Question · Q1 2026
E. Quinn Chung asked about the drivers behind the strong operating margin in Q1, specifically if it was mainly due to cost reduction plans or other reasons, and the expected contribution of cost reduction for the rest of the year, along with the full-year operating margin outlook.
Answer
Stephen Yang, Executive President and CFO, stated that the 100 basis point margin expansion in Q1 was primarily driven by better utilization, operating leverage, effective cost control initiated in March, and profit contribution from East Buy. He expressed optimism for greater margin expansion in Q2 and for the full fiscal year across all business lines due to ongoing focus on profitability and cost control.