27/3 Q1 results: Reassuring set of results in line with expectations: Quick Note

Research evidence excerpt

27/3 Q1 results: Reassuring set of results in line with expectations: Quick Note

Global Markets Research

30 July 2026Tokyo Electron

8035.T 8035 JP / EQUITY: JAPAN SEMICONDUCTOR PRODUCTION EQUIPMENT

27/3 Q1 results: Reassuring set of results in line Rating Buywith expectations

Target price JPY 80,000Quick Note

Closing price

30 July 2026 JPY 52,240First impression in line: Reassuring in terms of both results and future outlook

Tokyo Electron posted 27/3 Q1 operating profits of ¥211.4bn (up 3% q-q), in line with our (Note: Quick Note reports are not a

forecast of ¥217.4bn and the 30 July Bloomberg consensus forecast of ¥211.4bn. It raised vehicle for changes to ratings, target

its H1 operating profit guidance to ¥458.0bn versus our forecast of ¥442.1bn, and said at prices, or earnings forecasts)

the briefing that operating profits of ¥1trn might be within its sights for full-year 27/3,

compared with our forecast of ¥957.5bn and the QUICK consensus forecast of ¥948.5bn.

Our first impression is neutral in view of the reassuring picture in terms of both results and

the future outlook. Research Analysts

Company discusses factors that could result in outperformance versus WFE Japan semiconductor productionmarket, expresses confidence about gross margin improvement, capacity equipment

Tokyo Electron raised its WFE market outlook for 2026–27 from a range of $150–170bn Atsushi Yoshioka - NSC

previously, to at least $150bn for 2026 (up 21% y-y if $150bn) and at least $190bn for atsushi.yoshioka@nomura.com

2027, meaning growth of least 20% in both years. It looks as though it is taking a slightly +81 3 6703 1176

cautious stance in view of the supply risk from other companies. It also indicated that

sales growth in excess of the WFE market average may be possible in 2027.