has significantly strengthened revenue growth and profitability throughout the first half of 2026.
He noted that expanding contributions from high-value AI businesses have further enhanced the company’s product portfolio while improving its return on invested capital (ROIC).
Chiu emphasized that LITEON remains committed to strengthening its leadership in AI infrastructure through continued investment in advanced technologies, manufacturing capacity, and research and development. These initiatives are intended to position the company for sustainable long-term growth as global demand for AI computing continues accelerating.
Expanding Manufacturing Capacity
To support increasing customer demand, LITEON has significantly expanded its capital investment plans for 2026.
The company announced that it has increased planned capital expenditures (Capex) to NT$18 billion, reflecting its commitment to expanding global manufacturing capacity and strengthening supply chain resilience.
One of the company’s most significant investments is the previously announced US$919 million manufacturing facility in McKinney, Texas.
The new campus will serve as an integrated manufacturing hub that combines advanced smart manufacturing technologies with engineering, operations, research, and development capabilities.
The facility will primarily support production of AI infrastructure products and advanced energy management solutions, including next-generation High Voltage Direct Current (HVDC) Power Racks designed specifically for AI data centers.
The Texas investment will enhance LITEON’s ability to serve customers in North America while strengthening its global manufacturing footprint and improving responsiveness to rapidly growing market demand.
Preparing for the Future of AI Infrastructure
LITEON continues expanding its portfolio of advanced technologies supporting modern AI data centers and high-performance computing environments.
Among the company’s key focus areas are advanced power supplies, battery backup technologies, energy storage systems, and intelligent power management solutions designed to improve energy efficiency while supporting increasingly power-intensive AI workloads.
The company believes next-generation AI infrastructure will require significantly higher power density and greater energy efficiency, creating long-term opportunities for innovative power management technologies.
Its investments in research, engineering, and manufacturing are intended to position LITEON as a leading supplier of critical infrastructure supporting global AI deployment.
Positive Outlook for the Third Quarter
Looking ahead, LITEON expects continued business momentum throughout the third quarter of 2026.
Management projects both quarter-over-quarter and year-over-year growth across its major business segments as customer demand for AI infrastructure remains robust.
The company expects AI-related products to contribute more than 30% of total annual revenue, underscoring the growing importance of artificial intelligence within its long-term business strategy.
Growth during the third quarter is expected to be supported by the mass production of several next-generation products, including 8.5-kilowatt power supply units (PSUs) and Battery Backup Units (BBUs).
LITEON also plans to expand shipments of its advanced 110-kilowatt Power Shelves, which are designed to support increasingly demanding AI computing environments.
Another major milestone expected during the second half of 2026 is validation of the company’s 800 VDC HVDC Power Rack, an advanced power solution engineered to improve efficiency and scalability for future AI data centers.
Continued Momentum Across Emerging Technologies
Beyond AI infrastructure, LITEON expects strong growth across several emerging technology markets.
Demand for advanced information technology power applications remains healthy as enterprises continue modernizing digital infrastructure and expanding cloud services.
The company also expects its Low Earth Orbit (LEO) satellite power business to achieve multiple-fold year-over-year growth during 2026 as satellite communications networks continue expanding worldwide.
As a long-standing supplier of advanced power technologies, LITEON believes it is well positioned to benefit from growing investments in cloud computing, telecommunications, AI infrastructure, renewable energy, and next-generation networking technologies.
Positioned for Long-Term Growth
LITEON’s record financial performance during the second quarter and first half of 2026 demonstrates the company’s successful transition toward higher-value technology businesses centered on artificial intelligence, cloud infrastructure, advanced power management, and energy solutions.
Supported by record profitability, expanding manufacturing investments, continued innovation, and growing customer demand, the company enters the second half of 2026 with strong momentum. As AI adoption accelerates across industries and demand for next-generation computing infrastructure continues to rise, LITEON expects its expanding portfolio of intelligent power solutions and advanced infrastructure technologies to remain key drivers of sustainable long-term growth, reinforcing its position as a leading global provider of power and electronics solutions for the AI era.
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