WeTouch Technology Inc. Reports First Quarter Fiscal Year 2026 Revenue of $16.3 Million and Net Income of $3.9 Million, Representing a 50.0% Year-over-Year Increase in Net Income
Rhea-AI Summary
WeTouch Technology (NASDAQ:WETH) reported unaudited Q1 FY2026 revenue of $16.3 million, up 6.5% year-over-year, and net income of $3.9 million, up 50%. EPS reached $0.32, a 52.4% increase. Gross margin was 35.7% and units shipped were essentially flat at 763,325.
Cash stood at $120.5 million and shareholders' equity at $143.2 million. China generated 67.5% of revenue and overseas markets 32.5%. A new Chengdu production facility is under construction, with completion expected by the first half of 2027.
Positive
- Revenue rose to $16.3 million, up 6.5% year-over-year
- Net income increased 50% year-over-year to $3.9 million
- Basic and diluted EPS grew 52.4% to $0.32
- Cash and cash equivalents rose to $120.5 million from $118.4 million
- Shareholders’ equity increased to $143.2 million from $137.4 million
- China revenue reached $11.0 million, 67.5% of total sales
Negative
- Gross margin declined to 35.7% from 36.9% year-over-year
- Unit shipments were essentially flat at 763,325 versus 762,545
- Higher labor and material costs pressured gross margin
News Market Reaction – WETH
In the May 18 session, WETH gained 6.00%, reflecting a notable positive market reaction. Argus tracked a peak move of +12.4% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 14 | Annual results 2025 | Positive | +11.3% | Reported FY2025 revenue and net income growth with strong cash and equity. |
| Nov 12 | Q3 2025 earnings | Positive | +10.7% | Nine-month 2025 revenue, gross profit, and net income all increased year over year. |
| Oct 09 | H1 2025 earnings | Positive | +10.7% | First-half 2025 showed higher revenue, margin expansion, and strong cash reserves. |
| Oct 07 | Q1 2025 earnings | Positive | +6.9% | Q1 2025 delivered sharp net income growth and margin recovery with higher units. |
| Jun 27 | Nasdaq extension | Positive | +7.6% | Received Nasdaq filing extension while emphasizing strong cash and perceived undervaluation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings updates have consistently been followed by positive price reactions, indicating the market has historically rewarded Wetouch’s profitability and balance sheet strength.
Over the past year, Wetouch has repeatedly delivered growing revenue and net income, alongside strong cash reserves and rising equity. Prior earnings reports for Q1 2025, H1 2025, Q3 2025, and FY 2025 all highlighted margin improvement, higher profitability, and progress on the Chengdu facility. The current Q1 2026 release continues this narrative with further revenue growth, higher EPS, and sustained cash strength, reinforcing the trajectory shown in earlier financial updates.
Key Terms
projected capacitive touchscreens technical
smart cockpit technical
human-machine interface systems technical
AI-driven human-machine collaboration interfaces technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Basic and Diluted Earnings Per Share Reached
CHENGDU, CN / ACCESS Newswire / May 18, 2026 / WeTouch Technology Inc. (NASDAQ:WETH) ("WeTouch" or the "Company"), a company focused on the research, development, manufacturing, sales and servicing of medium- to large-sized projected capacitive touchscreens and related touch display products, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter Fiscal Year 2026 Highlights
Revenue:
$16.3 million , up6.5% from$15.3 million in Q1 2025. Growth driven by higher average selling prices, slight increase in unit volume, and favorable RMB/USD exchange rate effects.Gross Profit:
$5.8 million , compared with$5.6 million in Q1 2025. Gross margin was35.7% , slightly down from36.9% in the same period last year, primarily due to higher labor and material costs.Net Income:
$3.9 million , an increase of50% from$2.6 million in Q1 2025.Earnings Per Share: Basic and diluted earnings per share were
$0.32 , compared with$0.21 in Q1 2025, representing an increase of52.4% year-over-year.Units Shipped: 763,325 units, essentially flat compared to 762,545 units in Q1 2025.
Cash and Cash Equivalents:
$120.5 million , up from$118.4 million as of December 31, 2025.Shareholders' Equity:
$143.2 million , up from$137.4 million as of December 31, 2025.
Management Commentary
"We achieved solid revenue growth and a significant increase in net income in the first quarter of 2026," said Zongyi Lian, Chief Executive Officer of WeTouch Technology Inc. "Basic and diluted earnings per share increased
Mr. Lian continued, "Construction of our new Chengdu production facility remains underway, with completion expected by the first half of 2027 and production to commence by the end of 2027. The significant increase in earnings per share reflects improved profitability on a per-share basis, while our strong cash position and disciplined operations provide the Company with the flexibility to execute on growth initiatives, invest in product and capacity expansion, and support the creation of long-term shareholder value over time."
Market and Business Overview
China Market: Revenue from the PRC reached
$11.0 million , representing67.5% of total revenue, driven by strong demand for high-end touchscreens in automotive and industrial segments.Overseas Market: Revenue from international markets totaled
$5.3 million , or32.5% of total revenue, reflecting modest growth led by automotive, gaming, and industrial control touchscreen segments, with Taiwan and South Korea as key contributors.Product Mix: The Company continued to shift production toward higher-margin, high-end touchscreens, including automotive, industrial control, POS, medical, and multifunctional printer applications.
Outlook
Looking ahead, WeTouch expects continued demand in its established markets, including industrial automation, automotive and smart cockpit displays, self-service terminals, and other specialized touchscreen applications. At the same time, the Company is actively exploring the broader intelligent technology market, such as smart interactive terminals, AI-driven human-machine collaboration interfaces, and intelligent device control systems, representing significant long-term growth potential at the intersection of technology and human-machine interaction. WeTouch will continue to focus on customer expansion, operational efficiency, and technology development, while optimizing its product portfolio to support sustainable long-term growth and capture opportunities in emerging smart applications.
About Wetouch Technology Inc.
Wetouch Technology Inc. is at the forefront of providing premium touch display solutions, dedicated to reshaping human-machine interaction across diverse industries. With a relentless focus on innovation and customer satisfaction, Wetouch consistently delivers cutting-edge technology and unparalleled performance in touch display solutions globally.
For additional information, please visit the Company's website at: http://en.usa-Wetouch.com/
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Wetouch's control, which may cause Wetouch's actual results, performance or achievements to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Wetouch's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Wetouch does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Investor and Media Contact:
Email: Michaelw@wetouch.com.cn
SOURCE: Wetouch Technology Inc.
View the original press release on ACCESS Newswire