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Socionext (6526) investor relations material
Socionext Q4 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for FY2026/3 reached ¥200.8 billion, up 6.5% year-over-year, driven by strong product revenue growth, especially in automotive, data center, and industrial sectors, despite a decline in Chinese telecom demand.
Operating income declined 50.6% year-over-year to ¥12.4 billion due to a significant drop in product gross margin and higher costs during early mass production phases.
Net income fell 55.4% year-over-year to ¥8.7 billion, reflecting margin pressures and increased costs.
The company continued its transformation, focusing on high-growth areas and strengthening global partnerships, especially in automotive, data center, and networking.
R&D costs decreased 2.2% year-over-year to ¥58.5 billion, with ongoing investments in advanced technologies and chiplet platforms.
Financial highlights
Product revenue increased by ¥15.2 billion (+10.4% YoY) to ¥161.8 billion, while NRE revenue declined by ¥2.7 billion (-6.6% YoY) to ¥38.3 billion.
Product gross margin dropped to 31.4% from 42.3% in the prior year, mainly due to higher costs and product mix changes.
Operating margin decreased to 6.2% from 13.3% year-over-year.
Cash on hand declined by ¥28.3 billion to ¥44.5 billion, while inventories increased by ¥14.0 billion to ¥31.1 billion.
Comprehensive income was ¥9.7 billion, down 50.1% year-over-year.
Outlook and guidance
FY2027/3 net sales forecast at ¥215.0 billion (+7.1% YoY), with operating income of ¥14.0 billion (+13.3% YoY) and net income of ¥10.0 billion (+14.5% YoY); EPS projected at ¥57.05.
Growth expected from expanded mass production in automotive and data center products, with a foreign exchange assumption of 130 yen/USD.
Product gross margin expected to slightly decrease due to higher share of large-scale projects and elevated costs, but revenue growth is anticipated to offset margin pressure.
R&D and SG&A ratios are expected to improve due to leverage from higher net sales.
Dividend per share maintained at ¥50.00.
- Sales rebounded, but profits and margins remain pressured by costs and FX; guidance unchanged.6526
Q3 202630 Jan 2026 - Sales guidance raised but profit outlook cut as margins shrink amid higher costs and weak demand.6526
Q2 202631 Oct 2025 - Sharp profit and sales drop in 1Q FY26/3, but full-year guidance and recovery outlook are maintained.6526
Q1 202631 Jul 2025 - Sales and profit fell, but R&D and NRE revenue rose; treasury stock buyback approved.6526
Q2 202513 Jun 2025 - Net sales fell 14.1% but operating income and R&D investment both increased.6526
Q1 202513 Jun 2025 - Revenue and profit fell sharply, but investments and design wins support future growth.6526
Q4 20256 Jun 2025 - Net sales dropped 14.4% and the full-year outlook was cut amid weak China demand.6526
Q3 20255 Jun 2025
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