Can first-half high growth be replicated in the second half?

Revenue for the first half of the fiscal year ending December 2026 was ¥82,495 million, up 47.8% year on year, operating profit was ¥18,292 million, up 64.7%, and profit for the interim period attributable to owners of the parent was ¥12,404 million, up 70.9%. Operating margin reached 22.2% on a simple calculation, indicating higher revenue and profit above the level of the previous first half. Revenue of ¥40,319 million and operating profit of ¥8,413 million were recorded in the first quarter alone, so the company is entering a phase in which FY2026-Q3 will test whether first-half growth was a one-off increase concentrated in a single quarter.

The full-year forecasts remain unchanged at revenue of ¥167,600 million, operating profit of ¥26,000 million and profit for the year of ¥16,800 million. Simply subtracting first-half results leaves required second-half revenue of ¥85,105 million and operating profit of ¥7,708 million. Revenue was only 49.2% of the full-year forecast at the first-half stage, while operating profit had reached 70.4%. In 3Q, it will therefore be necessary to distinguish whether profit is running ahead because of seasonality or high margins in the first half, or whether this indicates potential upside to the full-year forecast.

In the third quarter, we will look at the 3Q cumulative progress rates for revenue and operating profit against the full-year forecasts, as well as how much of the first-half operating margin of 22.2% is maintained. The company’s full-year operating margin forecast is 15.5%, a gap of 6.7 percentage points from the first-half result. An important question is whether this gap can be explained by factors identified by the company, including second-half upfront investment, higher semiconductor procurement prices, tariffs and foreign exchange, and seasonality.

The new consolidation of センクシア also made a significant contribution to first-half revenue growth. Accordingly, in 3Q we will check whether the company separately discloses not only consolidated revenue growth, but also revenue and business EBITDA for existing businesses excluding センクシア, unit sales related to audio equipment, and the impact of customer production adjustments in the components and materials business. Even if the full-year forecast is left unchanged, the most important issue in the next results announcement will be which businesses are expected to generate the ¥7,708 million of operating profit required in the second half.