Issued date: 2026/11/6
6Issued by: iST
Hsinchu, Taiwan, November 6, 2026 – Integrated Service Technology Inc. (iST, TWSE: 3289), a leading provider of electronic product verification and analysis services, held a Board of Directors meeting today and announced its consolidated financial results for the third quarter of 2026.
1. Consolidated Revenue: Q3 consolidated revenue was approximately NT$ 1.130 billion, down 4.50 % QoQ and 11.40% YoY.
2. Gross Profit: Q3 gross profit was NT$337 million, up 9.13% QoQ and 8.21% YoY. Gross margin for Q3 2026 was 29.86%.
3. Operating Income: Q3 operating income was NT$124 million, up 74.43% QoQ and 47.63% YoY.
4. Net Income Attributable to Stockholders of the Parent: Q3 net income attributable to stockholders of the parent was NT$92 million, up 3.03% QoQ and 24.15% YoY.
5. Earnings per Share (EPS): Q3 after-tax EPS was approximately NT$1.06, up 2.91% QoQ and 6.00% YoY.
Although third-quarter revenue declined both quarter over quarter and year over year, steady orders from major international customers and strong demand for higher-margin AI-related verification and analysis services significantly improved iST’s service mix. Gross margin rose from 17.27% in Q1 to 26.13% in Q2 and reached 29.86% in Q3, approaching 30%. The improved service mix also helped lift third-quarter EPS both quarter over quarter and year over year. The increase in gross margin and earnings despite lower revenue reflects the progress iST has made in strengthening the profitability of its core operations.
iST noted that the cloud service providers (CSPs) accelerate the development of their own AI chips, driving demand for verification services in advanced process technologies and advanced packaging. As AI chip designs become more complex and manufacturing costs rise, failure analysis (FA), materials analysis (MA), reliability assurance (RA), and test interface solutions play an increasingly important role at every stage, from early R&D through volume production.
iST continues to see steady demand for AI chip verification services and to take on new development projects from major international customers. While market attention has increasingly focused on cloud service providers’ capital spending and cash flow pressures, demand for verification services comes primarily from early-stage chip R&D and pilot production, making it less directly tied to the pace of data center construction. iST’s AI chip verification projects continue to move forward, and the company will continue to monitor the pace of customer investment.
While mature semiconductor markets such as consumer electronics have been slower to recover, R&D projects in AI chips, high-performance computing (HPC), and advanced packaging continue to accelerate. iST sees substantial room for growth in the verification services these projects require.
At the same meeting, iST’s Board of Directors approved the earnings distribution plan for the third quarter of 2026, which provides for a cash dividend of NT$1.00 per share. The distribution reflects the company’s ample working capital and sound financial position.
Looking ahead, iST will continue to expand its advanced analysis and verification capabilities by combining its one-stop verification and analysis platform with its test interface solutions, iST will refine its core technologies and strengthen its R&D capabilities to meet the verification needs of next-generation technologies. Management remains confident in the company’s medium- and long-term growth prospects.
iST(TWSE:3289) Q3 2026 consolidated results
(Unit: NT$ thousands, except EPS)
| Item | Q3 2026 | Q3 2025 | Increase (Decrease) % |
Q2 2026 | Increase (Decrease) % |
|---|---|---|---|---|---|
| Operating revenue |
1,130,266 | 1,275,701 | (11.40)% | 1,183,521 | (4.50)% |
| Operating gross profit |
337,469 | 311,854 | 8.21% | 309,242 | 9.13% |
| Net operating profit (loss) | 124,185 | 84,117 | 47.63% | 71,196 | 74.43% |
| The Net Profit attributable to Stockholders of the Parent | 92,113 | 74,193 | 24.15% | 89,400 | 3.03% |
| EPS after tax NT$ |
1.06 | 1.00 | 6.00% | 1.03 | 2.91% |
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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