Advantest raises FY26 guidance after strong Q2 results

Investing.com -- Advantest reported second-quarter sales of ¥262.9 billion, up 38% year-on-year but slightly down 0.3% quarter-on-quarter, beating its own guidance of ¥237.2 billion.

The company’s operating profit reached ¥108.4 billion, representing a year-on-year increase of ¥44.9 billion, though it declined by ¥15.5 billion from the previous quarter due to changes in sales mix. These results exceeded both market estimates of ¥245.4 billion in sales and ¥102.7 billion in operating profit.

Despite a 2.9 percentage point quarterly decline in gross margin to 62.2%, the figure remains robust. The margin decrease was attributed to lower SoC tester sales and increased memory tester business.

Advantest has revised its tester market outlook for 2025, now projecting the SoC tester market to reach between $6.5-6.9 billion, up from its previous estimate of $5.7-6.39 billion. This represents a 63% year-on-year increase at the median value compared to $4.1 billion in 2024. The memory market forecast remains relatively stable at $1.8-2.1 billion.

Following these strong results, Advantest raised its fiscal year 2026 guidance, adding ¥115 billion to sales and ¥74 billion to operating profit projections. The new targets are ¥950 billion in sales (+21.8% year-on-year), ¥374 billion in operating profit (+63.9%), and ¥275 billion in net profit (+70.6%).

The company’s updated forecast includes ¥624 billion in SoC tester sales, a 42% year-on-year increase, and ¥153 billion in memory tester sales, a 3% decrease.

Advantest also revised its medium-term management plan for fiscal years 2025-2027, raising sales targets from ¥560-700 billion to ¥835-930 billion and operating margin from 22-28% to 33-36%. Based on current projections, the anticipated fiscal year 2027 sales range is ¥775.3-1,060.3 billion with an operating margin of 34.8%.

The company expressed optimism about fiscal year 2026 and predicted continued growth in the medium term beyond fiscal year 2027, stating it can maintain an advantageous position against competitors in AI.

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