WeTouch Technology Q1 net income jumps 50% on higher prices

WeTouch Technology Inc. (NASDAQ:WETH) reported a 50% increase in first-quarter net income to $3.9 million, as the touchscreen maker benefited from higher selling prices and a favorable currency exchange rate.

"We achieved solid revenue growth and a significant increase in net income in the first quarter of 2026," Zongyi Lian, Chief Executive Officer of WeTouch, said in a statement. "Our efforts to optimize the product mix have proven effective, with high-end touchscreens widely deployed across financial terminals, smart cockpit and in-vehicle HMI applications."

Revenue for the quarter ended March 31 rose 6.5% to $16.3 million, up from $15.3 million in the same period last year. Basic and diluted earnings per share were $0.32, a 52.4% increase from $0.21 a year earlier. The company’s gross margin slightly narrowed to 35.7% from 36.9%, which it attributed to higher labor and material costs.

The company’s sales in China grew to $11.0 million, accounting for 67.5% of total revenue, while overseas markets contributed $5.3 million. WeTouch has been shifting its production to focus on higher-margin products for applications including automotive displays, industrial control, and medical devices.

Shipments were nearly flat at 763,325 units, compared to 762,545 units in the first quarter of 2025, indicating that revenue growth was driven primarily by price and product mix rather than volume. The company ended the quarter with $120.5 million in cash and cash equivalents.

The results show WeTouch’s ability to boost profitability even with flat unit shipments, underscoring a successful pivot to higher-margin products. Investors will watch for progress on the new Chengdu facility, expected to commence production by the end of 2027, to gauge future capacity growth.

This article is for informational purposes only and does not constitute investment advice.