All Ring Tech’s 2Q26 Results Beat Expectations Across the Board, Goldman Sachs Says
All Ring Tech’s (6187.TWO) preliminary 2Q26 results beat expectations across the board.
All Ring Tech’s (6187.TWO) preliminary 2Q26 results beat expectations across the board. Gross margin was 54.8%, above Goldman Sachs’ 54.0% estimate and Bloomberg’s 52.5% estimate. Operating margin was 33.3%, while EPS was NT$8.50, exceeding expectations by 36% to 39%. The results primarily benefited from a higher contribution from the company’s high-margin CoWoS-related business and cost controls.
Momentum is expected to remain strong in 3Q26, with revenue projected to increase 29% sequentially. Growth is expected to slow sequentially in 4Q26 because of seasonal factors.
Long-term drivers include continued CoWoS capacity expansion, the gradual ramp-up of CPO, or co-packaged optics, which Goldman Sachs estimates will account for 58% of revenue in 2028, higher ASPs for panel-level packaging, and potential penetration of U.S. customers.
The bank expects revenue to grow 44% year over year in 2027.
The note identifies All Ring Tech, the CoWoS advanced-packaging supply chain, the CPO or co-packaged-optics supply chain, and panel-level packaging as potential beneficiaries. It also notes that the market has already priced in substantial positive expectations, with the stock up 184.6% over the past 12 months, while still indicating 33% upside.
The catalysts cited in the note are continued CoWoS demand in 3Q26, supporting 29% sequential revenue growth; the ramp-up of new panel-level packaging and CPO equipment in 4Q26; the gradual ramp-up of CPO from 2027; potential penetration of U.S. customers; and the gross-margin trend, including whether the company can maintain a margin above 54% in 3Q26.
Momentum is expected to remain strong in 3Q26, with revenue projected to increase 29% sequentially. Growth is expected to slow sequentially in 4Q26 because of seasonal factors.
Long-term drivers include continued CoWoS capacity expansion, the gradual ramp-up of CPO, or co-packaged optics, which Goldman Sachs estimates will account for 58% of revenue in 2028, higher ASPs for panel-level packaging, and potential penetration of U.S. customers.
The bank expects revenue to grow 44% year over year in 2027.
The note identifies All Ring Tech, the CoWoS advanced-packaging supply chain, the CPO or co-packaged-optics supply chain, and panel-level packaging as potential beneficiaries. It also notes that the market has already priced in substantial positive expectations, with the stock up 184.6% over the past 12 months, while still indicating 33% upside.
The catalysts cited in the note are continued CoWoS demand in 3Q26, supporting 29% sequential revenue growth; the ramp-up of new panel-level packaging and CPO equipment in 4Q26; the gradual ramp-up of CPO from 2027; potential penetration of U.S. customers; and the gross-margin trend, including whether the company can maintain a margin above 54% in 3Q26.