FANUC raised its first-half earnings forecast and announced a ¥50 billion share buyback. In response, expectations are growing that buying interest in physical AI-related stocks will increase during the morning session.
In the Japanese market on the morning of the 26th, investors are expected to look for opportunities to buy on dips while assessing trends in semiconductor and AI-related stocks, with factors including higher crude oil prices and rising interest rates also cited as a backdrop. In light of movements in US markets and the futures market, some AI-related stocks may see buying aimed at a technical rebound.
For the first half of the fiscal year ending March 2027, FANUC posted revenue of ¥473.7 billion and operating profit of ¥116.6 billion, representing substantial profit growth, and revised its full-year forecast up to revenue of ¥1.0137 trillion, operating profit of ¥240.7 billion and net income of ¥228.3 billion. It also announced a share buyback of 10 million shares, equivalent to approximately 1.08% of issued shares, with a ¥50 billion limit. The acquisition period was set from 26 October to 30 April next year.
As earnings announcements gather pace, expectations for growth in physical AI-related stocks may increase, while FANUC's enhanced shareholder returns are being cited as a focus for the market. During the morning session, developments at Makino Milling Machine, including preparations to expand production capacity, a sharp increase in orders and signs of easing lead times, also drew attention.
The performance of Takara Holdings, System Location, Rasa Corporation, Medipal Holdings, Kawasaki Kisen Kaisha, KOA, Nagano Keiki and Bank of the Ryukyus, which announced their earnings late last week, was also cited as a matter of market interest.