Advantech Reports Quarterly Revenue of NT$32.440 Billion, Up 83%
Key Facts
Advantech reported revenue of NT$32.440 billion in the third quarter of 2026, up 83% year over year and 24% from the second quarter, according to a company statement. Net income was NT$6.218 billion, up 125% year over year and 38% quarter over quarter, while earnings per share reached NT$7.15. Operating profit rose to NT$6.795 billion, up 151% year over year and 33% quarter over quarter. Gross profit was NT$11.896 billion, up 72% year over year and 21% quarter over quarter. The results made the third quarter the company's strongest performance in the period, with sales and profits expanding simultaneously.
Advantech attributed strong demand to the continued development of the edge AI market and demand from application sectors including semiconductor equipment and smart healthcare. Revenue growth extended across multiple regions during the first nine months of 2026, rising 58% in North America, 36% in Europe and 55% in China. North Asia grew 43%, while revenue increased 72% in Taiwan and 37% in emerging markets. The growth distribution reported by the company indicates that expansion was not limited to a single geographic market. Revenue for the first nine months was $2.485 billion, up 46% year over year; this is a cumulative figure for the period, not revenue for the third quarter alone.
By business segment, IoT automation revenue grew 25% year over year in the first nine months of 2026, while smart systems revenue rose 49% and embedded systems revenue increased 40%. Smart services grew 7% over the same period. These figures showed different rates of expansion across the businesses, with faster growth in smart systems and embedded systems than in smart services. The results for IoT automation and smart systems are consistent with the demand the company described for edge AI applications and industrial and healthcare uses. These are segment revenue growth rates year over year for the nine-month period, not for the third quarter alone.
Advantech's book-to-bill ratio rose to 1.64 in the third quarter, according to company data, indicating that orders booked exceeded shipments during the period. The ratio was 2.12 in North America, 1.52 in Europe and 1.50 in China. The company said regional ratios improved from the previous quarter. Together with revenue growth across regions, the indicator offers a picture of the breadth of demand accompanying the quarterly results. Second-quarter revenue was NT$26.126 billion and earnings per share were NT$5.20, while revenue at the time grew 46% year over year, providing the previous quarterly comparison cited in company data.
But profit expansion came alongside pressure on gross margin: Advantech said higher costs for key components temporarily reduced the margin year over year. That puts third-quarter gross profit growth of 72% year over year alongside an input-cost challenge that is not offset by the higher profit figure. The company also cited raw-material price volatility and supply-chain challenges. It said it had taken steps to support long-term supply stability and maintain cost pass-through mechanisms. The company data that could be verified did not include reliable, publicly available guidance for fourth-quarter revenue or gross margin.
Advantech was scheduled to hold an investor conference on its third-quarter results on November 4, 2026, at 3:30 p.m. local time as announced. The conference provides an opportunity to follow any additional details the company may offer on its performance, demand and component costs. Until then, the published figures showed strong revenue and profit growth in the third quarter, alongside cost pressures that the company said had temporarily affected margins. The company also reported measures aimed at stabilizing supply and maintaining cost pass-through mechanisms. The data did not include numerical forecasts for the fourth quarter that could be relied upon.