Pegatron reported a stronger second quarter in 2026 as surging AI server shipments transformed its revenue mix and pushed Computing into a much larger role within the Taiwanese electronics manufacturer’s business.
Pegatron’s consolidated revenue reached NT$274.448 billion (about US$8.5 billion) in Q2 2026, increasing 12.4 percent quarter on quarter and 2.7 percent year on year. Revenue was NT$244.105 billion in Q1 2026 and NT$267.336 billion in Q2 2025.
The biggest growth came from Computing, where revenue jumped 84 percent year on year and 82 percent quarter on quarter, primarily due to higher Server shipments. Consumer revenue also increased, while Communication remained under pressure from weaker demand.
Pegatron Revenue Recovers to NT$274.448 Billion
Pegatron’s eight-quarter revenue trend highlights the recent volatility in its electronics manufacturing business. Consolidated revenue was NT$294 billion in Q3 2024, NT$327 billion in Q4 2024, NT$272 billion in Q1 2025, NT$267 billion in Q2 2025, NT$258 billion in Q3 2025, NT$320 billion in Q4 2025, NT$244 billion in Q1 2026 and NT$274 billion in Q2 2026.
The Q2 2026 recovery was led by Computing and Consumer products, with AI infrastructure emerging as an increasingly important growth driver.
AI Servers Push Computing Revenue Up 84%
Computing was Pegatron’s fastest-growing major business in Q2. Revenue surged 84 percent year on year and 82 percent sequentially, largely because of higher Server shipments.
Computing accounted for 23 percent of consolidated revenue in Q2 2026, sharply higher than 13 percent in Q2 2025 and 14 percent in Q1 2026.
Based on the rounded 23 percent revenue mix, Computing generated approximately NT$63.1 billion during the quarter.
The 10-percentage-point increase in Computing’s share of revenue in just one year demonstrates how quickly servers and AI infrastructure are changing Pegatron’s business mix.
Pegatron Targets NT$100 Billion Server Business
Pegatron expects its Server business to expand rapidly as hyperscale cloud companies increase investment in AI infrastructure.
The company expects server revenue to increase more than 10-fold in 2026, with management targeting approximately NT$100 billion in annual server revenue as production scales.
Growth in the second half of 2026 is expected to benefit from shipments of Nvidia GB-series, B200 and B300 AI servers. Pegatron also expects the GB300 lifecycle to extend into 2027 and is pursuing additional large hyperscale cloud customers.
Its AI infrastructure portfolio includes rack-scale systems based on Nvidia architectures, including GB300 NVL72 solutions and B200 and B300 GPU server platforms.
Management expects Servers could become one of Pegatron’s top three, or potentially top two, business groups within the next one to two quarters, highlighting the speed of the company’s AI infrastructure expansion.
Consumer Revenue Rises 5%
Consumer was another contributor to Q2 growth. Revenue increased 5 percent year on year and 57 percent quarter on quarter.
Consumer products represented 7 percent of Q2 2026 consolidated revenue, unchanged from 7 percent in Q2 2025 but above 5 percent in Q1 2026.
Based on the rounded revenue mix, Consumer generated approximately NT$19.2 billion during Q2.
Pegatron expects health-band and IoT products to benefit from the third-quarter peak season. However, Consumer revenue could decline slightly sequentially because Q2 benefited from tablet product launches, creating a higher comparison base.
Communication Revenue Drops 11%
Communication was the weakest of Pegatron’s major product categories. Revenue fell 11 percent year on year and 2 percent quarter on quarter amid weaker demand, although Pegatron characterized sequential performance as broadly flat in its business commentary.
Communication represented 18 percent of consolidated revenue in Q2 2026, down from 20 percent in Q2 2025 and 21 percent in Q1 2026.
Based on the rounded revenue mix, the Communication business generated approximately NT$49.4 billion during Q2.
Inventory replenishment provided some support during the quarter, but the business continues to be influenced by seasonal smartphone demand.
Pegatron Revenue Mix Shifts Toward AI Computing
Pegatron’s changing product mix provides one of the clearest indications of its strategic shift.
Between Q2 2025 and Q2 2026, Computing increased from 13 percent to 23 percent of revenue, while Consumer remained unchanged at 7 percent. Communication declined from 20 percent to 18 percent, while Others dropped from 60 percent to 52 percent.
Based on Q2 2026 consolidated revenue and the rounded product mix, Others represented approximately NT$142.7 billion.
The numbers indicate that Pegatron is becoming less dependent on its traditional communications manufacturing operations as servers and AI computing infrastructure take a larger share of revenue.
Pegatron H1 2026 Revenue Falls 3.9%
Despite the Q2 recovery, Pegatron’s first-half performance remained below the previous year’s level.
Revenue for the first half of 2026 totaled NT$518.553 billion, declining 3.9 percent year on year from NT$539.769 billion.
However, the accelerating Server business could significantly reshape Pegatron’s growth profile during the remainder of 2026.
The contrast between 84 percent year-on-year Computing growth and an 11 percent decline in Communication revenue illustrates the shift underway. Computing’s share has already expanded from 13 percent to 23 percent in one year, while Pegatron is targeting around NT$100 billion in annual server revenue.
With B200, B300 and GB-series AI server shipments ramping and GB300 demand expected to continue into 2027, AI infrastructure is emerging as one of Pegatron’s most important revenue growth opportunities.
FASNA SHABEER
