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Tokyo Electron surges for first time in three days on plan for 42% operating profit increase in H1 driven by AI server demand
Tokyo Electron Limited <8035> shares jumped for the first time in three sessions. After the market close on April 30, the company released its first-half forecast for the fiscal year ending March 2027, alongside results for the year ended March 2026. Tokyo Electron projects revenue of 1.57 trillion yen, up 33.1% year-on-year, and an operating profit of 431.0 billion yen, a 42.2% increase. Net profit is forecast to rise 35.7% to 328.0 billion yen. The interim dividend is set at 361 yen, up from 264 yen a year earlier, drawing buyer interest as AI server demand fuels performance.
Tokyo Electron withheld its full-year guidance, noting it would be released with its interim results in September. The company expects first-half revenue to surge more than 50% year-on-year in coating and developing, 25% in etching, and 60% in advanced packaging. It anticipates a further increase in shipments centered on DRAM and advanced logic in the second half of 2026.
For the year ended March 2026, revenue was 2.44 trillion yen, up 0.5% year-on-year, while operating profit fell 10.4% to 624.94 billion yen. Net profit rose 5.6% to 574.45 billion yen. During the year, investment in China for chip-making equipment plateaued, while spending on generative AI applications grew significantly. Despite lower operating profit, Tokyo Electron posted a net profit increase due to gains from the sale of investment securities.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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