First-half results remain on track to meet the full-year plan on AI server demand; focus shifts to second-half repeatability

First-half FY2026 revenue was ¥139.668 billion, up 25.1% year on year. Operating income was ¥28.854 billion, up 45.4%; ordinary income was ¥30.272 billion, up 48.5%; and interim net income attributable to owners of the parent was ¥20.409 billion, up 49.9%. The operating margin calculated from revenue and operating income was approximately 20.7%, about 2.9 percentage points higher than the approximately 17.8% recorded in the same period last year. Profit growth outpaced revenue growth, indicating that the increase in volume and demand also improved profitability in the first half.

In its second-quarter results presentation, the company raised its full-year forecasts following first-half results above plan. The new forecasts are revenue of ¥291.0 billion, operating income of ¥60.6 billion, ordinary income of ¥63.0 billion, net income attributable to owners of the parent of ¥42.6 billion, and EBITDA of ¥72.2 billion. First-half progress against the full-year forecasts was approximately 48.0% for revenue and 47.6% for operating income, not significantly below the simple 50% benchmark after six months. Progress against the first-half plan, however, was 111.7% for revenue and 118.7% for operating income. How much of this first-half outperformance can be maintained in the second half will be the central issue at the next results announcement.

The company attributed the increase in revenue and profit to semiconductor demand exceeding the year-earlier level as demand for AI servers for data centers expanded. The full-year plan also assumes an average exchange rate of ¥155 to the dollar for FY2026 and for the second half, so both external demand and yen depreciation are supporting results. The current presentation does not disclose, however, the amount of revenue attributable to AI server demand, shipment volumes, product prices, or contributions by customer.

At the next, third-quarter results, investors will need to review nine-month cumulative revenue and operating income, progress against the full-year forecasts, the exchange-rate assumptions for the second half, and demand and adoption trends related to AI servers. In particular, the focus will be on disclosures that distinguish whether the high first-half operating margin reflects not only volume-driven demand effects but also a higher-value product mix, inventory recognition, or temporary currency effects.