Advantest (6857) Q2 2027 (Q&A) earnings summary

Executive summary

• AI-related demand across GPUs, custom ASICs and CPUs drove record Q2 results and six-month records; agentic AI added unexpected CPU demand.

• Faster capacity expansion supports higher second-half shipments and expected SoC tester share gains in 2026 and 2027.

Financial highlights

• Q2 sales were ¥477.7B, up 30.0% QoQ and 81.7% YoY; gross profit was ¥339.8B with a 71.1% margin.

• Q2 operating income reached ¥266.8B, up 18.0% QoQ and 153.0% YoY; net income was ¥193.3B, up 10.6% QoQ and 142.7% YoY.

• H1 net sales rose 60.5% YoY to ¥845.2bn and operating income increased 96.5% to ¥456.8bn; income before tax was ¥510.2bn and net income ¥368.1bn.

• FX-adjusted H2 top-line growth is forecast at 28% half-over-half; H1 margins benefited from a one-time inventory reversal, with margins expected to settle in the low 50s.

Outlook and guidance

• FY2026 forecast rose to ¥1,863.0bn sales, ¥967.0bn operating income, ¥1,021.5bn pretax income and ¥741.5bn net income.

• The revised sales forecast is ¥149.0bn above July guidance; FY2026 operating margin is forecast at 51.9%.

• SoC shipments are expected to rise in Q3 and further in Q4; memory-system shipments are also expected to be strong in Q4.

• The 10,000-system capacity target is being accelerated from its original FY2028-end schedule; a 20,000-system step is under internal discussion.

• Fuller 2027 ATE TAM quantification is planned for the January Q3 call; Mid-Term Plan 4 is expected in May, with visibility through 2028 and 2029.