Disco (6146) 1Q results: Headcount for factory production support unchanged; limited surprise in the numbers

Research evidence excerpt

Disco (6146) 1Q results: Headcount for factory production support unchanged; limited surprise in the numbers

J P M O R G A N Asia Pacific Equity Research

24 July 2026

Disco (6146) Neutral

6146.T, 6146 JP

1Q results: Headcount for factory production support Price (23 Jul 26):¥69,410

unchanged; limited surprise in the numbers Price Target (Dec-26):¥83,000

Neutral: 1Q operating profit was ¥49.0 billion (-17% QoQ), broadly in line with Japan Equity Research

market expectations (Bloomberg consensus estimate: ¥48.6 billion; our estimate:

Technology - Semiconductor/

¥49.0 billion). Shipment value was ¥135.9 billion (our estimate: ¥133.2 billion), Technical Materials

up 12% QoQ. Versus the company’s guidance, equipment shipments came in about AC Mio Shikanai

¥3 billion below due to timing slippage, but this was offset by strength in

(81-3) 6736 1313

consumables and other items. 2Q shipment value guidance, a key focal point, is mio.shikanai@jpmorgan.com

¥141.0 billion (+4% QoQ), broadly in line with the market’s pre-results Junya Ayada

expectations (we estimate that at around ¥140 billion; our estimate: ¥119.2 billion). (81-3) 6736 8631

While the quarter delivered limited surprises, Disco mentioned it will maintain the junya.ayada@jpmorgan.com

headquarters-to-factory production support program at around 100 staff for the JPMorgan Securities Japan Co., Ltd.

time being, given continued strong demand.

• 1Q results overview: 1Q operating profit was ¥49.0 billion (-17% QoQ, +42%

YoY; Bloomberg consensus estimate: ¥48.6 billion), and shipment value was

¥135.9 billion (+12% QoQ, +22% YoY; ¥135.3 billion), both broadly in line

with market expectations. By major product, shipment value for dicers rose

16% QoQ, grinders rose 15% QoQ, and precision processing tools increased