MediaTek has released its self-filed financial report for the third quarter of 2026, showing higher revenue and profit as flagship chip shipments increased and momentum in the premium market improved. Consolidated revenue for the quarter reached NT$168.058 billion, up 10.4% from the prior quarter and 18.3% from a year earlier. Net income after tax was NT$27.882 billion, up 10.6% year over year, and earnings per share came in at NT$17.50.
Core operations stayed firm in the third quarter
MediaTek’s profit structure remained stable during the quarter. Gross profit totaled NT$77.848 billion, rising 10.7% quarter over quarter and 17.8% year over year. Gross margin was 46.3%, compared with 46.2% in the previous quarter and 46.5% in the same period last year.
Operating income from core business reached NT$27.102 billion, up 18.5% from the previous quarter and 22.2% from a year earlier. That growth outpaced revenue growth. Operating margin rose to 16.1%, versus 15.0% in the prior quarter.
Research and development spending remained elevated. MediaTek reported NT$42.237 billion in R&D expenses for the quarter, with the R&D expense ratio holding at 25.1%.
US$3.9 billion ECB settlement lifted cash holdings
The quarter’s most visible change came in financing and asset structure. Net cash inflow from financing activities reached NT$107.703 billion, while non-current liabilities jumped from NT$34.488 billion at the end of the second quarter to NT$151.078 billion.
That shift reflected the settlement of MediaTek’s US$3.9 billion overseas unsecured convertible bond, or ECB, in early September. The deal was equivalent to about NT$125 billion. NVIDIA subscribed for US$3.5 billion as a designated investor, covering close to 90% of the total size. Alphabet, the parent company of Google, and other top international institutions participated in the remaining allocation.
According to the source material, the bond carried a 0% coupon, a 15% conversion premium, a conversion price of NT$4,513.75 per share, and dilution of about 1.67%.
After the funding was received, MediaTek’s cash and cash equivalents rose from NT$189.001 billion at the end of the second quarter to NT$269.058 billion by quarter-end. Including current financial assets, the total reached NT$278.320 billion.
Inventory rose to NT$153.531 billion
MediaTek’s net inventory increased to NT$153.531 billion in the third quarter, up from NT$98.421 billion at the end of the second quarter. The company’s operating cash flow therefore recorded a temporary net outflow of NT$4.256 billion during the period.
The source said market analysts linked the inventory increase to larger shipments of new flagship chips in the second half of the year, as well as the gradual start of development and production scheduling for custom chips, or ASICs, with NVIDIA and major cloud service providers. That, in turn, raised demand for wafer input and purchases tied to advanced packaging.
With core operations still running at a high level and financing completed, MediaTek said the company had prepared more capital for future ASIC deployment and procurement tied to advanced process technologies worldwide.
