LITEON Q3 Revenue Hits NT$57.4 Billion as AI Infrastructure Demand Lifts Profit

Third quarter results

LITEON Technology (2301) said gross margin in the third quarter reached 25.9%, up 0.9 percentage points Y-o-Y. Operating margin rose 4.7 percentage points Y-o-Y to 15.1%. Revenue from the Cloud & IoT business grew nearly 60% Y-o-Y.

The company attributed the results to growing demand for next-generation AIDC infrastructure, a rising contribution from high-value businesses, economies of scale from global capacity expansion, and better operational efficiency through smart manufacturing. Third quarter EPS of NT$3.27 was up 60% Y-o-Y.

For the first nine months of 2026, consolidated revenue totaled NT$153.5 billion, up 26% Y-o-Y. Gross profit rose 36% Y-o-Y, with gross margin at 25.2%, up 1.9 percentage points. Operating profit increased 73% Y-o-Y, and operating margin climbed 3.8 percentage points to 13.7%. Net profit came to NT$18.3 billion, and EPS rose 64% Y-o-Y to NT$8.08, which LITEON described as an all-time high.

AI infrastructure drives growth

Anson Chiu, President of LITEON Technology, said global demand for AI computing and data center infrastructure continues to grow, lifting demand for high-end AI server power supplies, cloud computing products and power management systems. According to the company, this drove an 80% Y-o-Y increase in cloud computing-related revenue over the first nine months. AI-related revenue now accounts for more than 30% of total revenue this year.

Chiu said LITEON will focus on high-value opportunities in AIDC power management, liquid cooling and optical communications. The company plans to speed up development of critical technologies through strategic investments and M&A.

For the fourth quarter, LITEON expects its core businesses to grow both Y-o-Y and Q-o-Q. It cited upgrades in next-generation AI power management systems and volume production of integrated power and energy storage racks. Key drivers listed by the company:

• Volume production of 8.5kW PSUs for ASIC applications and BBUs, next-generation VR 110kW solutions and 42-inch Power Shelves for Helios.
• Prototype shipments of the 800 VDC Power Rack beginning this quarter.
• Continued momentum in high-end power applications, with shipments of power solutions for LEO satellites growing multiple-fold, where LITEON is a key supplier.

Board decisions and capital position

The Board approved a strategic investment to expand LITEON's capabilities in high-power transformers and inductors. The company said that, combined with its scale in power solutions, this will strengthen its position in critical components for AIDC power products. The Board also approved the spin-off of LITEON Rack, which the company said will let it sharpen its focus on core resources and improve operational specialization and efficiency.

LITEON said its ROIC has continued to improve as high-value AI infrastructure businesses take a larger share of the portfolio. It recently completed its first NT$36 billion sustainability-linked syndicated loan, which it says strengthens financial flexibility for global AI expansion and strategic investments.

Trade show plans and what it means

After showing the 800 VDC Power Rack, a 2.6MW Enterprise Cooling Distribution Unit (CDU) and a DC/DC Power Brick at the 2026 OCP Global Summit, LITEON will take part in electronica 2026 in Munich, Germany, in the fourth quarter. It plans to present its "One LITEON" portfolio from edge to cloud, covering power and energy management for AI infrastructure and edge computing, as well as optoelectronic semiconductors and networking.

The figures show how much of LITEON's business now depends on AI data center buildouts, with AI-related revenue above 30% of the total. The company's guidance points to continued growth in the fourth quarter, though these are LITEON's own expectations rather than results.