Will the sharp expansion in AI demand in FY2027-Q1 continue through FY2027-H1?

In FY2026-H1, revenue fell by ¥118.3 billion year on year to ¥791.1 billion, despite an increase in capacity-based shipments, owing to lower average selling prices and adverse foreign-exchange effects. Operating profit also deteriorated by ¥161.1 billion year on year to ¥130.8 billion, confirming that higher capacity demand does not necessarily translate directly into profits when pricing conditions are unfavorable. In FY2027-H1, it will be necessary to examine not only simple revenue growth but also the separate contributions of price and volume.

In contrast, FY2026 full-year revenue recovered to ¥2,337.6 billion, operating profit to ¥870.4 billion, and profit attributable to owners of the parent to ¥554.5 billion. FY2027-Q1 revenue was ¥1,767.1 billion, operating profit was ¥1,270.0 billion, and profit attributable to owners of the parent was ¥842.2 billion, resulting in a quarterly operating margin of approximately 71.9%. Data-center demand, particularly for generative-AI applications, as described by the company, appears to have contributed substantially to the FY2027-Q1 earnings level. However, it is not yet possible to determine whether this margin reflects a temporary price increase or a sustainable level driven by product mix and supply constraints.

The FY2027-Q1 financial summary does not provide an earnings forecast for FY2027-H1 or quantitative revenue breakdowns by end use. In addition, because the company has a single memory business segment, the contribution of AI-related demand cannot be identified from ordinary segment profit. At the next results announcement, key points will include whether second-quarter revenue can remain close to first-quarter revenue of ¥1,767.1 billion, how far the operating margin declines, and whether the company discloses the mix of data-center and enterprise SSDs versus PCs and smartphones, as well as average selling prices and capacity-based shipments.