DISCO Q1 Operating Profit Surges 42% to ¥49.03 Billion on AI and HBM Chip Demand; First-Half Profit Seen Up 33%

DISCO Corporation (TSE: 6146), the dominant maker of precision dicing saws, grinders and laser saws used in semiconductor back-end processing, reported consolidated results for the first quarter of the fiscal year ending March 2027 (April–June 2026) under Japanese GAAP. Revenue rose 27.1% year on year to ¥114,308 million, operating profit jumped 42.2% to ¥49,033 million, ordinary profit climbed 42.5% to ¥48,441 million, and net profit attributable to owners of the parent surged 44.0% to ¥34,221 million. Basic earnings per share came to ¥315.51, up from ¥219.23 a year earlier.

AI datacenter buildout keeps demand at high levels

DISCO said continued datacenter investment on the back of expanding generative-AI demand kept orders for high-performance semiconductors — advanced logic and HBM (High Bandwidth Memory) — running at high levels through the quarter. Shipments of precision processing equipment were strong, centered on high-value-added machines for high-performance chips, while shipments of consumable precision tools also stayed elevated in line with customers' equipment utilization. Total shipments reached ¥135,906 million, up 22.3% year on year, and progress on machine acceptance inspections lifted recognized revenue.

Margins expand on richer mix and forex

Profitability improved faster than the top line: the gross margin rose on favorable exchange rates and a higher weighting of high-value-added products, more than absorbing growth in personnel and R&D spending. The operating margin reached 42.9%, up from 38.3% a year earlier, and the net margin stood at 29.9%.

Balance sheet stays fortress-like

Total assets stood at ¥751,159 million at end-June, up ¥7,748 million from end-March, mainly on higher inventories. Liabilities rose ¥13,350 million to ¥168,636 million as electronically recorded obligations and contract liabilities increased while accrued income taxes and bonus provisions declined. Net assets were ¥582,523 million, and the equity ratio remained a robust 77.3%, down 1.6 points from end-March.

First-half guidance and ¥171 interim dividend unveiled

Because customer capital spending in the semiconductor industry swings sharply over short periods, DISCO discloses forecasts only one quarter ahead. Alongside the Q1 results it newly disclosed first-half (April–September) guidance: revenue of ¥242,800 million (+24.8%), operating profit of ¥104,900 million (+33.0%), ordinary profit of ¥104,800 million (+31.9%) and net profit of ¥73,800 million (+32.0%), with first-half EPS of ¥680.39. First-half shipments are projected at ¥276.9 billion, assuming ¥159 to the U.S. dollar for the July–September quarter. The company also set a previously undetermined interim dividend forecast of ¥171.00 per share, up from ¥129.00 a year earlier; the FY3/2026 full-year dividend totaled ¥505.00.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.