At its briefing on results for the second quarter of the fiscal year ending March 2027, Tokyo Electron reported revenue of ¥1.667 trillion, operating profit of ¥506.7 billion and interim net income attributable to owners of the parent of ¥376.9 billion, all record highs for both the first half and the quarter. Robust capital investment in advanced semiconductor manufacturing equipment, driven by growing AI demand, supported results.
For the second quarter of the fiscal year ending March 2027, revenue rose 41.3% year on year to ¥1.6674 trillion, operating profit increased 67.2% to ¥506.7 billion, and interim net income attributable to owners of the parent rose 56.0% to ¥376.9 billion. On a first-half basis, revenue, profit and profit margin all reached record highs.
On a quarterly basis, revenue was ¥935.0 billion, up 27.7% from the previous quarter, operating profit was ¥295.3 billion, up 39.7%, and the operating margin was 31.6%, an improvement of 2.7 percentage points. Growth was driven by expanding demand for AI servers used in data centers. Revenue from new equipment for DRAM increased 45% from the previous quarter, while the non-memory share was maintained at 56%.
By region, China’s share rose to 36.4%, while demand from South Korea and Taiwan also remained firm. Field solutions continued to grow in parts and services for the sixth consecutive quarter, with first-half revenue reaching ¥191.0 billion.
The full-year outlook was newly disclosed, with revenue projected at ¥3.7 trillion and operating profit at ¥1.169 trillion, both record highs. The company said it had secured capacity for second-half revenue of more than ¥2 trillion. The WFE market is expected to reach approximately $160 billion in CY2026 and grow to more than $210 billion in CY2027, while full-year revenue from new SPE equipment is projected to increase 59% from the previous fiscal year.
Investors are focused on the potential for AI demand to spread beyond GPUs and HBM to CPUs, DRAM, NAND and SSDs. Risks cited include geopolitical and foreign-exchange effects, trends in the China sales ratio and intensifying competition.