Advantest (6857N) Q2 2026 Earnings Report

The call was strongly positive, supported by elevated demand across GPU, custom ASIC, and CPU testing; a 28% currency-adjusted first-half-to-second-half top-line growth outlook; market share growth from 56% in 2024 to 66% in 2025; expected further share gains; and continued capacity expansion. The main challenges were higher DDR and component costs, scarce memory, the nonrecurring nature of some first-half margin benefits, and limited disclosure on capacity timing and the quantified 2027 TAM outlook. The highlights significantly outweighed the lowlights.

Management said the 10,000 systems target was originally planned for the end of fiscal 2028, but it “has to be accelerated pretty significantly,” with an exact date likely to be pinpointed “in the next quarter or so”; the ATE TAM CAGR has been “about 50% or a little above 50%,” is not expected to slow, and customers are looking at CAGRs of “mid to high 50s all the way through 2029.” CPO is expected to see “a double or tripling every year for the next couple of years,” reaching “somewhere in the billion-dollar ATE market size,” while the overall SoC market is “above $11 billion” and growing at a “50%+ CAGR.” Advantest expects to meet the “70% threshold and maybe even beyond in the near future,” with the 70% market share expected “in the end of fiscal 2026 and the beginning of the fiscal 2027, in other words, April,” and expects to gain share in 2026 and continue that share gain in 2027. Second-half top-line growth, adjusted for currency exchange, is expected to be “28% growth, half-over-half,” margins are “settling in at this low 50s,” and the next production-capacity step under discussion is “another doubling from 10,000 to 20,000,” with no timeframe disclosed.