Team Group Q3 2026: Bits Came Back, Margin Hit 49.27%. The Cash Is Still on a DDR4 Shelf.

The setup

Team Group's third-quarter revenue rose 33.61% to NT$10.14B against DRAM contract steps of about 20% to 24%, so for the first time this year the company sold more bits as well as dearer ones, and gross margin rose to 49.27%. The cash did not come with it: inventory grew faster than sales, to NT$17.24B, and nine-month operating cash flow was −NT$1.74B against NT$8.32B of net profit. Our call is that the shelf turns into revenue in the fourth quarter: October–December revenue, the last of it filed by January 10, 2027, reaches at least NT$12.17B, September's run-rate held for three months; below NT$10.14B, no growth on the quarter, refutes it.

Team Group (十銓科技, 4967.TW) released its third-quarter statements on October 28, 2026 and held its investor conference on November 2. Revenue was NT$10.14B (~US$311.1M at ~32.59 NT$/US$, approximate), up 143.53% on the year and 33.61% on the quarter. Gross profit was NT$5.00B (~US$153.3M), a 49.27% margin, against 42.77% in the second quarter and 13.28% a year ago. Operating profit was NT$4.51B (~US$138.4M), a 44.50% margin. Net profit was NT$3.62B (~US$111.0M), up 49.96% on the quarter and 1,712.24% on the year, and basic EPS was NT$37.19 (~US$1.14); diluted EPS was NT$33.90. For the nine months, revenue was NT$26.77B (~US$821.5M) and EPS NT$90.95, more than nine times the par value of a share.

In August we read the second quarter as a company that held its material and let revenue fall 16.10% while prices rose: margin harvested from inventory, not volume won in the channel. The third quarter answers that read, and mostly against it. Revenue rose faster than the contract price, and the company's own monthly filings for July and August name both causes, shipments and price. What did not change is the shape of the balance sheet. Inventory is 3.35 times a quarter's cost of sales, up from 1.22 times a year ago. Income tax payable, NT$2.72B, is now 98.3% of the cash on hand. And 60.09% of the DRAM on the shelf, by quantity, is DDR4, the generation the big three are shutting down, while DDR4 was 11.61% of nine-month DRAM sales. That last pair is the most interesting number in the filing, and Connecting the dots works through it.

The numbers

Team Group Q3 2026 · NT$ billions unless stated

Source: Team Group consolidated statements for Q3 2026, Q2 2026 and Q3 2025, TWSE MOPS (TIFRS, unaudited, reviewed); quarterly operating cash flow derived from cumulative statements. Notes ↓

One piece of context before the argument. The tax line is large because the profit is new. The quarter's income tax expense was NT$907.9M, 20.06% of pre-tax profit, and the nine months' NT$2.14B (~US$65.8M) has almost all been accrued rather than paid: cash taxes were NT$79.4M. Taiwan settles the year's corporate tax with the annual return in May.

The company's own account of the quarter is price plus customers. CEO Chen Ching-wen (陳慶文), promoted from general manager with the results, said at the conference that margin rose on selling prices and a shift toward "high-margin, technically demanding" customers in AI servers, edge AI and industrial computing, in our translation. The deck puts numbers on the shift: business customers (B2B) were 64.60% of nine-month revenue, against 24.60% a year earlier, and DRAM was 83.63%, with DDR5 at 87.93% of DRAM sales. Management said it is "confident" about gross margin from here and gave no figure. Decode: the margin story has changed owners. A year ago Team Group was a gaming-memory brand selling through retail; today two-thirds of its revenue goes to server, networking and industrial-PC customers on contract, and those customers are the ones paying the shortage price.