Delta Electronics disclosed January revenue of NT$49.7 billion, marking a 7% decrease from the previous month but a 33% rise compared with January of last year. The companys month-to-month performance reflected divergent trends across its primary businesses.
The Power segment recorded 2% growth versus December, driven by steady server power sales and an improved performance in the smartphone component of that business. Those areas provided support for the segment amid broader cyclicality.
By contrast, the Infrastructure division experienced a 23% decline from the prior month, although it remained 37% higher year-over-year. Company commentary points to lower shipments of liquid-cooling sidecar CDU systems as the main driver of the monthly drop, with additional, smaller effects from slower deliveries of networking and telecom-related products.
Delta has noted that white-box, project-based shipments of liquid-cooling side-car CDU systems tend to generate month-to-month revenue volatility. That project orientation can produce uneven timing of recognitions, creating sharp sequential swings in Infrastructure revenue when large systems ship or are delayed.
Investment bank Morgan Stanley has adjusted its outlook for Deltas liquid cooling business, now forecasting a 25% to 30% quarter-over-quarter decline in liquid-cooling revenue for the first quarter of 2026. Despite the anticipated pullback, the bank still expects liquid cooling to represent approximately 9% to 10% of overall revenue.
Following the softer-than-expected January results, Morgan Stanley also revised its aggregate quarterly view for Delta Electronics, now projecting a 3% quarter-over-quarter revenue decline in Q1 2026 rather than the flat quarter it had previously modeled. The banks update assumes a mild revenue decrease in February, with growth in server power and liquid cooling offsetting most of the impact from fewer working days. Morgan Stanley further expects sequential expansion across all segments in March under its scenario.
Under Morgan Stanleys revised sequence of monthly assumptions, Delta would still post a roughly 32% year-over-year revenue increase for the first quarter of 2026. The projection therefore retains a strong annual growth profile despite the near-term sequential pressure.
Summary of the situation: Delta delivered robust year-over-year revenue gains in January, though sequential weakness concentrated in Infrastructure and liquid-cooling shipments prompted an updated, slightly more conservative near-term outlook from Morgan Stanley. The mixed signals reflect both product-specific project timing and segment-level strength in server power and smartphone-related sales.