Earnings call transcript: eMemory posts modest Q2 2026 beat as stock rises

eMemory Technology Corp. reported a slight beat in earnings and revenue for Q2 2026, with earnings per share (EPS) of $7.75 exceeding expectations of $7.71. Revenue reached $1.10 billion, surpassing the $1.08 billion forecast by $20 million, or 1.9%. The company's revenue increased by 17.1% year-over-year, while operating margin improved to 60.7%.

Operating income rose to TWD 666 million, up 44.9% from the previous year. Licensing revenue grew 12.8% sequentially and 35.1% year-over-year, while royalty revenue increased 7.8% year-over-year and fell 6.4% from the prior quarter. Management highlighted stronger demand in advanced-node projects and a broader range of AI-related applications.

The company is shifting its focus from selling individual security components to providing integrated security subsystems, which aims to deepen its integration into customer chips and increase the value of each design win. Revenue rose at a double-digit pace from the prior year, and operating income grew faster than revenue, indicating positive cost control and operating leverage.

The stock rose 4.09% in after-hours trading to $2,290, and later traded at $2,700, up 22.7% from the pre-earnings reference level. Analysts expressed confidence in the company's AI-related security business, advanced-node pipeline, and expected royalty acceleration in the second half of 2026.