ASUSTeK Computer Inc.

ASUS brand revenue in Q3 2025 was TWD 189.9 billion, up 21% year over year and a record high for a single quarter. Operating income was about TWD 8.4 billion, net income was TWD 10.5 billion, and quarterly EPS was TWD 14.2. Brand gross margin was 12.9% and operating margin was 4.4%; management said gross margin improved meaningfully versus Q2 due to a more stable tariff and FX environment. Nonoperating income totaled TWD 3.7 billion, including TWD 600 million of interest income, TWD 1.06 billion of investment gains, TWD 1.2 billion of FX gains, and TWD 960 million of dividend income. Cash and cash equivalents were roughly TWD 62 billion at quarter end, inventory turnover averaged 98 days, and the cash conversion cycle was around 102 days. For Q4 2025, ASUS expects PC shipments to decline 10% to 15% quarter over quarter but remain roughly flat year over year, while components and servers may fall 5% to 10% quarter over quarter but grow 40% to 50% year over year.

The co-CEOs framed the quarter as evidence that ASUS is becoming more balanced across gaming, consumer, and enterprise, with the enterprise pillar now a meaningful third growth engine. S.Y. Hsu emphasized ASUS’ AI strategy as a full-stack effort spanning cloud, edge, and devices, while Samson Hu highlighted execution in Copilot+ PCs, premium gaming, commercial PCs, AI servers, and the GX10 hybrid AI product. Both sounded constructive on 2026, pointing to upcoming AI PC and AI server cycles, though they also acknowledged the market is still dealing with product transitions and slower-than-expected AI PC application adoption.

Nick Wu reported record Q3 brand revenue of TWD 189.9 billion, gross margin of 12.9%, operating margin of 4.4%, EPS of TWD 14.2, and cash of roughly TWD 62 billion. He said the margin improvement came from a more stable environment as tariffs and exchange rates stabilized in Q3, and noted working capital increased to support higher operating scale, with inventory turnover at 98 days and cash conversion cycle at 102 days. For Q4, he guided to the usual seasonal slowdown plus product-cycle transition effects, but still described ASUS as maintaining strong annual growth momentum.

Analysts focused on memory and SSD inflation, AI server mix and shipment timing, ROG Ally demand, 2026 PC/AI PC trends, tariffs, and server geography/capacity. Management said it had already lengthened component inventory cycles, ending Q3 with about 2 months of component inventory and close to 2 months of finished goods, which should limit Q4 impact, and said pricing and mix will be adjusted if needed. On AI servers, management said the business is now close to 20% of revenue, shipments of B300/GB300 began in September, and demand is strong; on ROG Ally, Q4 sales contribution is expected at around TWD 3 billion to TWD 5 billion, with strong demand for high-end models. On 2026, ASUS said the overall PC market may be roughly flat, AI PC adoption is still moderate, and the company will monitor tariffs and the Section 232 semiconductor issue while expanding U.S. server manufacturing as demand requires.