Issued Date: 2026/5/7
Issued By: iST
Hsinchu, Taiwan, May 7, 2026 — Integrated Service Technology Inc. (iST, TWSE: 3289), a leading provider of electronic product verification and analysis services, today convened its board meeting and announced its consolidated financial results for the first quarter of 2026:
1. Consolidated revenue for the first quarter reached approximately NT$ 1.083 billion, representing a decrease of 12.01% QoQ and a decrease of 4.24% YoY.
2. Operating gross profit for the first quarter was approximately NT$ 187 million, down 40.64% QoQ and down 46.96%% YoY.
3. Net operating profit (loss) for the first quarter stood at approximately NT$ (74) million, down 234.17% QoQ and down 160.73% YoY.
4. Net profit attributable to the parent company for the first quarter was approximately NT$ 177 million, an increase of 222.41% QoQ and 40.21% YoY.
5. Earnings per share (EPS) after tax for Q1 2026 was approximately NT$ 2.05, up 210.61% QoQ and up 20.59% YoY.
The Board of Directors today also approved a cash dividend of NT$ 1.6 per share.
iST stated that the gross margin and Net operating profit (loss) in the first quarter faced temporary volatility. This was primarily due to the company’s proactive completion of a “one-time” operational optimization and resource reallocation during the first quarter to secure its long-term competitive advantages. With the restructuring of its subsidiary, ProPowertek, completed in mid-March, iST not only cleared related processing expenses in Q1 to strengthen its financial health, but also transitioned ProPowertek into an “associate accounted for using the equity method.” This transition will significantly alleviate the burden on the parent company’s consolidated gross margin in the future, rendering the operational structure leaner and more focused on the high-margin core business of verification and analysis.
Regarding this equity restructuring, iST emphasized that it represents a “win-win” strategic layout. ProPowertek has established deep technical barriers in the field of wafer thinning. By introducing strategic investors and completing a cash capital increase, it not only showcases iST’s significant investment value and disposal gains, but more importantly, leverages complementary industry resources to accelerate ProPowertek’s market share expansion and transition toward a new stage of independent development. As iST’s shareholding decreases to under 40%, the company will assume the role of a strategic shareholder to share in the long-term profitable fruits brought about by the expansion of ProPowertek’s future business scale.
Looking ahead, iST’s core verification and analysis business possesses robust momentum. This April, the EDFAS (Electronic Device Failure Analysis Society) FA Workshop—the global authority on electronic component failure analysis hosted by iST—was held in Hsinchu, Asia for the first time. The event gathered global “tech giants,” including leading AI chipmakers, mobile communication giants, and major semiconductor foundries, to discuss cutting-edge failure analysis technologies. Through this international forum, iST demonstrated its analytical capabilities in leading-edge areas such as 2nm advanced processes, Silicon Photonics (SiPh), and Co-Packaged Optics (CPO), reaching consensuses with multiple international giants to further deepen future collaborations.
As AI computing demand enters an era of extreme complexity, iST’s one-stop optoelectronic verification and analysis platform has become an indispensable strategic partner for its customers. The company remains optimistic about its overall profitability for 2026. With the adjustment of its operational structure finalized and resource allocation becoming more streamlined, combined with the continuous influx of verification and analysis orders—particularly with the rising proportion of high-value, high-technical-barrier AI-related projects—iST expects gross margins to demonstrate a strong rebound starting in the second quarter, striving to create long-term value for shareholders.
iST’s Q1 2026 consolidated results
(Unit: NT$ thousands, except EPS)
| Item | Q1 2026 |
Q1 2025 |
Increase (Decrease) % |
Q4 2025 |
Increase (Decrease) % |
|---|---|---|---|---|---|
| Operating revenue |
1,083,458 | 1,131,486 | (4.24%) | 1,231,351 | (12.01%) |
| Operating gross profit |
187,138 | 352,822 | (46.96%) | 315,273 | (40.64%) |
| Net operating profit (loss) | (74,118) | 122,042 | (160.73%) | 55,241 | (234.17%) |
| The net profit attributable to the parent company | 177,275 | 126,431 | 40.21% | 54,984 | 222.41% |
| EPS after tax NT$ |
2.05 | 1.70 | 20.59% | 0.66 | 210.61% |
Founded in 1994, iST started its business with IC circuit debugging and modification and has gradually expanded its services to include Failure Analysis, Reliability Verification, Material Analysis, Signal Integrity, Chemical Analysis, and various consulting services. iST serves a broad range of customers across the electronics industry, from upstream IC design companies to downstream finished product manufacturers.
In response to emerging technological trends, iST has established comprehensive verification platforms, including Advanced Process and Advanced Packaging Verification for semiconductors, Automotive Electronics Verification, 5G/IoT/V2X/AI Verification, and Space Environment Testing Laboratories. By providing complete and all-encompassing verification and analysis services, iST continues to support its customers in addressing complex challenges in next-generation technologies.
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