The focus for FY2027-H1 is whether the 1Q upside is temporary or strong enough to drive an upward revision to full-year guidance

Revenue in FY2027 1Q was ¥395,578 million, up 286.4% year on year. Operating profit was ¥22,282 million, ordinary profit was ¥19,741 million and net profit attributable to owners of the parent was ¥14,520 million, with all three profit measures remaining in the black. In addition to the sharp increase in revenue, the operating margin rose from approximately 1.8% a year earlier to approximately 5.6%, indicating that the increase in revenue was accompanied by improved profitability.

The company’s full-year forecasts are revenue of ¥1,400,000 million, operating profit of ¥48,900 million, ordinary profit of ¥40,800 million and net profit of ¥30,000 million. Against these forecasts, 1Q progress was approximately 28.3% for revenue, 45.6% for operating profit, 48.4% for ordinary profit and 48.4% for net profit. As profit is progressing well ahead of revenue, the H1 results will need to distinguish between profit being brought forward by higher prices and more sustainable profit driven by higher volumes and an improved product mix.

Full-year revenue increased from ¥370,676 million in FY2024 to ¥421,671 million in FY2025 and ¥633,668 million in FY2026. The FY2027 plan targets a further increase to ¥1,400,000 million. The increase from FY2026 to the FY2027 forecast is ¥766,332 million, equivalent to growth of approximately 120.9%. Accordingly, H1 analysis should examine not only progress to date but also how conservative the assumptions for demand, pricing and supply in the second half are.

At the next results announcement, the key points will be whether cumulative H1 revenue and profit exceed half of the full-year forecasts, whether the 1Q margin is sustained and whether operating profit can be maintained even if the rise in memory prices pauses. In addition, the 1Q summary report did not include a quarterly cash flow statement, so operating profit progress cannot be directly reconciled with cash collection progress. H1 analysis should therefore also cover the maintenance or revision of full-year forecasts, product-level revenue, and changes in inventories and trade receivables.