Whether AI-led high growth will continue in FY2027-H1

First-quarter net sales were ¥114.308 billion, operating income was ¥49.033 billion, ordinary income was ¥48.441 billion and net income attributable to owners of the parent was ¥34.221 billion. Year on year, net sales increased 27.1%, operating income 42.2%, ordinary income 42.5% and net income 44.0%, with profit growth outpacing sales growth. The operating margin was also high at 42.9%, with the progress of acceptance inspections for machinery and equipment and shipments of high-value-added products serving as the main channels for converting AI-related demand into earnings.

The cumulative second-quarter forecasts newly provided this time are ¥242.8 billion in net sales, ¥104.9 billion in operating income, ¥104.8 billion in ordinary income and ¥73.8 billion in interim net income attributable to owners of the parent. Simply subtracting first-quarter results implies that the standalone second quarter would require net sales of ¥128.492 billion, operating income of ¥55.867 billion, ordinary income of ¥56.359 billion and net income of ¥39.579 billion. This translates into a standalone second-quarter operating margin of approximately 43.5%, implying an assumption that exceeds the first quarter's 42.9%.

FY2026-H1 results were net sales of ¥194.537 billion and operating income of ¥78.871 billion, making the company's forecasts equivalent to year-on-year growth of 24.8% in net sales and 33.0% in operating income. FY2026 full-year net sales of ¥436.889 billion and operating income of ¥184.989 billion also reached record highs. The current H1 forecasts therefore assume that demand for AI-related capital investment and high-performance semiconductors will continue, rather than reflecting a temporary quarterly rebound.

At the same time, because customer investment appetite can fluctuate significantly over a short period and demand is difficult to forecast, the company discloses forecasts only through the following quarter rather than for the full year. In FY2026, demand for data centers, advanced logic and HBM was strong against a backdrop of generative AI, while demand for PCs and smartphones was recovering gradually and demand for power semiconductors remained weak because of the slowdown in EV demand. At the next results announcement, it will be necessary to assess not only whether high levels of AI-related investment are continuing, but also whether demand is spreading to PCs, smartphones and power semiconductors, and whether progress in acceptance inspections continues to support revenue recognition.