The ongoing rally in memory chip prices continues to lift GigaDevice's results.
In the first three quarters of 2026, the company reported revenue of RMB 20.297 billion, up 197.11% year-on-year; net profit attributable to shareholders reached RMB 11.066 billion, surging 921.55% year-on-year; non-GAAP net profit attributable to shareholders was RMB 9.434 billion, up 805.26% year-on-year.
In the third quarter alone, revenue rose 225.65% year-on-year, while net profit attributable to shareholders increased 728.93% year-on-year and declined about 22% sequentially. Despite the sharp profit growth over the first three quarters, the sequential pullback in quarterly earnings means that when assessing the company's future performance, investors should not only focus on the profit elasticity driven by memory chip price increases, but also track industry conditions and the pace of earnings growth.
First Three Quarters Net Profit Exceeds RMB 11 Billion, Q3 Revenue More Than Triples Year-on-Year
The financial report shows that in the first three quarters of 2026, GigaDevice achieved revenue of RMB 20.297 billion, up 197.11% year-on-year; net profit attributable to shareholders of the listed company was RMB 11.066 billion, up 921.55% year-on-year; non-GAAP net profit attributable to shareholders was RMB 9.434 billion, up 805.26% year-on-year.
In the third quarter, the company generated revenue of RMB 8.732 billion, up 225.65% year-on-year; net profit attributable to shareholders was RMB 4.209 billion, up 728.93% year-on-year; non-GAAP net profit attributable to shareholders was RMB 4.551 billion, up 814.39% year-on-year. Both revenue and profit growth in the third quarter exceeded sevenfold year-on-year, indicating that the company's performance remains in a high-growth phase.
In terms of earnings quality, third-quarter non-GAAP net profit was higher than net profit attributable to shareholders, reflecting a negative impact from non-recurring gains and losses on quarterly net profit. The cumulative picture for the first three quarters differs: total non-recurring gains and losses were positive, with items such as investment-related fair value changes contributing to cumulative profit. Therefore, when evaluating the profitability of the company's core business, non-GAAP net profit also deserves attention.
Memory Chip Supply Tightness Drives Profit Growth Through Higher Volumes and Prices
The company stated in its financial report that during the reporting period, supply in the memory chip industry was tight, and its memory chip products saw both rising volumes and prices, boosting the profitability of its memory business. At the same time, microcontroller products benefited from demand in industrial, consumer, and automotive sectors, achieving solid shipment growth.
Based on the previously disclosed semi-annual report, the memory business was one of the core drivers of this round of profit growth. In the first half of 2026, the company's memory chip business revenue grew 245.44% year-on-year, significantly outpacing overall revenue growth for the same period. By product, niche DRAM and SLC NAND Flash grew rapidly; NOR Flash sales increased across application areas, with prices rising modestly. The company's DDR4 has entered full mass production across niche application segments, and self-developed LPDDR4X is progressing well.
The MCU business also provided incremental growth. In the first half, the company's MCU product revenue grew 49.07% year-on-year, with the industrial sector being its largest revenue source; the company previously said MCU product prices began to rise modestly starting in the second quarter. Rising memory chip prices combined with MCU shipment growth jointly supported the company's performance.
Q3 Net Profit Falls About 22% Sequentially, Future Growth Pace in Focus
It is worth noting that GigaDevice's third-quarter net profit attributable to shareholders was RMB 4.209 billion, compared with approximately RMB 5.396 billion in the second quarter, a sequential decline of about 22%. This contrasts with the still-high year-on-year growth: profit increased substantially from a year earlier, but quarterly earnings retreated from the prior quarter.
This change does not directly signal a reversal in industry conditions. Memory chip prices, product shipment mix, cost changes, and non-recurring gains and losses can all affect quarterly profit performance. Third-quarter non-GAAP net profit was RMB 4.551 billion, higher than quarterly net profit attributable to shareholders, also indicating that non-recurring items had differing effects on the two profit metrics. Further observation is still needed, combining the company's next-quarter results, memory product prices, and supply-demand changes, to judge whether profit growth can continue.
RMB 1.115 Billion in Shares Repurchased, Stock Price Down More Than 60% From Year-High
Beyond rapid profit growth, GigaDevice recently disclosed progress on its share repurchase. As of the announcement, the company had cumulatively repurchased 3.0086 million shares, accounting for 0.43% of total share capital, at an average repurchase price of RMB 370.64 per share, with cumulative payments of approximately RMB 1.115 billion. Under the repurchase plan, the company intends to use no less than RMB 1 billion and no more than RMB 2 billion of its own funds and/or self-raised funds to repurchase shares, all of which will be used for cancellation and reduction of registered capital.
However, the stock price has experienced a notable decline over the same period. On October 29, GigaDevice closed at RMB 278.04, down about 67.2% from its intraday high of RMB 846.66 on a forward-adjusted basis earlier in the year. At the same time, the previously disclosed average repurchase price of RMB 370.64 per share was significantly higher than the current closing price.
For GigaDevice, the core support for current performance is the tight supply of memory chips and the rise in both volumes and prices of its products. The sharp profit growth in the first three quarters validates the earnings boost from an upcycle in the industry; however, the sequential decline in third-quarter net profit also makes future memory price trends, shipment growth, and profit sustainability key areas to watch.
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