Will the recovery in demand from AI and data centers continue through Q3?

FY2026-Q1 revenue was ¥1,476.844 million and operating profit was ¥154.356 million, down 10.2% and 26.9%, respectively, year on year. By contrast, FY2026-H1 revenue recovered to ¥3,505.129 million and operating profit to ¥426.472 million, up 10.3% and 19.0%, respectively, year on year. Simply deducting Q1 results implies standalone Q2 revenue of approximately ¥2,028 million and operating profit of approximately ¥272 million, suggesting that the H1 recovery was driven by a recovery in Q2.

The company said that semiconductor investment for AI and data centers was expanding rapidly and that orders remained strong. In FY2025, however, AI-related demand increased sharply in H1 before temporarily slowing in H2 against the backdrop of US tariff policy and US-China trade friction. It is therefore too early to conclude, based solely on the H1 increase in profit, that the company has entered a structural growth phase. Q3 will need to confirm the continuity of orders and their conversion into shipments.

The comparative period, cumulative FY2025-Q3, recorded revenue of ¥4,363 million and operating profit of ¥417 million. As of FY2026-H1, revenue had reached ¥3,505 million and operating profit ¥426 million, with operating profit already exceeding the cumulative figure for the previous year's Q3. In Q3, it will be important to see whether revenue also exceeds ¥4,363 million, so that the recovery in revenue accompanies the growth in profit.

The operating margin also rose from approximately 11.3% in FY2025-H1 to approximately 12.2% in FY2026-H1. The interim materials do not sufficiently break down whether this resulted from an increase in higher-value-added products for AI and data centers or from product mix and temporary cost factors. In Q3, the focus will be on the volume and value of AI-related orders, delivery schedules, product mix and progress against the full-year forecast.