I maintain a 'Buy' rating for Tuya after assessing its results and outlook. TUYA's revenue growth accelerated from +8% in 1Q2026 to +16% for 2Q2026; the actual topline was equivalent to a 5.8% beat. My take is that it should continue to deliver a sales expansion of over +10% going forward, given positive leading indicators like developer base expansion.
Tuya NYSE: TUYA reported second-quarter 2026 revenue of $92.9 million, up 16% from a year earlier and accelerating from 8.3% growth in the first quarter, as its platform-as-a-service business and smart home and robot products posted double-digit gains.
Tuya is rated bullish with a $3.26 target, implying 31% upside, driven by accelerating AIoT adoption and a strong cash position. TUYA's high single-digit revenue growth, expanding EBIT margin (9.2% vs. -2% YoY), and SaaS segment outperformance support the investment thesis. Gross margin pressure from semiconductor supply chain volatility is viewed as transitory, with SaaS growth expected to offset future hardware cyclicality.
| Transportation Infrastructure Industry | Industrials Sector | Xueji Wang CEO | XSTU Exchange | US90114C1071 ISIN |
| CN Country | 1,441 Employees | 21 Apr 2026 Last Dividend | - Last Split | 18 Mar 2021 IPO Date |
Tuya Inc., established in 2014 and headquartered in Hangzhou, the People's Republic of China, is a prominent provider of Internet of Things (IoT) cloud development platforms, both within China and on a global scale. The company specializes in offering robust platform-as-a-service (PaaS) solutions aimed at enabling brands, original equipment manufacturers (OEMs), and developers to swiftly develop, launch, manage, and monetize software-enabled smart devices and services. Tuya Inc. has extended its offerings to industry-specific software-as-a-service (SaaS), facilitating businesses in various sectors to deploy, connect, and effectively manage diverse arrays of smart devices. Catering to multiple industries including smart home, healthcare, education, agriculture, outdoors and sport, and entertainment, Tuya strives to simplify the IoT integration process for businesses and developers, aiming to enhance overall user experiences in the IoT domain.