Advantest : Financial Results (E FR FY2026 1Q)

(Advantest’s consolidated financial statements are prepared in accordance with IFRS) (Period ended June 30, 2026)

Company Name : Advantest Corporation

(URL https://www.advantest.com/en/investors/) Stock Exchange on which shares are listed : Prime Market of the Tokyo Stock Exchange Stock Code Number 6857

Company Representative : Koichi Tsukui, Representative Director,

Senior Executive Officer and President, Group COO

Contact Person : Hisako Takada, Senior Executive Officer, CFO

(03) 3214-7500

Dividend Payable Date (as planned) : -Quarterly Results Supplemental Materials : Yes Quarterly Results Presentation Meeting : Yes

(Rounded to the nearest million yen)

1. Consolidated Results of FY2026 Q1 (April 1, 2026 through June 30, 2026)

   1. Consolidated Financial Results (Accumulated)

      (% changes as compared to the corresponding period of the previous fiscal year)

      	Net sales		Operating income		Income before income taxes		Net income		Net income attributable to owners of the parent		Total comprehensive income for the period
      	Million yen	% increase (decrease)	Million yen	% increase (decrease)	Million yen	% increase (decrease)	Million yen	% increase (decrease)	Million yen	% increase (decrease)	Million yen	% increase (decrease)
      FY2026 Q1	367,473	39.3	189,990	53.3	234,082	92.9	174,780	93.8	174,780	93.8	301,822	213.2
      FY2025 Q1	263,776	90.1	123,952	295.7	121,357	280.1	90,180	277.7	90,180	277.7	96,381	150.1

      	Basic earnings per share	Diluted earnings per share
      	Yen	Yen
      FY2026 Q1	241.27	239.89
      FY2025 Q1	123.14	122.80

   2. Consolidated Financial Position

   	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent
   	Million yen	Million yen	Million yen	%
   FY2026 Q1	1,514,652	1,042,642	1,042,642	68.8
   FY2025	1,171,816	795,726	795,726	67.9

2. Dividends

   	Dividend per share
   	First quarter end	Second quarter end	Third quarter end	Year end	Annual total
   FY2025 FY2026	Yen - -	Yen 29.00	Yen -	Yen 30.00	Yen 59.00
   FY2026 (forecast)		-	-	-	-

   (Note) Revision of dividends forecast for this period: No

3. Earnings Forecast for FY2026 (April 1, 2026 through March 31, 2027)

   (% changes as compared to the corresponding period of the previous fiscal year)

   	Net sales		Operating income		Income before income taxes		Net income		Net income attributable to owners of the parent		Basic earnings per share
   FY2026	Million yen 1,714,000	% increase (decrease) 51.9	Million yen 846,000	% increase (decrease) 69.5	Million yen 891,000	% increase (decrease) 72.4	Million yen 660,000	% increase (decrease) 75.8	Million yen 660,000	% increase (decrease) 75.8	Yen 911.64

   (Notes) 1. Revision of earnings forecast for this period: Yes

   For details, please refer to the (4) Outlook, page 4 and “Revision of Earnings Forecast for the Fiscal Year Ending March 31, 2027” separately released today.

   2. Basic earnings per share in earnings forecast is calculated deeming the average number of outstanding shares as the number of issued and outstanding shares as of June 30, 2026 excluding the number of treasury shares as of June 30, 2026. For details, please refer to 4. Others (3) Number of issued and outstanding shares (common shares).

4. Others

1. Significant changes in the scope of consolidation during this period: None

2. Changes in accounting policies and accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes arising from factors other than 1): None

   3. Changes in accounting estimates: None

3. Number of issued and outstanding shares (common shares):

   1. Number of issued and outstanding shares at the end of each fiscal period (including treasury shares): FY2026 Q1 732,000,000 shares; FY2025 732,000,000 shares.

   2. Number of treasury shares at the end of each fiscal period: FY2026 Q1 8,033,510 shares; FY2025 6,484,224 shares.

   3. Average number of outstanding shares for each period (cumulative term): FY2026 Q1 724,402,054 shares; FY2025 Q1 732,364,731 shares.

