Advantest (6857) investor relations material

Executive summary

• Strong demand across GPU, custom ASIC, CPU, and AI-related semiconductor testers drove significant growth, with inference applications and increased chip volumes as key contributors.

• Achieved record-high Q1 revenue and profit, with significant year-over-year and sequential growth, supported by favorable currency exchange rates.

• Accelerated production capacity expansion and increased R&D investments and partnerships, aiming to surpass previous SoC tester output targets.

• Agentic AI is identified as a major driver of structural change and efficiency gains, with future growth expected from physical AI applications.

• Financial income included a ¥44.7 billion gain from valuation of strategic investment-related financial instruments.

Financial highlights

• Q1 FY26 sales reached ¥367.5 billion, up 12.0% sequentially and 39.3% year-over-year, with gross margin at 69.5% and operating income at ¥190.0 billion.

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

• Dividend per share increased to ¥30.

• Upward revision of SoC tester market projection from JPY 9.1 billion to JPY 11 billion, mainly due to growth in inference and compute segments.

• Q1 saw very high margins, aided by favorable product mix, exchange rates, and reversal of inventory obsolescence.

Outlook and guidance

• Full-year FY2026 sales forecast raised to ¥1,714.0 billion, operating income to ¥846.0 billion, and net income to ¥660.0 billion.

• Sustained strong demand for SoC testers and AI semiconductors is expected through this year and into next year, with continued growth in compute, custom ASIC, and networking markets.

• Margin outlook remains conservative for the rest of the year due to memory pricing pressures and inflationary headwinds.

• Capacity expansion plans are being accelerated, with the 10,000 unit annual target likely to be achieved earlier than previously planned.

• R&D expenses and capital expenditures both set to increase significantly.