Kokusai Electric Reports 40% Revenue Jump, Profitability Gains

Kokusai Electric Corporation posted a significant 40.0% year-over-year increase in sales revenue for the first half of fiscal year 2026, reaching ¥164.043 billion, fueled by robust demand for semiconductor manufacturing equipment driven by the expansion of artificial intelligence (AI) applications. This surge in revenue translated to a 62.1% increase in operating profit, reaching ¥36.8 billion.

The strong performance reflects a broader trend of increased investment in semiconductor devices, particularly those used in AI-related applications, including high-performance Logic and DRAM. Demand for data center servers, crucial for AI workloads, is expanding rapidly, prompting device manufacturers to increase capital expenditures. While demand for consumer electronics and automotive sectors remains moderate, Kokusai Electric benefits from the overall upswing in the semiconductor market.

Financially, the company’s intermediate net assets totaled ¥390.1 billion, a ¥304 billion increase from the end of the previous fiscal year, driven by a ¥132 billion rise in cash and cash equivalents. Liabilities increased by ¥126 billion to ¥152.9 billion, while equity rose by ¥179 billion to ¥237.2 billion. The company also maintained a steady dividend payout, resolving to distribute ¥32.00 per share on December 8th to shareholders of record as of September 30th.

Kokusai Electric’s first-half results demonstrate a clear benefit from the current macroeconomic environment and the rapid growth of the AI market. The 62.1% leap in operating profit outpaced the 40.0% revenue increase, suggesting improved efficiency and pricing power. While the company acknowledges ongoing geopolitical risks and macroeconomic uncertainties, its strong performance positions it to capitalize on the anticipated long-term growth in the semiconductor industry.