(Note) Shares used for stock remuneration plans are considered in calculating average number of outstanding shares for each period.

Review of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: None

This document contains “forward-looking statements” that are based on Advantest’s current expectations, estimates and projections. These statements include, among other things, the discussion of Advantest’s business strategy, outlook and expectations as to market and business developments, production and capacity plans.

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “should” and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause Advantest’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.

1. Overview of Business Results

   1. Overview of Business Results

      Consolidated Financial Results of FY2026 Q1 (April 1, 2026 through June 30, 2026)

      (in billion yen)

      	Three months ended June 30, 2025	Three months ended June 30, 2026	As compared to the corresponding period of the previous fiscal year increase (decrease)
      Net sales	263.8	367.5	39.3%
      Operating income	124.0	190.0	53.3%
      Income before income taxes	121.4	234.1	92.9%
      Net income	90.2	174.8	93.8%

      During Advantest’s three-month period ended June 30, 2026, the global economy as a whole remained resilient, supported by increased investment related to AI, particularly in the United States. On the other hand, uncertainties have also increased due to geopolitical risks, including the escalating tensions in the Middle East.

      Under such global economic conditions, the semiconductor market continued to grow robustly. Against the backdrop of accelerating competition in AI technology and broader adoption across society, AI-related semiconductors, such as HPC (High-Performance Computing) devices and high-performance memory semiconductors for data centers drove market growth.

      In Advantest’s business, demand for testers for AI-related high-performance semiconductors grew significantly. As production volumes of advanced AI-related semiconductors increased and device complexity grew, customers continued to invest actively in our products. Advantest worked to expand production capacity throughout the supply chain to meet customers’ strong tester demand in a timely manner.

      As a result of the above, net sales were (Y) 367.5 billion (39.3% increase in comparison to the corresponding period of the previous fiscal year), and operating income was (Y) 190.0 billion (53.3% increase in comparison to the corresponding period of the previous fiscal year), due to factors including an increase in sales and an improved sales mix. In addition, Advantest recorded financial income of approximately (Y) 44.7 billion, primarily attributable to valuation gains on financial instruments related to strategic investments. As a result, income before income taxes was (Y) 234.1 billion (92.9% increase in comparison to the corresponding period of the previous fiscal year) and net income was (Y) 174.8 billion (93.8% increase in comparison to the corresponding period of the previous fiscal year). The depreciation of the yen against the U.S. dollar also contributed to our financial performance, with net sales, operating income, income before income taxes, and net income all reaching record quarterly highs. Average currency exchange rates in the current period were 1 USD to 159 JPY (146 JPY in the corresponding period of the previous fiscal year), and 1 EUR to 185 JPY (162 JPY in the corresponding period of the previous fiscal year). The percentage of net sales to overseas customers was 99.1% (98.6% in the corresponding period of the previous fiscal year).

      Conditions of business segments are described below.

      (in billion yen)

      	Three months ended June 30, 2025	Three months ended June 30, 2026	As compared to the corresponding period of the previous fiscal year increase (decrease)
      Net sales	240.6	333.6	38.7%
      Segment income (loss)	126.9	190.7	50.3%

      In this segment, sales of SoC test systems for high-performance SoC semiconductors increased significantly. Demand for testers grew primarily due to rising production volumes of increasingly complex AI and HPC-related semiconductors. With regards to memory testers, amid growing investment in data centers, sales growth was led by products for high-performance DRAM and sales of products for non-volatile memory also increased. In line with the growing demand for testers, sales of device interfaces and test handlers also increased.

      As a result of the above, net sales were (Y) 333.6 billion (38.7% increase in comparison to the corresponding period of the previous fiscal year), and segment income was (Y) 190.7 billion (50.3% increase in comparison to the corresponding period of the previous fiscal year).

      (in billion yen)

      	Three months ended June 30, 2025	Three months ended June 30, 2026	As compared to the corresponding period of the previous fiscal year increase (decrease)
      Net sales	23.2	33.9	46.0%
      Segment income (loss)	2.7	8.6	216.4%

      In this segment, sales of support services increased as the installed base grew. In addition, sales of consumables such as test interface boards for high-performance SoC semiconductors increased. The segment income in the corresponding period of the previous fiscal year included a gain of approximately (Y) 2.5 billion resulting from the partial divestiture of a business.

