Kokusai Electric's Q1 Revenue Jumps 45.6% to Record JPY 75.4 Billion on DRAM and Logic Demand

Kokusai Electric Corporation reported record quarterly revenue of JPY 75.4 billion for its first quarter of fiscal 2027, up 45.6% year over year, according to MarketScreener. The Japanese supplier of deposition and thermal processing equipment for chipmakers said growth came mainly from non-China equipment sales tied to AI-related semiconductor investment.

Kokusai Electric's Record Quarter in Detail

Revenue rose from JPY 51.8 billion a year earlier as demand strengthened for DRAM and logic/foundry applications, and service revenue also increased. Operating profit climbed 63.9% to JPY 15.9 billion from JPY 9.7 billion, lifting the operating margin to 21.1% from 18.8%. Selling, general and administrative expenses rose 15.6% to JPY 14.8 billion from JPY 12.8 billion, while other income fell 81.6% to JPY 56 million from JPY 304 million.

Net profit increased 70.6% to JPY 11.6 billion from JPY 6.8 billion. Finance income rose 147.1% to JPY 168 million from JPY 68 million, and income tax expense rose 64.3% to JPY 4.2 billion from JPY 2.5 billion. Operating cash flow surged to JPY 12.1 billion from JPY 4.9 billion, and free cash flow more than tripled to JPY 6.6 billion from JPY 2.0 billion after JPY 5.5 billion of capital expenditure and other investing activities.

Kokusai Electric reported Q1 27 orders of approximately JPY 140 billion, significantly above its initial outlook, and management noted strong demand from DRAM. The company said growth was driven mainly by non-China equipment sales, showing that demand tied to AI-related semiconductor investment remains very much alive.

Earlier Guidance and Index Moves

On August 6, 2026, Kokusai Electric raised its consolidated net profit forecast for the fiscal year ending March 2027 to JPY 55.5 billion from JPY 38.8 billion, an 84.4% year-on-year increase, Reuters reported. That same day, Investing.com reported the company's record first-quarter fiscal 2027 revenue of JPY 75.4 billion for the quarter ended June 2026, representing 46% year-over-year growth driven by DRAM and logic equipment demand. In August 2026, Investing.com reported that MSCI added Kokusai Electric to its Japan Index effective August 31, while removing Seibu Holdings and JFE Holdings.

Lam Research and Jenoptik Results

Peer equipment makers also posted strong results. Lam Research reported record revenue of $8.22 billion, up 54%, and free cash flow of $3.24 billion, 247wallst reported on October 31, 2026. Jenoptik raised its 2026 EBITDA margin forecast to about 22% after strong third-quarter demand, especially in semiconductor equipment, FinanzNachrichten.de reported on October 21, 2026.

What to Watch Next

Kokusai Electric's raised net profit forecast of JPY 55.5 billion applies to the fiscal year ending March 2027, as stated in its August 6, 2026 announcement. Lam Research management expects China's revenue share to fall meaningfully in December, according to 247wallst.