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Earnings deep dive · Tier M memory & storage

Team Group Q2 2026 — Record EPS on 16% Less Revenue. In a Shortage, That's a Choice.

Team Group earned NT$2.412B in Q2 on revenue of NT$7.588B — EPS NT$26.47, a record, on revenue that fell 16.11% QoQ. The local coverage filed it under shortage economics: memory is scarce, prices are up, module houses print money. That framing survives exactly until you put a second module house next to it. In the same quarter, on the same island, buying from the same three DRAM makers, into the same contract steps, ADATA grew revenue 46.15% QoQ and gave back 13.6 points of gross margin to do it. A 62-point QoQ revenue spread between two Taiwanese module companies in a single quarter is not a market condition. It is a decision about what to do with material you were allocated — push it, or hold it. Team Group held. That is a defensible strategy and it produced the better net margin: 31.79% versus ADATA's 28.23%. But it also means this print is a repricing of inventory already owned rather than a claim on the channel, and repricing is not the same as being paid. Over the trailing twelve months through , Team Group booked NT$3.319B of net income and ran −NT$8.661B of operating cash flow. The number that resolves this quarter is not the EPS line and not Q3 revenue growth. It is whether the August and September monthly disclosures show revenue rising at all against a DRAM contract the company itself guides up 20–25%.
Published · Post-print analysis (Q2 2026 board-approved consolidated results, released ; July monthly revenue released ) · 4967.TW · Committed analyst read — not advice · For analysts covering DRAM/NAND modules, memory distribution, and the Taiwan supply chain

The only tension that matters

Team Group's Q2 was, by the headline, the best quarter in the company's history. Revenue NT$7.588B, up 66.18% YoY. Net profit NT$2.412B, up 5.14% QoQ and — against a nearly nil base quarter a year ago — up 21,827% YoY. EPS NT$26.47. First half: revenue NT$16.633B (+67.74%), net profit NT$4.706B (+3,902%), EPS NT$53.44. More than five share capitals earned in six months, as the Taiwanese press put it.

Revenue fell 16.11% sequentially. Q1 was NT$9.045B; Q2 was NT$7.588B. Every account of this print I've read carried that as a footnote. That happened in a quarter when DRAM and NAND contract prices were rising, which the company says explicitly is what drove the profit. So the same quarter contained a rising unit price and a falling revenue line. There is only one way to hold both: the number of bits Team Group sold went down, and it went down by more than price went up.

Profit rose anyway. Q1 net margin was 25.36%; Q2 net margin was 31.79% — 642 basis points of expansion on a shrinking top line. That is the whole print in one sentence, and it is not a demand story.

Team Group 2Q26 Income Statement 2Q26 · quarter ended · consolidated, unaudited · NT$ in billions Revenue NT$7.59B +66.2% Y/Y NT$7.59B +66.2% Y/Y Net revenue DRAM modules, SSDs, flash cards and gaming memory Gross profit NT$3.25B 42.77% margin from 10.0% a year ago Cost of revenue (NT$4.34B) 57.2% of revenue Operating profit NT$3.07B 40.50% margin Operating expenses (NT$0.17B) Net profit NT$2.41B 31.73% margin Income tax (NT$0.67B) 21.6% of pre-tax profit Selling (NT$0.13B) 1.7% of revenue General & administrative, net of credit-loss reversal (NT$0.03B) NT$31M G&A less a NT$4M expected-credit-loss reversal R&D (NT$0.01B) 0.2% of revenue Source: Team Group 2Q26 consolidated financial statements, TWSE MOPS · chart: tkal.news
Where Team Group's 2Q26 revenue dollar went: 42.8% survives cost of goods, 40.5% survives operating expense, 31.7% lands as profit before non-operating income — an operating-expense ratio of 2.3% of revenue, against 8.6% at ADATA in the same quarter. NT$7,588M − NT$4,343M = NT$3,245M gross profit from operations; less NT$172M of operating expense = NT$3,073M operating profit. Operating expenses as filed are R&D NT$15M, general & administrative NT$31M and selling NT$130M, against a NT$4M reversal of expected credit loss, NT$172M in total; the chart nets that reversal against the general & administrative line so the flow foots. Non-operating income and expenses are a net inflow of NT$5M, an inflow below operating profit that a flow chart cannot draw against, so the chart shows profit excluding it: NT$3,073M − NT$666M = NT$2,408M; that plus NT$5M = NT$2,412M profit for the period, all of it attributable to owners of the parent. Y/Y on revenue against NT$4,566M in 2Q25. Three months ended .

Put the peer next to it and the story changes

ADATA reported Q2 2026 on essentially the same calendar. Same country, same customer base, same suppliers, same contract steps.

Q2 2026Team Group (4967)ADATA (3260)
RevenueNT$7.588BNT$38.14B
Revenue QoQ−16.11%+46.15%
Revenue YoY+66.18%+197.43%
Gross marginn/d for Q2 not disclosed42.1% (−13.6pp QoQ)
Net profitNT$2.412BNT$10.768B
Net margin (derived)31.79%28.23%
EPSNT$26.47NT$32.39

Two companies facing an identical input market produced opposite revenue signs. ADATA took the volume and paid for it with margin — gross margin fell from roughly 55.7% to 42.1%, a 13.6-point give-back, in exchange for 46% more revenue. Team Group did the reverse: it protected price and mix and let the bits go, and its net margin came out 355 basis points above ADATA's despite operating at roughly a fifth of the revenue scale.

I want to be precise about what this does and does not prove. It does not prove Team Group was supply-constrained rather than strategically disciplined — the company's own language points at discipline, describing a deliberate pivot into industrial control, system integration, edge computing and defense-adjacent applications, and a B2B mix shift it says is now showing up in the numbers. What it does prove is that the shortage alone does not explain either company's quarter. If scarcity were the binding constraint on module revenue, ADATA could not have grown 46%. The constraint that bound Team Group was either its own allocation or its own choice, and in both cases the honest description of the earnings is the same: margin harvested from inventory, not volume won in the channel.

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