Advantest (6857) Q1 2027 earnings summary

Executive summary

• Q1 achieved record highs in sales, operating income, and net income, with net sales reaching ¥367.5 billion, up 39.3% year-over-year, driven by robust AI and HPC tester demand and favorable currency rates.

• Operating income rose to ¥190.0 billion, with net income nearly doubling to ¥174.8 billion, both setting new quarterly records.

• The company raised its full-year FY26 forecast, reflecting strong demand, market expansion, and structural shifts from AI.

• Accelerated capacity expansion, increased R&D investments, and strategic partnerships are underway to meet surging demand.

• Overseas sales accounted for 99.1% of total net sales.

Financial highlights

• Q1 FY26 sales reached ¥367.5 billion, up 39.3% year-over-year and 12.0% sequentially, with gross profit at ¥255.6 billion and a gross margin of 69.5%.

• Operating income was ¥190.0 billion (51.7% margin), up 93.8% year-over-year.

• Net income was ¥174.8 billion, up 93.8% year-over-year, with a net margin of 47.6%.

• Basic EPS was ¥241.27, up from ¥123.14 year-over-year.

• Dividend per share for Q1 was ¥30.

Outlook and guidance

• FY26 sales forecast raised to ¥1,714.0 billion, up 51.9% from FY25, with operating income at ¥846.0 billion and net income at ¥660.0 billion.

• Basic EPS projected at ¥911.64, up 77.0% year-over-year.

• Semiconductor tester market expected to reach record size, driven by AI-related demand.

• R&D expenses for FY26 expected to reach ¥110.0 billion.

• Exchange rate assumptions: 1 USD = 150 JPY, 1 EUR = 170 JPY for the remainder of FY2026.