Taiwan Optical Firm Landmark Posts Record Q3 Profit, Plans Sixfold Capacity Expansion by 2028
Landmark Optoelectronics reported record quarterly earnings driven by AI data center demand, with major clients placing six-month-plus orders and the company planning aggressive capacity expansion.
Landmark Optoelectronics, a Taiwan-based optical communication component manufacturer, held its third-quarter earnings call on October 28, 2026, reporting strong results driven by high-speed transmission demand from AI data centers. Consolidated revenue for the quarter reached NT$1.562 billion, up 28% quarter-over-quarter and 183% year-over-year. Gross margin rose to 58.56%, an increase of approximately 1.1 percentage points from the second quarter. Net income after tax was NT$621 million, up 33% quarter-over-quarter and 5.28 times year-over-year, resulting in a single-quarter EPS of NT$6.12, a historical high. Cumulative EPS for the first three quarters stood at NT$13.88.
Product mix analysis shows that DataCom-related products accounted for approximately 80% to 85% of total revenue, with the majority derived from silicon photonics applications. As AI servers and data centers continue to expand, demand for high-speed optical components remains robust, boosting both shipment volumes and profitability. Looking ahead to the fourth quarter, Landmark expects revenue growth of 15% to 20% quarter-over-quarter, noting that key customers have already begun placing long-term orders exceeding six months, indicating sustained momentum.
To meet future growth demands, Landmark's board-approved capital expenditure plans over the past year have accumulated to more than NT$8 billion. The company provided explicit guidance that output volume in 2027 is expected to increase 2.5 times compared to 2026 (approximately 150% YoY), and total output in 2028 is projected to increase another 2.5 times compared to 2027. This aggressive expansion plan reflects management's confidence in the long-term AI optical interconnect market but also implies that equipment depreciation and personnel costs will gradually impact financial statements. CFO Yang Ji-yu stated that the company aims to keep depreciation expenses within 8% to 10% of revenue and does not expect profit margins to rise indefinitely without limit.