FY2027 Q1 upside to be confirmed in H1: earnings progress is ahead of revenue

In Q1 from April to June 2026, revenue was ¥98,656 million, operating income was ¥3,872 million, ordinary income was ¥3,665 million, and net income attributable to owners of the parent was ¥2,787 million. Year on year, revenue increased 19.8%, operating income 161.3%, ordinary income 203.5%, and net income 16.9%, indicating improvement not only at the revenue level but also at the operating and ordinary income levels.

The full-year forecasts announced in Q1 are revenue of ¥370,000 million, operating income of ¥12,000 million, ordinary income of ¥11,000 million, and net income of ¥7,500 million. Q1 progress rates against these forecasts are therefore 26.7%, 32.3%, 33.3%, and 37.2%, respectively. Although the company’s plan cannot be treated as a simple quarterly allocation, the fact that earnings progress is more than 5 percentage points ahead of revenue progress is an important starting point to verify in the H1 results.

By business, the Device business reported revenue of ¥79,804 million and segment profit of ¥3,023 million, up 22.6% and 172.6%, respectively, from the same period a year earlier. The Solutions business also reported revenue of ¥18,852 million and segment profit of ¥848 million, up 9.4% and 127.6%, respectively. Accordingly, the increase in company-wide earnings has been confirmed in both businesses rather than being a recovery confined to one business, although the rate of earnings growth is substantially higher than the rate of revenue growth.

The company attributes the earnings increase to progress in optimizing inventories in the semiconductor and device fields, expanding demand for memory semiconductors, broader sales of a wide range of products, and resilient corporate IT investment, particularly in AI. However, it has not disclosed the increase in profit by factor, the increase in gross profit attributable to product-mix changes, or the breakdown of selling, general and administrative expenses by business. In H1, the key question is whether the increase in operating income reflects higher volumes from a simple recovery in demand or a structural improvement driven by a higher mix of high-margin projects, to be assessed alongside revenue and profit by segment.