AEM Holdings reported a net profit of approximately S$14.3 million for the first quarter of 2026, up 329.4% year-on-year, driven mainly by strong demand from fabless AI and high-performance computing customers [1, 2, 3, 4, 5]. Revenue climbed 35.8% to about S$116.9 million, reflecting growth across core segments [1, 2, 3].

The company's test cell solutions segment saw its revenue rise 72% year-on-year to S$88.1 million, making up 75.4% of total revenue. Meanwhile, contract manufacturing revenue declined 15.7% to S$27.3 million due to weaker demand in the oil and gas sector [1, 3].

AEM’s net profit margin expanded substantially to 12.3% from 3.9% in the prior year quarter, reflecting improved operational efficiency and product mix [3]. CEO Samer Kabbani described the results as "the start of a multi-year earnings upcycle for AEM, one grounded in structural industry change rather than cyclical recovery" [3].

The chip demand supporting growth is linked to increasing complexity and power/thermal challenges in next-generation AI computing devices, prompting higher test coverage requirements and advanced packaging solutions [1, 2, 3]. Amanda Tan, an analyst at DBS Group Research, noted, "AEM is a pioneer in providing system level test (SLT) solutions and is currently around one generation ahead of its competitors. Given its technological superiority, we believe AEM is well positioned to ride on the growing SLT market" [4].

Following the earnings release on May 13, AEM shares surged 10.74% to close at S$8.35. Trading continued strongly on May 14, with shares rising over 14% intraday and closing 18.7% higher at S$9.91 on heavy volume of 17.1 million shares, extending year-to-date gains to over 400% [1, 2, 4, 5]. DBS Group Research maintained its buy rating on AEM and raised its target price from S$8.90 to S$11.80 [2, 4, 5].

AEM increased its full-year 2026 revenue guidance by 20%, aiming for between S$550 million and S$600 million [3, 4, 5]. Meanwhile, Hong Hai Technology (Foxconn) also reported Q1 net profit growth of 19% year-on-year, supported by AI demand. Hong Hai’s Q1 revenue rose 30%, with plans to expand its electric vehicle and robotics business lines [6].

AEM’s next major update will be its full-year 2026 results, expected after it delivers on the raised revenue guidance and market demand trends for AI-driven chip testing.