Financial Review

Consolidated Financial Results of FY2026 Q1 (April 1, 2026 through June 30, 2026)

July 29, 2026
(in billion yen)

During Advantest's three-month period ended June 30, 2026, the global economy as a whole remained resilient, supported by increased investment related to AI, particularly in the United States. On the other hand, uncertainties have also increased due to geopolitical risks, including the escalating tensions in the Middle East.

Under such global economic conditions, the semiconductor market continued to grow robustly. Against the backdrop of accelerating competition in AI technology and broader adoption across society, AI-related semiconductors, such as HPC (High-Performance Computing) devices and high-performance memory semiconductors for data centers drove market growth.

In Advantest's business, demand for testers for AI-related high-performance semiconductors grew significantly. As production volumes of advanced AI-related semiconductors increased and device complexity grew, customers continued to invest actively in our products. Advantest worked to expand production capacity throughout the supply chain to meet customers' strong tester demand in a timely manner.

As a result of the above, net sales were (Y) 367.5 billion (39.3% increase in comparison to the corresponding period of the previous fiscal year), and operating income was (Y) 190.0 billion (53.3% increase in comparison to the corresponding period of the previous fiscal year), due to factors including an increase in sales and an improved sales mix. In addition, Advantest recorded financial income of approximately (Y) 44.7 billion, primarily attributable to valuation gains on financial instruments related to strategic investments. As a result, income before income taxes was (Y) 234.1 billion (92.9% increase in comparison to the corresponding period of the previous fiscal year) and net income was (Y) 174.8 billion (93.8% increase in comparison to the corresponding period of the previous fiscal year). The depreciation of the yen against the U.S. dollar also contributed to our financial performance, with net sales, operating income, income before income taxes, and net income all reaching record quarterly highs. Average currency exchange rates in the current period were 1 USD to 159 JPY (146 JPY in the corresponding period of the previous fiscal year), and 1 EUR to 185 JPY (162 JPY in the corresponding period of the previous fiscal year). The percentage of net sales to overseas customers was 99.1% (98.6% in the corresponding period of the previous fiscal year).

(in billion yen)

In this segment, sales of SoC test systems for high-performance SoC semiconductors increased significantly. Demand for testers grew primarily due to rising production volumes of increasingly complex AI and HPC-related semiconductors. With regards to memory testers, amid growing investment in data centers, sales growth was led by products for high-performance DRAM and sales of products for non-volatile memory also increased. In line with the growing demand for testers, sales of device interfaces and test handlers also increased.

(in billion yen)

In this segment, sales of support services increased as the installed base grew. In addition, sales of consumables such as test interface boards for high-performance SoC semiconductors increased. The segment income in the corresponding period of the previous fiscal year included a gain of approximately (Y) 2.5 billion resulting from the partial divestiture of a business.

Total assets at June 30, 2026 amounted to (Y) 1,514.7 billion, an increase of (Y) 342.8 billion compared to March 31, 2026, primarily due to increases of (Y) 289.8 billion in investment securities, (Y) 73.2 billion in cash and cash equivalents, and (Y) 41.9 billion in inventories, offset by a decrease of (Y) 50.2 billion in trade and other receivables. Total liabilities amounted to (Y) 472.0 billion, an increase of (Y) 95.9 billion compared to March 31, 2026, primarily due to increases of (Y) 88.9 billion in bonds, (Y) 37.6 billion in other current liabilities and (Y) 12.3 billion in trade and other payables, offset by a decrease of (Y) 51.1 billion in income taxes payable. Total equity was (Y) 1,042.6 billion. Ratio of equity attributable to owners of the parent was 68.8%, an increase of 0.9 percentage points from March 31, 2026.