Advantest
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Advantest (6857) investor relations material

Advantest Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary28 Jan, 2026

Executive summary

  • Q3 FY25 sales set a new record, surpassing expectations and prior quarters, driven by strong demand for AI-related SoC and memory test systems, with no anticipated digestion period.

  • Operating income and net income outperformed projections, with operating income up 110.8% and net income up 105.0% year-over-year, supported by improved product mix and moderate SG&A increases.

  • Robust performance in the first nine months and solid Q4 visibility led to raised full-year FY25 guidance.

  • Strategic initiatives and capacity expansion under the Third Mid-Term Plan are progressing, with segment restructuring and a major treasury share cancellation announced.

  • The business benefited from robust global economic conditions and a surge in tester demand for high-performance semiconductors, especially in AI and HPC segments.

Financial highlights

  • Q3 FY25 sales reached JPY 273.8B, up 4.1% quarter-over-quarter and 25.5% year-over-year, with gross margin at 62.0% and operating margin at 41.5%.

  • Operating income for Q3 FY25 was JPY 113.6B, up 4.7% quarter-over-quarter and 64.0% year-over-year; net income was JPY 78.7B, up 51.8% year-over-year.

  • FY25 guidance raised: sales JPY 1.07 trillion, operating income JPY 454 billion, net income JPY 328.5 billion, EPS JPY 452.34.

  • Basic earnings per share rose to JPY 340.60 for the nine months, with dividend per share for Q3 FY25 at JPY 29.

  • Total assets increased to JPY 1,020.5B, equity ratio improved to 66.1%, and cash and cash equivalents at period-end were JPY 329.3B.

Outlook and guidance

  • Full-year FY25 guidance increased based on strong nine-month results and Q4 visibility, with sales forecast at JPY 1,070.0B, operating income at JPY 454.0B, and net income at JPY 328.5B.

  • Basic EPS forecast for FY25 is JPY 452.34, up 106.9% year-over-year.

  • Sustained growth in the tester market anticipated for calendar year 2026, driven by AI demand; SoC tester market for 2026 estimated at $8.5–$9.5B, memory tester market at $2.2–$2.7B.

  • Customers are sold out through this year and into next, supporting strong test capacity needs into 2027.

  • Exchange rate assumptions for Q4: 1 USD = 140 JPY, 1 EUR = 155 JPY.

What specific AI growth drivers are key?
Treasury share cancellation rationale?
Strategy for soft mature semiconductor demand?
Current capacity ramp status and new targets
Rank 2026 SoC TAM growth drivers
How supply constraints impact 2026 TAM range?
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Frequently asked questions

Advantest Corporation is a Japanese multinational corporation primarily engaged in the manufacture of automatic test equipment (ATE) for the semiconductor industry, alongside measuring instruments for electronic system design, production, and maintenance. This includes equipment for fiber optic and wireless communications as well as digital consumer products. The company's operations are segmented into three main areas: Semiconductor and Component Test Systems, Mechatronics Systems (which includes test system peripherals), and Services, Support, and Others (focusing on customer support and system-level test products). The company is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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