Tokyo Electron (8035) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027 reached ¥732.3 billion, up 33.3% year-over-year and 2.9% quarter-over-quarter, with both net sales and gross profit at record highs.

• Operating income rose 46.1% year-over-year to ¥211.4 billion, with operating margin steady at 28.9%.

• Net income attributable to owners was ¥164.3 billion, up 39.5% year-over-year but down 23.3% sequentially due to absence of prior extraordinary gains.

• Growth was driven by robust demand in advanced logic, memory, and AI server segments.

• Business operations in Kumamoto were minimally impacted by the recent earthquake, with full recovery expected soon.

Financial highlights

• Gross profit margin held at 46.8%, up 0.6pts year-over-year.

• Field solutions sales increased 15.5% sequentially to ¥188.0 billion.

• Free cash flow for Q1 FY2027 was ¥80.5 billion, with cash and cash equivalents at ¥409.6 billion.

• R&D expenses for Q1 FY2027 were ¥72.0 billion, up 15.9% year-over-year.

• Total assets increased to ¥2,955.4 billion as of June 30, 2026.

Outlook and guidance

• H1 FY2027 net sales forecast raised to ¥1,620.0 billion (+37.3% YoY), gross profit ¥748 billion, and operating income ¥458 billion (+51.1% YoY), all record highs.

• Interim dividend forecast raised to ¥384 per share, a record high.

• Second half of FY2027 expected to see further acceleration in demand, especially for memory and advanced logic.

• Full-year new equipment sales in the first half projected to grow 45% year-over-year to ¥1.24 trillion.

• Gross profit margin target of 50% or more within two years.