Renesas Electronics (6723) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached ¥380.3B (GAAP), up 23.2% year-over-year, with strong growth in Automotive and Industrial/Infrastructure/IoT segments; Non-GAAP revenue was ¥372.3B, up 20.6% year-over-year.

• Gross margin improved to 59.2% (Non-GAAP), up 2.4 points year-over-year, driven by better product mix and lower manufacturing costs.

• Operating profit (Non-GAAP) rose to ¥125.4B (33.7% margin), up 49.6% year-over-year; GAAP operating profit was ¥90.6B (23.8% margin), up 320.7%.

• Net income (Non-GAAP) was ¥102.9B, up ¥29.7B year-over-year; basic EPS increased to ¥37.57.

• Results exceeded guidance, driven by robust demand in automotive, AI/data center, and industrial/IoT, despite supply constraints and the impact of the Timing Business divestiture.

Financial highlights

• GAAP revenue for Q1 2026 was ¥380.3B, up 23.2% year-over-year and 8.2% sequentially; Non-GAAP revenue was ¥372.3B.

• GAAP gross margin was 58.7%, up 2.7 points year-over-year; Non-GAAP gross margin was 59.2%.

• GAAP operating profit reached ¥90.6B (23.8% margin); Non-GAAP operating income was ¥124.4B (33.7% margin).

• EBITDA (Non-GAAP) for Q1 2026 was ¥146.2B, up ¥42.7B year-over-year.

• Cash and cash equivalents at quarter-end were ¥267.6B; equity ratio attributable to owners of parent improved to 60.1%.

Outlook and guidance

• Q2 2026 Non-GAAP revenue guidance midpoint is ¥388.0B, up 19.5% year-over-year and 4.2% sequentially; gross margin forecast at 57.0%, operating margin at 29.0%.

• Non-GAAP revenue for the six months ending June 30, 2026 is forecast at ¥752.8–767.8B, up 18.9–21.2% year-over-year.

• Gross margin expected to decline by 2.1 points QoQ in Q2 due to FX, mix, and higher manufacturing costs.

• Operating margin expected to drop 4.5 points QoQ, mainly from increased personnel and R&D expenses.

• FX sensitivity: a 1 JPY fluctuation impacts revenue by ¥18B (USD) and ¥8B (EUR); macroeconomic and energy cost uncertainties persist.