Advantest (6857) Q2 2027 earnings summary

Executive summary

• Q2 FY26 sales and profits reached quarterly records; H1 sales, operating income and net income also set six-month records, supported by AI-related tester demand, improved mix and yen depreciation.

• AI demand spans GPUs, custom ASICs, CPUs and high-performance memory; rising chip volumes, test complexity and supply constraints are driving capacity expansion across the supply chain.

Financial highlights

• Q2 sales were ¥477.7B, up 30.0% QoQ and 81.7% YoY; operating income was ¥266.8B, up 40.4% QoQ and 146.0% YoY.

• Q2 gross profit was ¥339.8B with a 71.1% margin; operating margin was 55.9%. Net income was ¥193.3B, up 142.7% YoY.

• H1 sales were ¥845.2B, up 60.5% YoY; operating income was ¥456.8B, up 96.5%, and net income was ¥368.1B, up 116.8%.

• H1 financial income was ¥57.0B, including ¥54.2B of valuation gains on strategic investment instruments.

• H1 net cash from operating activities was ¥307.0B; cash and cash equivalents ended the period at ¥401.8B.

Outlook and guidance

• FY26 forecast raised to sales of ¥1,863.0B, operating income of ¥967.0B, income before taxes of ¥1,021.5B and net income of ¥741.5B; basic EPS forecast is ¥1,027.08.

• FY26 operating-margin forecast rose to 51.9%; H2 margin is expected to exceed 50%, about 3 percentage points above July guidance, despite higher component costs.

• FY26 tester-market forecasts were maintained: SoC testers at ~$11.5B and memory testers at the midpoint of the $2.5B–$3B range.

• Favorable tester-market conditions are expected to continue into 2027, with demand expected to exceed supply; geopolitical and macroeconomic risks remain.