Japanese Chip Designer Socionext Returns to Profit in Q2, Raises Full-Year Guidance on Weak Yen
Socionext restored profitability in the second quarter driven by the shipment of previously deferred automotive products; favorable exchange rates led to an upward revision of its fiscal year 2026 guidance.
Japanese semiconductor design firm Socionext reported on October 28, 2026, that it returned to profitability in the second quarter of fiscal year 2026 (July–September). Revenue reached 60.4 billion yen, up 14.7% year-on-year; operating profit was 2.3 billion yen, flat year-on-year; and net income rose 31.3% to 2.1 billion yen.
The recovery was primarily driven by the clearance of delayed shipments. In the previous quarter (April–June), approximately 10 billion yen worth of automotive products were postponed due to a review of production and shipping systems, resulting in a loss. The successful delivery of these goods in Q2 restored black ink. Although the change in product mix lowered gross margins compared to the prior quarter, increased sales volume boosted total product gross profit by 4 billion yen.
By segment, while telecommunications revenue declined, growth in automotive and industrial sectors lifted product sales by 12.8% year-on-year to 50.2 billion yen. Non-Recurring Engineering (NRE) revenue, collected during the design phase, surged 28.4% to 10.2 billion yen, supported by demand in data center and network applications.
Citing a weaker yen against the dollar than initially anticipated, Socionext revised its full-year fiscal 2026 guidance upward. The company now expects annual revenue of 225 billion yen (up 4.7% from April forecasts), operating profit of 15.5 billion yen (up 10.7%), and net income of 10.5 billion yen (up 5%).