Financial Review

Consolidated Financial Results of FY2025 (April 1, 2025 through March 31, 2026)

April 27, 2026
(in billion yen)

During Advantest’s fiscal year ended March 31, 2026, the global economy as a whole trended firmly, driven in part by increased AI-related investment, particularly in the United States.

Under such global economic conditions, the semiconductor industry’s growth continued to be driven by AI-related semiconductors, such as HPC (High Performance Computing) devices and high-performance DRAM for data centers. In addition, demand for semiconductors for consumer electronics products, including smartphones, was solid. Combined with rising semiconductor prices in the second half of the fiscal year, particularly among memory semiconductors, the semiconductor market achieved strong growth.

In Advantest’s business, demand for testers for AI-related high-performance semiconductors grew significantly. Advantest worked to expand product supply capabilities in order to meet customers’ strong capital investment appetite to the greatest extent possible and successfully carried out timely product deliveries.

As a result, in the consolidated fiscal year ended March 31, 2026,  net sales were (Y) 1,128.6 billion (44.7% increase in comparison to the corresponding period of the previous fiscal year). Operating income reached (Y) 499.1 billion (118.8% increase in comparison to the corresponding period of the previous fiscal year) due to improved sales mix of high-margin products, in addition to the overall increase in sales. Following the decision to exercise the call options on shares, which were acquired as part of strategic investments that closed on January 21, 2025, a fair value measurement was conducted, resulting in the recognition of approximately (Y) 17.3 billion in financial income in the fourth quarter. As a result, income before income taxes was (Y) 516.7 billion (129.9% increase in comparison to the corresponding period of the previous fiscal year), and net income was (Y) 375.4 billion (132.9% increase in comparison to the corresponding period of the previous fiscal year). These figures reached record highs for the consolidated fiscal year.  Average currency exchange rates in the fiscal year ended March 31, 2026, were 1 USD to 150 JPY (153 JPY in the previous fiscal year) and 1 EUR to 173 JPY (164 JPY in the previous fiscal year). The percentage of net sales to overseas customers was 97.8% (98.0% in the previous fiscal year). Operating income for the previous fiscal year included an impairment loss of approximately (Y) 21.4 billion, which was recorded for goodwill and intangible assets.

(in billion yen)

In this segment, sales of SoC Test Systems for high-performance SoC semiconductors increased significantly. This reflects the rising tester demand driven by the growing complexity and enhanced performance of semiconductors, in response to the increasing demand for HPC devices and AI-related semiconductors. On the other hand, tester demand for mature semiconductors such as those used in the automotive and industrial equipment sectors remained soft. With regards to Memory Test Systems, in addition to elevated sales for high-performance DRAM, sales for non-volatile memory also increased.

In response to strong demand, ongoing enhancements to supply capabilities further supported this segment’s sales growth.

(in billion yen)

In this segment, support services sales increased as the installed base grew. In addition, sales of consumables such as test interface boards for high-performance SoC semiconductors increased. Segment income for the consolidated fiscal year ended March 31, 2026, includes a gain of approximately (Y) 2.5 billion resulting from the partial divestiture of a business. The segment loss for the previous fiscal year included an impairment loss of approximately (Y) 21.4 billion on goodwill and intangible assets.

Total assets at the end of FY2025 were (Y) 1,171.8 billion, an increase of (Y) 317.6 billion compared to the previous fiscal year, primarily due to increases of (Y) 115.7 billion in trade and other receivables, (Y) 77.4 billion in cash and cash equivalents, (Y) 41.8 billion in other financial assets, (Y) 23.0 billion in property, plant and equipment and (Y) 22.0 billion in inventories. The total liabilities were (Y) 376.1 billion, an increase of (Y) 28.4 billion compared to the previous fiscal year. This was primarily attributable to increases of (Y) 39.4 billion in income taxes payable, (Y) 35.0 billion in trade and other payables, (Y) 11.7 billion in other current liabilities and (Y) 6.7 billion in other financial liabilities, offset by a decrease of (Y) 75.0 billion in short-term borrowings. Total equity was (Y) 795.7 billion. Ratio of equity attributable to owners of the parent was 67.9%, an increase of 8.6 percentage points from March 31, 2025.