Rohm: Jun-Q Results: Strong Industrial and Server Sales, but Margin Improvement Slightly Delayed

Research evidence excerpt

M

Update

August 5, 2026 11:47 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Rohm (6963) | Japan

Kazuo Yoshikawa, CFA

Equity Analyst

Jun-Q Results: Strong Industrial

and Server Sales, but Margin

Improvement Slightly Delayed

Hidetaka Suzuki

Research Associate

What’s Changed

Rohm (6963.T)

From

To

Rohm (6963.T, 6963 JT)

FY3/27e operating profit

¥32.4bn

¥47.8bn

Japan Semiconductors | Japan

FY3/28e operating profit

¥50.8bn

¥61.0bn

We raise our earnings forecasts.

Jun-Q results: Orders exceeded ¥160.0bn, with a book-to-bill ratio above 1.2x. Fab

utilization was slightly above 60%. Sales were ¥135.7bn (YoY+11% / QoQ+20% on a

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Div yld (03/27e) (%)

In-Line

¥4,749

¥1,864.3

1.1

constant-currency basis) gross margin 25.5% (QoQ-1.2ppt), and OP ¥9.6bn. OP beat

Fiscal Year Ending

03/26 03/27e 03/28e 03/29e

Rohm’s internal plan of around ¥5.0bn and was on par with recent market

Revenue, net (¥bn)

Operating profit (¥bn)*

Recurring profit (¥bn)*

Net income (¥bn)*

EPS, basic (¥)*

Prior EPS, basic (¥)*

EPS (¥)**

Prior EPS (¥)**

P/E, basic*

P/BV, basic

ROE (%)*

481.1

10.9

19.2

(158.4)

(410.4)

(410.5)

NM

1.6

(17.8)

expectations.

Sales were strong, supported by products such as silicon MOSFETs for servers. SiC

business sales exceeded ¥10.0bn and were broadly flat QoQ. Though Rohm

recognized an impairment loss on SiC production equipment at the end of F3/26,

gross margin and EBITDA margin declined QoQ. This was due to the negative impact

of product inventory reduction and remaining yield issues for SiC devices. President

Azuma expressed his commitment to improvement going forward.

Business outlook: Rohm maintained FY3/27 guidance. President Azuma stated,

“Demand for AI/data center products is strong, and we will repurpose equipment

539.0

47.8

53.7

37.8

98.0

68.5

98.0

68.5

48.5

2.4

5.0

559.8

61.0

65.1

45.9

119.0

99.4

119.0

99.4

39.9

2.3

5.9

583.4

79.5

83.7

59.7

154.7

131.0

154.7

131.0

30.7

2.2

7.4

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

* = GAAP or approximated based on GAAP

** = Based on consensus methodology

…