Tuya delivered inline 1Q26 revenue and operating profit while missing on net profit due to FX losses. The firm is pivoting to AI-native IoT services, supporting a maintained Buy rating despite a lowered $3.10 price target.
Key Takeaways
- 1.Tuya reported 1Q26 revenue and non-GAAP operating profit in line with expectations, though EPS missed due to foreign exchange losses.
- 2.The company is strategically pivoting toward AI-native IoT solutions, including renaming business segments to reflect this AI evolution.
- 3.Gross margins are under pressure due to rising memory chip costs, which Tuya is managing via strategic inventory procurement and price pass-throughs.
Table of Contents
- Management call highlights
- Forecast changes and valuation
- Investment Thesis - Tuya
- Price Target Risks and Methodology - Tuya
- Disclosure Appendix
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Authors
Timothy ZhaoRonald Keung, CFAEunice Liu
Securities
TUYA
Themes
AI-native IoT TransitionSupply Chain Cost Management
Regions
Asia PacificEuropeLatin AmericaChinaSingapore