【Tokyo Electron FY2027 Q2 Earnings Briefing】Record first-half sales of ¥1.6674 trillion and operating profit of ¥506.7 billion; full-year operating profit set to exceed ¥1 trillion for the first time

According to Tokyo Electron's financial results for the second quarter of the fiscal year ending March 2027, revenue rose 41.3% year on year to ¥1.6674 trillion, while operating profit grew by around 69% to ¥506.7 billion, setting records for both revenue and profit on a first-half basis. Quarterly revenue was ¥935 billion and operating profit was ¥295.3 billion, both significantly above the previous quarter.

At the earnings presentation, the company indicated that the spread of AI is expanding semiconductor demand. Revenue from new equipment for DRAM applications increased by approximately 45% from the previous quarter, while the non-memory share was maintained at 56%. Research and development expenses were ¥85.2 billion as the company continued to invest aggressively, contributing to improved margins.

For the full year, the company expects revenue of ¥3.7 trillion and operating profit of ¥1.169 trillion, marking the first time full-year profit is expected to exceed ¥1 trillion. Revenue of ¥2.0325 trillion is expected in the second half, while full-year sales of new SPE equipment are planned at ¥2.8257 trillion, up 59% from the previous fiscal year. Research and development expenses are projected at ¥335 billion and capital expenditures at ¥190 billion. The Miyagi Production Innovation Center is scheduled for completion in summer 2027.

The company also revised up its outlook for the WFE market, expecting it to exceed $210 billion in CY2027, representing growth of approximately 30% year on year. Financial position: total assets of ¥3.1774 trillion, an equity ratio of 68.2%, cash and cash equivalents of ¥579.7 billion, operating cash flow of ¥351.1 billion, and free cash flow of ¥310.4 billion. The company conducted a ¥150 billion share buyback.