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Financial results presentation6723Renesas Electronics CorporationElectrical Equipment and Precision Instruments

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026

In Q1 FY2026, revenue and operating profit significantly exceeded the year-earlier period, and the operating margin also improved. For Q2, the company has disclosed a range forecast centered on revenue of ¥388.0 billion, but has not disclosed a full-year earnings forecast.

Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
416
¥100 million (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,723 100 million+20.6%
Operating profit¥1,254 100 million
Net income¥1,029 100 million profit for the year attributable to owners of the parent
Gross Profit Margin59.2%
Operating profit margin33.7%
Selling, general and administrative expenses¥403 100 million selling, general and administrative expenses and other expenses
Results for the three months of the current quarter
Revenue
¥3,723 100 million
Operating profit
¥1,254 100 million
Profit for the period attributable to owners of the parent
¥1,029 100 million
EBITDA
¥1,462 100 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 results exceeded the Q1 forecast for revenue, gross margin and operating margin
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Reconciliation of operating profit from Non-GAAP to GAAP
Former Intersil PPA impact-31
Former IDT PPA impact-67
Former Dialog PPA impact-101
Former Altium PPA impact-58
Other PPA impact-10
Share-based compensation-82
Timing business adjustments52
Other-52
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY
156 JPY per EUR Q2 FY2026 forecast
EUR/JPY
180 JPY per EUR Q2 FY2026 forecast
New initiatives
  • R-Car V4H adopted for Toyota's new RAV4
  • Launched a 650V-rated bidirectional GaN switch
  • Radiation-hardened IC adopted for NASA's crewed lunar exploration mission Artemis II
  • Began general availability of the Renesas 365 electronics development platform
Key KPIsA metric the company considers important as a management benchmark.
Group ARR
Year on year against the same period last year+8%
Segment results
Automobiles
Revenue
¥1,717 100 million
Revenue year-on-year change (%)10.6
Operating profit
¥618 100 million
Year-on-year increase in operating profit156
Industrial, Infrastructure and IoT
Revenue
¥1,990 100 million
Revenue year-on-year change (%)32
Operating profit
¥642 100 million
Year-on-year increase in operating profit320
Other
Revenue
¥92 100 million
Revenue year-on-year change (%)239.5
Operating profit
¥47 100 million
Year-on-year increase in operating profit52
Financial targets
Gross D/E ratio
0.47 times
Net D/E ratio
0.37 times
Equity ratio attributable to owners of the parent
60.1 %
Capital expenditures
¥188 100 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥3,723 100 million (YoY +20.6%)
Operating profit¥1,254 100 million
Net income¥1,029 100 million (profit for the year attributable to owners of the parent)
Gross Profit Margin59.2%
Operating profit margin33.7%
Selling, general and administrative expenses¥403 100 million (selling, general and administrative expenses and other expenses)
Results for the three months of the current quarterRevenue ¥3,723 100 million / Operating profit ¥1,254 100 million / Profit for the period attributable to owners of the parent ¥1,029 100 million / EBITDA ¥1,462 100 million
Self-assessment against the planQ1 results exceeded the Q1 forecast for revenue, gross margin and operating margin
Segment resultsAutomobiles Revenue ¥1,717 100 million / Revenue year-on-year change (%) 10.6 / Operating profit ¥618 100 million / Year-on-year increase in operating profit 156 / Industrial, Infrastructure and IoT Revenue ¥1,990 100 million / Revenue year-on-year change (%) 32 / Operating profit ¥642 100 million / Year-on-year increase in operating profit 320 / Other Revenue ¥92 100 million / Revenue year-on-year change (%) 239.5 / Operating profit ¥47 100 million / Year-on-year increase in operating profit 52
Breakdown of Factors Affecting the ChangeReconciliation of operating profit from Non-GAAP to GAAP Former Intersil PPA impact -31 / Former IDT PPA impact -67 / Former Dialog PPA impact -101 / Former Altium PPA impact -58 / Other PPA impact -10 / Share-based compensation -82 / Timing business adjustments 52 / Other -52
Key KPIsGroup ARR value Not disclosed / Year on year against the same period last year +8% / Front-end utilization rate Not disclosed / Company inventory DOI Not disclosed / Distribution-channel inventory WOI Not disclosed
Assumptions Underlying the Business OutlookUSD/JPY 156 JPY per EUR (Q2 FY2026 forecast) / EUR/JPY 180 JPY per EUR (Q2 FY2026 forecast)
Financial targetsGross D/E ratio 0.47 times / Net D/E ratio 0.37 times / Equity ratio attributable to owners of the parent 60.1 %
Capital expenditures¥188 100 million
New initiativesR-Car V4H adopted for Toyota's new RAV4, Launched a 650V-rated bidirectional GaN switch, Radiation-hardened IC adopted for NASA's crewed lunar exploration mission Artemis II, Began general availability of the Renesas 365 electronics development platform
Items this document does not state (14)
Ordinary incomeFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company attributed the improvement in earnings to a better product mix, yen depreciation, lower manufacturing costs, higher gross profit and lower operating expenses.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026 | Renesas Electronics Corporation (6723) timely disclosure | Komori