Renesas Electronics (6723) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 reached ¥405.3 billion, up 24.8% year-over-year and 8.8% sequentially, with strong growth in Automotive and Industrial/IoT segments.

• Gross margin was 58.1%, with operating margin at 32.7%; profit attributable to owners was ¥113.3 billion, up 35.5% year-over-year.

• Limited impact from the Kumamoto earthquake on operations; production at affected factories is resuming, with full recovery expected within three weeks.

• Data center and industrial demand, especially in China and Japan, contributed to robust results.

• Comprehensive income for the six months improved to ¥438,910 million from a loss of ¥475,677 million year-over-year.

Financial highlights

• EBITDA for Q2 2026 was ¥154.3 billion, up ¥44.1 billion year-over-year; net profit for Q2 was ¥149.2 billion, including financial income from Wolfspeed-related assets.

• Basic earnings per share for the period was ¥117.47, compared to a loss per share of ¥97.34 in the prior year.

• Total assets increased to ¥4,562,527 million as of June 30, 2026, with equity attributable to owners at ¥2,849,646 million.

• Net cash from operating activities was ¥256,948 million, with cash and cash equivalents at period end of ¥376,017 million.

• Revenue exceeded guidance by 4.5%, mainly due to FX and strong demand in auto and IoT.

Outlook and guidance

• Q3 2026 revenue guidance is ¥430 billion, up 28.7% year-over-year and 6.1% sequentially.

• Gross margin expected at 57.5%, with operating margin at 32.5%; full-year revenue for the first nine months is expected to reach ¥1,207.6 billion, up 24.8% year-over-year.

• Non-GAAP revenue for the nine months ending September 30, 2026, is forecast at ¥1,200,113 to ¥1,215,113 million, up 24.0–25.6% year-over-year.

• Non-GAAP gross margin is projected at 58.2% and operating margin at 33.0%.

• Automobile, industrial, infrastructure, and IoT segments expected to continue growth.