      As a result of the above, net sales were (Y) 33.9 billion (46.0% increase in comparison to the corresponding period of the previous fiscal year), and segment income was (Y) 8.6 billion (216.4% increase in comparison to the corresponding period of the previous fiscal year).

   2. Overview of Financial Condition

      Total assets at June 30, 2026 amounted to (Y) 1,514.7 billion, an increase of (Y) 342.8 billion compared to March 31, 2026, primarily due to increases of (Y) 289.8 billion in investment securities, (Y) 73.2 billion in cash and cash equivalents, and (Y) 41.9 billion in inventories, offset by a decrease of (Y) 50.2 billion in trade and other receivables. Total liabilities amounted to (Y) 472.0 billion, an increase of (Y) 95.9 billion compared to March 31, 2026, primarily due to increases of (Y) 88.9 billion in bonds, (Y) 37.6 billion in other current liabilities and (Y) 12.3 billion in trade and other payables, offset by a decrease of (Y) 51.1 billion in income taxes payable. Total equity was (Y) 1,042.6 billion. Ratio of equity attributable to owners of the parent was 68.8%, an increase of 0.9 percentage points from March 31, 2026.

   3. Overview of Cash Flows

      Cash and cash equivalents held at June 30, 2026 were (Y) 413.1 billion, an increase of (Y) 73.2 billion from March 31, 2026. Significant cash flows during the three-month period of this fiscal year and details are described below.

      Net cash provided by operating activities was (Y) 137.2 billion (net cash inflow of (Y) 46.9 billion in the corresponding period of the previous fiscal year). This amount was primarily attributable to income taxes paid of (Y) 101.1 billion, a decrease of (Y) 52.1 billion in trade and other receivables, increases of (Y) 41.3 billion in inventories, (Y) 37.0 billion in advance receipts and adjustments of non-cash items such as depreciation and amortization and gain on valuation of financial instruments in addition to the income before income taxes of (Y) 234.1 billion.

      Net cash used in investing activities was (Y) 102.5 billion (net cash outflow of (Y) 3.4 billion in the corresponding period of the previous fiscal year). This amount was primarily attributable to purchases of debt instruments of (Y) 87.8 billion.

      Net cash provided by financing activities was (Y) 35.0 billion (net cash outflow of (Y) 31.0 billion in the corresponding period of the previous fiscal year). This amount was primarily attributable to proceeds from issuance of convertible bonds with stock acquisition rights of (Y) 100.0 billion, purchases of treasury shares of (Y) 42.2 billion and dividends paid of (Y) 21.4 billion.

   4. Outlook

   Looking at Advantest’s business environment going forward, in CY2026, the semiconductor market is expected to surpass USD 1 trillion, with AI-related semiconductors continuing to drive growth. Advantest also expects the semiconductor tester market to reach its largest-ever size, driven by rising production volumes and increasing complexity of AI-related semiconductors. In particular, test demand for inference AI semiconductors is expected to significantly exceed Advantest’s projections as of April 2026. As the market grows rapidly, Advantest is expanding production capacity ahead of schedule.

   Based on this outlook and the progress made for the three-month period ended June 30, 2026, Advantest has increased its full-year consolidated forecast for the current fiscal year from the forecast provided as of April 2026 as follows: sales forecast (Y) 1,714.0 billion from (Y) 1,420.0 billion; operating income (Y) 846.0 billion from (Y) 627.5 billion; income before income taxes (Y) 891.0 billion from (Y) 629.0 billion; net income (Y) 660.0 billion from (Y) 465.5 billion, respectively. This forecast is based on exchange rate assumptions of 1 USD to 150 JPY and 1 EUR to 170 JPY for the nine months from the second quarter of the consolidated fiscal year.

   While Advantest anticipates that the current situation in the Middle East will lead to increases in certain costs, including logistics expenses, the direct impact on our business and earnings is expected to be limited at this time.

