TOWA, a major semiconductor manufacturing equipment maker, reported strong results for April–June 2026, with revenue nearly doubling year on year. However, its share price fell sharply the day after the earnings announcement. A conservative full-year outlook and profit-taking were cited as possible factors.
TOWA reported consolidated revenue of ¥16.183 billion for April–June 2026, up 100.3% year on year, operating profit of ¥2.212 billion, ordinary profit of ¥2.332 billion and net income of ¥1.657 billion. The company had posted a loss in the previous fiscal year due to the impact of tariff policy, but returned to profitability this time. Quarterly orders received reached a record high. By segment, the semiconductor manufacturing equipment business accounted for most of revenue, with particularly strong orders for molding equipment.
Although the earnings results exceeded market expectations, the stock was sold heavily on the following business day. The decline may have reflected a combination of a pullback from the year-to-date high and speculation surrounding a conservative revision to the full-year forecast. Investors are watching whether the tailwind from capital investment in AI and data centers will continue. While an improvement in company-wide profit levels was evident, the share price did not respond straightforwardly.
The core semiconductor manufacturing equipment business drove revenue by capturing demand for molding equipment, while the medical devices business maintained a high operating margin on solid demand. The laser processing equipment business, meanwhile, kept its operating loss small despite the impact of sluggish investment. Progress against the full-year forecast is viewed as conservative, and attention may turn to a possible revision in the second-quarter results.