Socionext
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Socionext (6526) investor relations material

Socionext 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 summary30 Jan, 2026

Executive summary

  • Net sales for 3Q FY2026/3 rose 19.2% year-over-year to ¥54.9B, with product revenue up 26.4% and NRE revenue up 30.9% sequentially, driven by new automotive mass production and strong demand in key markets.

  • For the first nine months ended December 31, 2025, net sales were ¥142.1B, down 2.2% year-over-year, with operating income at ¥7.2B (down 65.1%) and net income at ¥4.8B (down 71%).

  • Product revenue bottomed out in Q1 and rebounded, driven by new automotive products for China, but overall product revenue declined 0.3% and NRE revenue fell 9.2% year-over-year.

  • Operating income for 3Q FY2026/3 increased 47.7% sequentially to ¥3.4B, but declined 32.7% year-over-year due to a higher product cost ratio and increased R&D expenses.

  • The company continued to invest in advanced semiconductor technologies and expanded its chiplet development platform.

Financial highlights

  • Gross profit for the period was ¥65.8B, with a gross margin decline due to lower-margin new products and increased development investment.

  • Ordinary income was ¥6.6B, down 68.6% year-over-year, impacted by foreign exchange losses and higher costs.

  • Cash on hand and in banks decreased to ¥43.8B as of December 31, 2025, from ¥72.8B at the previous fiscal year-end.

  • Inventories rose to ¥32.8B, reflecting higher regular inventory and customer-reserved stock.

  • Net cash provided by operating activities was ¥2.8B, down sharply from ¥23.5B in the prior year period.

Outlook and guidance

  • Full-year FY2026/3 net sales forecast is ¥190.0B (+0.8% vs. prior year), with operating income forecast at ¥10.0B (-60.0%) and net income at ¥6.7B (-65.8%).

  • Basic EPS forecasted at ¥38.16 and dividend at ¥50 per share.

  • Product cost ratio is expected to remain elevated in FY26/3 due to new product mix and FX impact, but improvement is anticipated from FY27/3 onward.

  • Operating margin is expected to recover in FY27/3 and beyond as product revenue grows and cost structure improves.

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Frequently asked questions

Socionext Inc. is a system on a chip (SoC) company formed in March 2015 from former system LSI businesses of Fujitsu and Panasonic. It offers application specific standard products in the areas of servers, image processing, video processing, digital TV, digital signage, automotive, medical healthcare, radar sensor, HDMI module, and IoT communication. Further, the company also provides custom SoC solutions, as well as development support, subsystem service, IP macro service, design technology, and manufacturing technology package services. Socionext Inc. is headquartered in Yokohama, Japan.

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