   Meanwhile, demand for key components such as memory semiconductors continues to exceed supply as AI investment expands across industries. Advantest remains focused on strengthening supply chain resilience to capture further growth opportunities.

   Advantest will closely monitor changes in the external environment and respond expeditiously and with agility. At the same time, Advantest will strive to expand the value it provides to stakeholders over the mid/long-term by pursuing the measures set out in the Third Mid-term Management Plan.

2. Condensed Quarterly Consolidated Financial Statements and Main Notes
   1. Condensed Quarterly Consolidated Statement of Financial Position

      Assets

      Current assets

      As of March 31, 2026

      Millions of Yen As of

      June 30, 2026

      Cash and cash equivalents	339,966		413,124
      Trade and other receivables	228,731		178,497
      Inventories	231,718		273,654
      Other current assets	35,992		25,539
      Total current assets	836,407		890,814
      Non-current assets
      Property, plant and equipment, net	101,628		107,707
      Right-of-use assets	19,947		18,981
      Goodwill and intangible assets, net	84,250		85,751
      Investment securities	67,927		357,737
      Other financial assets	4,022		4,009
      Deferred tax assets	55,774		47,952
      Other non-current assets	1,861		1,701
      Total non-current assets	335,409		623,838
      Total assets	1,171,816		1,514,652

      Liabilities and Equity Liabilities

      Current liabilities

      As of March 31, 2026

      Millions of Yen As of

      June 30, 2026

      Trade and other payables	142,061		154,357
      Income taxes payable	112,455		61,370
      Provisions	15,538		15,984
      Lease liabilities	4,966		4,977
      Other financial liabilities	12,508		17,097
      Other current liabilities	42,756		80,397
      Total current liabilities	330,284		334,182
      Non-current liabilities
      Bonds	-		88,930
      Lease liabilities	15,226		14,259
      Retirement benefit liabilities	20,222		20,021
      Deferred tax liabilities	6,444		11,179
      Other non-current liabilities	3,914		3,439
      Total non-current liabilities	45,806		137,828
      Total liabilities	376,090		472,010
      Equity
      Share capital	32,363		32,363
      Share premium	52,462		61,388
      Treasury shares	(44,372)		(86,414)
      Retained earnings	655,566		816,018
      Other components of equity	99,707		219,287
      Total equity attributable to owners of the parent	795,726		1,042,642
      Total equity	795,726		1,042,642
      Total liabilities and equity	1,171,816		1,514,652

      Condensed Quarterly Consolidated Statement of Profit or Loss			Millions of Yen
      	Three months ended June 30, 2025		Three months ended June 30, 2026
      Net sales	263,776		367,473
      Cost of sales	(92,138)		(111,920)
      Gross profit	171,638		255,553
      Selling, general and	(50,514)		(66,247)

   2. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income

      administrative expenses Other income	2,971	796
      Other expenses	(143)	(112)
      Operating income	123,952	189,990
      Financial income	693	44,680
      Financial expenses	(3,288)	(588)
      Income before income taxes	121,357	234,082
      Income taxes	(31,177)	(59,302)
      Net income	90,180	174,780
      Net income attributable to:
      Owners of the parent	90,180	174,780
      Earnings per share:	Yen	Yen
      Basic	123.14	241.27
      Diluted	122.80	239.89
      Condensed Quarterly Consolidated Statement of Comprehensive Income
      		Millions of Yen
      	Three months ended June 30, 2025	Three months ended June 30, 2026
      Net income	90,180	174,780
      Other comprehensive income (loss), net of tax

      Items that will not be reclassified to profit or loss

      Remeasurements of defined benefit pension plan (111) (131) Net change in fair value measurements of equity instruments

      at fair value through other comprehensive income

      Items that may be subsequently reclassified to profit or loss

      5,836 120,229

      Exchange differences on translation of foreign operations	476		6,944
      Total other comprehensive income (loss)	6,201		127,042
      Total comprehensive income for the period	96,381		301,822

      Comprehensive income attributable to:

