Tokyo Electron (8035) investor relations material

Executive summary

• Net sales for FY2026 reached JPY 2,443.5 billion, a record high, with net income attributable to owners of parent at JPY 574.4 billion, up 5.6% year-over-year, supported by strong demand in advanced logic, DRAM HBM for AI servers, and a recovery in 3D NAND investment.

• Q4 net sales were JPY 711.8 billion and net income was JPY 214.2 billion.

• Major R&D and production facility expansions were completed in Miyagi, Kumamoto, and Iwate, with further smart production investments underway.

• Maintained leading positions in DRAM, HBM interconnects, and advanced packaging sectors.

• Net income per share was JPY 1,254.57, up 6.1% year-over-year.

Financial highlights

• FY2026 net sales rose 0.5% year-over-year to JPY 2,443.5 billion; Q4 net sales up 28.9% sequentially.

• FY2026 operating income was JPY 624.9 billion, down 10.4% year-over-year; Q4 operating income up 77.1% sequentially.

• FY gross profit was JPY 1,907.8 billion, gross margin 45.3% (down 1.8 pts YoY); operating margin 25.6% (down 3.1 pts YoY).

• Extraordinary income of JPY 115.4 billion from shareholdings sale; capital expenditures JPY 216.0 billion; depreciation JPY 80.9 billion, up 30.3% YoY.

• EPS for FY2026 was JPY 1,254.57, up 6.1% year-over-year.

Outlook and guidance

• WFE market expected to grow 20%+ in 2026 and 2027, reaching $150–170 billion per year.

• H1 FY2027 guidance: net sales JPY 1,570 billion, gross profit JPY 715 billion, operating income JPY 431 billion—all record half-year levels.

• H2 FY2027 expected to see even stronger growth, especially from DRAM and advanced logic shipments.

• FY2027 R&D expenses planned at JPY 330 billion; CapEx at JPY 190 billion.

• Interim dividend forecast for FY2027 is JPY 361 per share, with a payout ratio of 50%.