27/2 Q1 results: Profits lower than expected, but orders strong: Quick Note

Research evidence excerpt

27/2 Q1 results: Profits lower than expected, but orders strong: Quick Note

Global Markets Research

10 July 2026Yaskawa Electric

6506.T 6506 JP / EQUITY: JAPAN MACHINERY

27/2 Q1 results: Profits lower than expected, but Rating Buyorders strong

Target price JPY 7,800Quick Note

Closing price

10 July 2026 JPY 6,972First impression in line: Operating profits lower than expected, orders stronger

Released after the close of trading on 10 July, Mar–May 2026 (27/2 Q1) operating profits (Note: Quick Note reports are not a

fell 19% y-y to ¥8.5bn, sharply below our ¥14.2bn forecast. The transition to new vehicle for changes to ratings, target

backbone system dented operating profits by ¥1.5bn at the motion control segment and prices, or earnings forecasts)

¥1.0bn at the robotics segment, and the company incurred ¥1.0bn in restructuring costs in

Europe at the robotics segment, although management said it had already factored this

into guidance. Aside from these one-time factors, sales of robots and AC servo motors

were slightly weaker than we had expected, resulting in a sharp undershoot in operating Research Analysts

profits. However, orders rose 29% y-y and 8% q-q, and orders from the semiconductor

Japan machineryindustry hit an all-time quarterly high. While the sharp undershoot in profits came as a

Kentaro Maekawa - NSCsurprise to us, our overall first impression is in line.

kentaro.maekawa@nomura.com

Orders up from semiconductor industry, up q-q at robotics segment +81 3 6703 1208

At the results briefing held the same day, management said that semiconductor

applications, which account for around 15%, had shown strong growth at both the motion

control and robotics segments, driving growth in orders. At the robotics segment, there