      Owners of the parent 96,381 301,822

   3. Condensed Quarterly Consolidated Statement of Changes in Equity

Three months ended June 30, 2025

Equity attributable to owners of the parent

Millions of Yen

Share capital

Share premium

Treasury shares

Retained earnings

Other components of equity

Total

Total Equity

(loss), net of tax

Total comprehensive income for the

6,201 6,201 6,201

period - - - 90,180 6,201 96,381 96,381

Purchase of treasury shares (15,447) (15,447) (15,447)

Disposal of treasury shares (109) 699 (235) 355 355

Dividends (14,674) (14,674) (14,674)

Share-based payments 1,063 1,063 1,063 Transfer from other components of equity

to retained earnings

(111) 111 - -

Total transactions with the owners - 954 (14,748) (15,020) 111 (28,703) (28,703)

Balance at June 30, 2025 32,363 47,619 (118,941) 565,010 48,166 574,217 574,217

Three months ended June 30, 2026

Equity attributable to owners of the parent

Millions of Yen

Share capital

Share premium

Treasury shares

Retained earnings

Other components of equity

Total

Total Equity

(loss), net of tax

Total comprehensive income for the

127,042 127,042 127,042

- - - 174,780 127,042 301,822 301,822

1. Notes to the Condensed Quarterly Consolidated Financial Statements

   (Notes on Going Concern) : None (Segment Information)

   1. Overview of Reportable Segments

      Advantest manufactures and sells test system products and mechatronics-related products such as test handlers and device interfaces. Advantest also engages in research and development activities and provides maintenance and support services associated with these products.

      Advantest manages its reportable segments and operating segments on the same basis. The reportable segments are determined based on the nature of the products and the markets. Segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes.

      The test system business segment provides product lines such as test systems for SoC semiconductor devices, test systems for memory semiconductor devices, test handlers and mechatronic-applied products for handling semiconductor devices, and device interfaces that serve as interfaces with the devices that are measured, and system level testing solutions for semiconductors and modules.

      The services and others segment consists of comprehensive customer solutions provided in connection with the above segments, operations related to nano-technology products, support services, sales of consumables and others.

   2. Information of Reportable Segments

      Advantest uses the operating income (loss) before share-based compensation expense for management’s analysis of operating segment results.

      Share-based compensation expense primarily represents restricted stock compensation expense.

      Segment income (loss) is presented on the basis of operating income (loss) before share-based compensation expense. Inter-segment sales are based on market prices.

      	Test System Business	Services and Others	Elimination and Corporate	Consolidated
      Net sales Net sales to unaffiliated customers Inter-segment sales	240,554 -	23,222 -	- -	263,776 -
      Total	240,554	23,222	-	263,776
      Segment income (loss) (operating income (loss) before share-based	126,925	2,706	(4,616)	125,015
      compensation expense) Adjustment: Share-based compensation expense	-	-	-	(1,063)
      Operating income	-	-	-	123,952
      Financial income	-	-	-	693
      Financial expenses	-	-	-	(3,288)
      Income before income taxes	-	-	-	121,357

      Three months ended June 30, 2025

      Three months ended June 30, 2026

      Millions of Yen

      Millions of Yen

      	Test System Business	Services and Others	Elimination and Corporate	Consolidated
      Net sales Net sales to unaffiliated customers Inter-segment sales	333,562 -	33,911 -	- -	367,473 -
      Total	333,562	33,911	-	367,473
      Segment income (loss) (operating income (loss) before share-based	190,722	8,563	(7,944)	191,341
      compensation expense) Adjustment: Share-based compensation expense	-	-	-	(1,351)
      Operating income	-	-	-	189,990
      Financial income	-	-	-	44,680
      Financial expenses	-	-	-	(588)
      Income before income taxes	-	-	-	234,082

      (Notes) 1. Adjustments to segment income (loss) in Corporate principally represent corporate general and administrative expenses and research and development expenses related to fundamental research activities that are not allocated to operating segments.

      1. For services and others, the segment income for the three months ended June 30, 2025 includes (Y) 2,504 million income from the partial divestiture of a business.

      2. Financial income for the three months ended June 30, 2026 includes (Y) 41,075 million in valuation gains on financial instruments related to strategic investments.