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Investing.com -- Tokyo Electron reported second-quarter operating profit of ¥158.4 billion, up 13.1% year-over-year and exceeding both company guidance and market consensus.
The semiconductor equipment manufacturer has revised its full-year fiscal 2026 guidance upward, increasing sales projections by ¥30 billion and operating profit forecasts by ¥16 billion. This partially reverses the downward revision announced during first-quarter results.
Second-quarter sales reached ¥630.0 billion, representing an 11.2% increase from the same period last year. These results surpassed the company’s guidance of ¥600.4 billion in sales and ¥143.3 billion in operating profit. Market consensus had expected sales of ¥604.4 billion and operating profit of ¥151.2 billion.
For the first half of fiscal 2026, Tokyo Electron recorded total sales of ¥1.1796 trillion, up 5.2% year-over-year. Equipment sales accounted for ¥850.0 billion of this total, a slight 0.4% increase. The equipment sales breakdown showed DRAM at 27%, non-volatile memory at 12%, and logic and foundry at 61%, with DRAM and logic & foundry segments slightly exceeding expectations.
Chinese sales increased to 40.3% of total sales in the second quarter, up 1.7 percentage points from the previous quarter. Field Solutions sales rose to ¥160.3 billion, an increase of ¥19.1 billion compared to the first quarter, breaking from the ¥140.0 billion quarterly trend seen since fiscal 2025.
Gross profit margin for the second quarter was 45.2%, down 1.0 percentage point from the first quarter and slightly below the company’s guidance of 45.5%.
Tokyo Electron maintained its outlook for the wafer fabrication equipment market at $115 billion for 2025. While not providing specific numbers for 2026, the company expressed improved sentiment compared to the first quarter, noting expectations for continued expansion in advanced semiconductor investment.
The company’s net profit guidance has been raised by ¥44.0 billion to ¥488.0 billion, though this still represents a 10% year-over-year decline. Dividend per share guidance was increased by ¥48 to ¥533, which remains ¥59 lower than the previous fiscal year.
Research and development expense guidance was reduced by ¥5.0 billion to ¥290.0 billion, while capital expenditure (¥240.0 billion) and depreciation (¥86.0 billion) forecasts remained unchanged.
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