Advantest (6857) investor relations material

Executive summary

• Achieved record-high Q1 revenue and profit, with net sales rising 39.3% year-over-year to ¥367.5 billion, driven by robust demand in the SoC tester market, especially for AI, GPU, custom ASIC, and CPU applications, and favorable currency exchange rates.

• Upward revision of SoC tester market outlook, with the midpoint projection increased from JPY 9.1 billion to JPY 11 billion, and full-year FY2026 sales forecast raised to ¥1,714.0 billion, mainly due to growth in compute, inferencing, and AI-related segments.

• Company maintains a dominant and rising market share in SoC testers, with a trajectory toward 70%+ share, and expects continued growth in compute, custom ASIC, and networking markets.

• Accelerated capacity expansion, pulling forward the 10,000 unit annual capacity target, and increased R&D investments and partnerships.

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

Financial highlights

• Q1 FY26 sales reached JPY 367.5B, up 12.0% sequentially and 39.3% year-over-year, with gross margin improving to 69.5% and operating income at JPY 190.0B, margin 51.7%.

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

• Dividend per share increased to JPY 30.

• Margin benefited from a reversal of inventory obsolescence, which is not expected to recur consistently.

• Memory pricing remains a headwind, impacting margin outlook for the remainder of the year.

Outlook and guidance

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

• Demand for SoC testers is expected to remain strong and sustainable into next year, with continued increases in test content and test times, especially for accelerators and 3D packaging.

• Visibility into customer demand has extended from six months historically to about 18 months, enabling better capacity planning.

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

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