Socionext announced its consolidated results for the second quarter of FY2026. Revenue was ¥60.4 billion, up 14.7% year on year, while net income was ¥2.1 billion, an increase of more than 13%, and it also raised its full-year forecast.
Socionext announced its results for the second quarter from July to September 2026, reporting revenue of ¥60.4 billion, operating profit of ¥2.3 billion and net income of ¥2.1 billion, up 14.7%, flat and up 31.3%, respectively, year on year. The previous quarter was loss-making due to shipment delays for automotive applications, but the company returned to profitability after shipments resumed. Product gross margin declined due to changes in the product mix, although total revenue increased. By breakdown, communications-related revenue declined, while automotive and industrial revenue increased. NRE revenue, primarily from the data center and networking fields, rose 28.4% to ¥10.2 billion.
For the first half of FY2026, cumulative revenue was ¥99.4 billion, up 14% year on year, operating profit was ¥1.7 billion, down 55.7%, and net income was ¥1.5 billion, down 25.9%. Sales expansion in the automotive and industrial markets boosted revenue, while profit continued to decline due to lower gross margins and higher research and development and pre-production costs.
The company had planned to leave its full-year earnings forecast unchanged, but announced an upward revision in response to the yen's depreciation. Full-year FY2026 revenue is expected to be ¥225 billion, up 4.7%, operating profit ¥15.5 billion, up 10.7%, and net income ¥10.5 billion, up 5%. Representative Director and Chairman Koizuka Masahiro (肥塚 雅博) said that new mass production of products for automotive applications and data centers in North America is expected to begin in the second half, and expressed the view that results could exceed the initial forecast.