E Ink Holdings, the Taiwanese developer of electronic paper display technology, reported second-quarter earnings that exceeded analyst expectations but reduced its 2026 revenue outlook, citing weaker-than-anticipated demand and ongoing inventory corrections across the supply chain.
The company posted a net profit of T$1.2 billion ($37.7 million) for the quarter ended June 30, up 15% year-over-year and surpassing the T$980 million consensus estimate compiled by Refinitiv. Revenue rose 8% to T$4.1 billion, also exceeding the T$3.9 billion forecast.
Despite the positive short-term results, E Ink revised its 2026 revenue target downward, now expecting growth in the mid-single digits compared with a previous forecast of high-single-digit expansion. Management attributed the adjustment to prolonged softness in end-market demand, particularly in consumer electronics, and continued adjustments to distributor inventories.
Chief Financial Officer Lin Chih-chung told analysts on an earnings call that while order visibility remains stable, the pace of recovery in key segments such as e-readers and smart labels has been slower than expected. The company also noted that pricing pressure from competitors and higher material costs had compressed margins, though operating profit still increased 12% year-over-year to T$850 million.
E Ink maintained its 2024 guidance, projecting revenue between T$15.5 billion and T$16 billion, which aligns with analyst expectations. The company’s shares, listed on the Taipei Exchange under ticker 8069, were down 3.2% in after-hours trading following the outlook revision.
Analysts at Fubon Securities said the outlook cut reflects broader challenges in the electronic display sector, where demand for low-power screens has softened amid macroeconomic uncertainty and shifting consumer preferences. The firm maintained a neutral rating on the stock with a price target of T$18.50.
E Ink’s technology powers devices such as Amazon’s Kindle and Barnes & Noble’s Nook e-readers, as well as industrial applications like electronic shelf labels and smart badges.
