AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the third quarter of 2026(1).
Consolidated revenues in the third quarter of 2026 were NT$66.88 billion, down by 5.7% quarter-over-quarter and down by 4.3% year-over-year. AUO's net loss attributable to owners of the Company for the third quarter of 2026 was NT$2.50 billion, with a basic EPS(2) of -NT$ 0.33.
Highlights of consolidated results for the third quarter of 2026
- Revenues of NT$66.88 billion
- Operating loss of NT$2.37 billion
- Net loss attributable to owners of the Company at NT$2.50 billion
- Basic EPS(2) was -NT$0.33
- Gross margin was 10.1%
- Operating margin was -3.5%
- EBITDA(3) margin was 7.4%
(1) All financial information was prepared by the Company in accordance with Taiwan IFRS. ADLINK Technology Inc. ("ADLINK") convened its annual general meeting of shareholders in late June 2025, during which a full re-election of the Board of Directors was conducted. As a result of the election, AUO secured a majority of the ordinary director seats. Accordingly, effective June 30, 2025, ADLINK has been included in AUO's consolidated financial statements.
(2) Basic EPS in the third quarter of 2026 was calculated based on the weighted average outstanding shares of the reporting quarter (7,547 million shares).
(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.
Looking back at the third quarter, consolidated revenue decreased by 5.7% QoQ. Among the three pillars, revenue from Display declined by 11%, primarily due to continued softness in demand for consumer electronics products. Mobility Solutions revenue remained roughly flat compared to the previous quarter, supported by the team's ongoing efforts to deepen collaboration with automotive customers. Vertical Solutions revenue increased by 1% QoQ, driven by stable growth in panel shipments for retail, healthcare, and industrial/commercial applications. On the profitability side, lower revenue resulted in a sequential decline in gross profit, and operating performance turned to a loss during the quarter. The Company will continue to focus on improving profitability.
Looking ahead to the fourth quarter, seasonal restocking activities have largely come to an end, and customer procurement behavior has become more prudent. Mobility Solutions continues to secure new projects and support customer demand. Vertical Solutions demand remains comparatively stable. While uncertainties in the external environment continue to pose challenges, the Company will closely monitor market conditions and maintain flexibility in responding to changes in the business environment.