Yageo reported record revenue and profit for the second quarter of 2026, driven by demand from AI servers, automotive electronics, and industrial applications. The company said AI-related products now make up about 16% of total revenue, and all end markets posted growth during the quarter.
Revenue hit 44.456 billion in Q2, EPS rose to 4.59
Second-quarter consolidated revenue reached 44.456 billion, up 16.5% from the previous quarter and 35.7% from a year earlier. Gross margin was 38.5%, up 0.4 percentage point quarter over quarter and 2.9 percentage points year over year.
Operating profit came in at 11.749 billion, with an operating margin of 26.4%. EBITDA totaled 14.365 billion and EBITDA margin was 32.3%. Net profit attributable to the parent was 9.418 billion, up 17.7% from the prior quarter and 88.5% from a year earlier. Earnings per share reached 4.59, compared with 3.90 in the first quarter and 2.43 a year ago.
Yageo said Q2 EPS would have been 4.81 excluding the impact of undistributed earnings tax. For the first half of the year, revenue totaled 82.622 billion, up 29.3% year over year. Net profit reached 17.419 billion, up 65.5%, and EPS was 8.48.
AI contributed 16% of sales, with tantalum capacitors and MLCC still benefiting
The company said growth in the quarter came from product mix optimization, a recovery in end-application demand, and broad-based gains across regions and sales channels. AI remained the biggest growth engine.
According to Yageo, AI applications now account for about 16% of total revenue. As AI-related demand continued to rise, all product lines maintained growth. Demand from AI servers increased orders for specialty products, and tantalum capacitors saw the clearest benefit from AI platform adoption. Growth in MLCC and resistor products was steadier, while demand for both standard and specialty products improved. Total capacitor sales rose 14.1% from the previous quarter and 44% from a year earlier.
All five end markets expanded, with Asia leading regional growth
By application, Yageo said revenue increased across all end markets. AI and Computing & Enterprise Solutions continued to grow and currently account for about 16% of revenue.
By region, revenue increased in Asia, the Americas, Europe, and other markets. Asia posted the strongest growth, supported by firm demand for both standard and specialty products.
Free cash flow remained solid and leverage improved
Yageo reported second-quarter free cash flow of 5.783 billion. The company said the solid cash generation was supported by continued profitability and better inventory management.
Its net financial debt as a percentage of last-12-month EBITDA fell to 22%, extending the improvement seen over recent quarters. Yageo said debt had risen temporarily following the acquisition of Shibaura Electronics, but has been declining gradually. The company said it will continue balancing financial flexibility with investment opportunities.
Management highlighted P/E, while the market watches for rerating
At the earnings call, Yageo not only emphasized revenue and EPS growth but also specifically mentioned its P/E ratio, signaling that it wants the market to reassess the value of passive components in the AI era.
As demand rises for high-spec MLCC, tantalum capacitors, and magnetic components used in AI servers, passive components are drawing more attention in the AI infrastructure supply chain. The market is also watching whether a higher AI revenue mix and continued earnings growth could lead to a valuation rerating for the company.
For the second half, Yageo said customers remain positive. With AI demand staying strong, along with product mix optimization, price adjustments, and higher capacity utilization, the company kept a cautiously optimistic view on full-year operations.