Issued date: 2026/8/6
Issued by: iST
Hsinchu, Taiwan, August 6, 2026 – Integrated Service Technology Inc. (iST, TWSE: 3289), a leading provider of electronic product verification and analysis services, today held its Board of Directors meeting and announced its consolidated financial results for the second quarter of 2026:
1. Consolidated Revenue: Q2 consolidated revenue reached approximately NT$1.184 billion, an increase of 9.24% QoQ and a decrease of 1.70% YoY.
2. Gross Profit: Q2 gross profit was NT$309 million, up 65.25% QoQ and down 5.09% YoY. Gross margin for Q2 2026 stood at 26.13%.
3. Operating Income: Q2 operating income was NT$71 million, representing an increase of 196.06% QoQ and a decrease of 19.38% YoY.
4. Net Income Attributable to Stockholders of the Parent: Q2 net income was NT$89 million, down 49.57% QoQ and down 19.80% YoY.
5. Earnings Per Share (EPS) after tax for Q2 2026 was approximately NT$1.03, down 49.76% QoQ and down 31.33% YoY.
iST stated that benefiting from the effective adjustment of its operational structure and increased demand for high-margin verification and analysis services, core business operations stabilized in the second quarter. The consolidated gross margin of Q2 rebounded significantly from 17.27% in the previous quarter to 26.13%, representing a sharp increase of 8.86 percentage points. This expansion drove operating income back into positive territory at approximately NT$71 million, demonstrating robust recovery momentum in core profitability.
Addressing the decline in overall Earnings Per Share (EPS) compared to the first quarter, iST clarified that this was primarily due to differences in the composition of earnings. The first-quarter profits included a one-time non-operating gain from the sale of equity interest in former subsidiary, ProPowertek, creating a relatively high baseline. In contrast, second-quarter earnings fully returned to “core operational momentum.” Excluding the impact of the one-time non-operating gain, both gross margin and operating income showed substantial growth compared to Q1, reflecting a healthier underlying operational structure and a significant enhancement in core earnings quality.
Regarding dividend policy, iST’s Board of Directors today also approved the Q2 2026 earnings distribution plan, proposing a cash dividend of NT$1.6 per share. This underscores the company’s ample working capital and the management team’s strong confidence in future growth.
Furthermore, to optimize its capital structure and reduce operational expense burdens, the Board approved the issuance of the company’s 6th domestic unsecured convertible bonds (CB6). The total funds expected to be raised from CB6 amount to approximately NT$1.2 billion, with a coupon rate of 0% per annum, a 3-year maturity period, and an expected issue price at 100.5% of par value.
Looking ahead, driven by robust demand for AI computing power and rising verification needs in advanced technologies—such as advanced packaging, Silicon Photonics (SiPh), and Co-Packaged Optics (CPO)—the synergistic effects of iST’s one-stop verification and analysis platform will continue to unfold. The management team remains confident in overall operational momentum as it continues to deepen core technological capabilities and enhance R&D capability.
iST(TWSE:3289) Q2 2026 consolidated results
(Unit: NT$ thousands, except EPS)
| Item | Q2 2026 | Q2 2025 | Increase (Decrease) % |
Q1 2026 | Increase (Decrease) % |
|---|---|---|---|---|---|
| Operating revenue |
1,183,521 | 1,204,039 | (1.70%) | 1,083,458 | 9.24% |
| Operating gross profit |
309,242 | 325,818 | (5.09%) | 187,138 | 65.25% |
| Net operating profit (loss) | 71,196 | 88,312 | (19.38%) | (74,118) | 196.06% |
| The Net Profit attributable to Stockholders of the Parent | 89,400 | 111,471 | (19.80%) | 177,275 | (49.57%) |
| EPS after tax NT$ |
1.03 | 1.50 | (31.33%) | 2.05 | (49.76%) |
About Integrated Service Technology
Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations, including Failure Analysis, Reliability Assurance, Material Analysis and so on. iST has offered full-scope verification and analysis services to the IC engineering industry, its customers cover the whole spectrum of the electronics industry from IC design to end products.
In response to the growing future trends, iST has established platforms for 5G/HPC/AI, Automotive Electronics verification, Space Satellite verification, Advanced Processes and Wide-bandgap Semiconductors, LTS ( low-temperature soldering) Process verification platforms, as well as High-speed Transmission Signal Testing, offering comprehensive verification and analysis services. With a commitment to providing complete solutions to customers, iST has expanded its services beyond verification to encompass Wafer Backend Process for mass production service.
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