AU Optronics

AUO Corp returned to operating profitability in the second quarter of 2026, posting an operating profit of NT$200 million after three consecutive quarters of losses. Revenue reached NT$17.9 billion, up 2.7% quarter-over-quarter, while gross margin rose to 13%, an increase of 1.1 percentage points. The vertical solutions segment drove growth with an 11% revenue increase, accounting for 19% of consolidated revenue, and the company approved an additional NT$8.6 billion capital expenditure plan for value-added products and AI-related components. However, AUO expects display revenue to decline moderately in the third quarter due to slowing consumer electronics demand, particularly in notebooks, and sees headwinds from memory shortages and high channel inventory.