FANUC Q1 FY2027: Operating profit surges 26%, full-year forecast raised

FANUC’s first-quarter revenue rose 17.7% year-on-year to ¥231,035 million, setting a new record for the April–June period. Operating profit jumped 26.1% to ¥53,492 million, ordinary profit grew 32.3% to ¥68,193 million, and net income attributable to shareholders soared 34.7% to ¥50,981 million.

Gross profit margin improved from 39.0% to 39.4%, and despite higher selling, general and administrative expenses, the operating margin widened from 21.6% to 23.2%. Net income outpaced operating profit growth, driven by higher equity-method investment gains and increased interest income. The results reflected strong capital investment appetite across industries including semiconductor manufacturing equipment and EVs.

All four segments posted year-on-year revenue growth in the quarter.

FA (Factory Automation) revenue rose 15.5% to ¥57,352 million, supported by demand from machine tool builders, particularly in India and China, while Europe remained sluggish.

Robots, the largest segment at 41.6% of total revenue, grew 18.7% to ¥96,103 million. In Japan, automotive-related demand was soft but general industry was firm; the Americas saw strength in both automotive and general industries; China drove growth with robust EV and general industry orders, reflecting broadening automation investment.

Robomachines recorded the fastest growth at 22.8%, reaching ¥41,654 million. The compact machining center ROBODRILL performed well globally, especially in China. The electric injection molding machine ROBOSHOT expanded in the Americas and China, while the wire-cut EDM ROBOCUT also benefited from rising Chinese demand.

Services revenue increased 13.0% to ¥35,926 million, driven by proactive maintenance demand and the expansion of IoT-based preventive maintenance services such as the FIELD system Basic Package and AI Servo Monitor.

Reflecting the strong first quarter, FANUC raised its FY2027 consolidated forecasts. Revenue is now seen at ¥948.1 billion (up 4.2% from the previous forecast), operating profit at ¥218.0 billion (up 2.7%), ordinary profit at ¥271.2 billion (up 5.5%), and net income at ¥198.0 billion (up 7.1%). Compared to the prior year, the revised forecast implies revenue growth of 10.5% and net income growth of 18.9%. The upgrade reflects continued demand for semiconductor and electronic component manufacturing equipment, EV-related investments, and robust overseas orders, especially from China.

At quarter-end, total assets stood at ¥2,108,717 million, up ¥18,000 million from the previous fiscal year-end. Cash and deposits amounted to ¥721,468 million, and together with marketable securities, on-hand liquidity totaled ¥762,268 million. The equity ratio was an extremely strong 89.7%, with virtually no interest-bearing debt.

Total liabilities declined by ¥8,878 million to ¥198,875 million. Net assets increased by ¥26,895 million to ¥1,909,842 million, reflecting the accumulation of quarterly net profit and higher foreign currency translation adjustments and unrealized gains on securities.

The company has not yet decided on interim or year-end dividends for FY2027, stating it will disclose plans promptly when possible. FY2026 annual dividends totaled ¥107.09 per share (interim ¥51.33, year-end ¥55.76). No major share buyback or other capital policy changes were announced.

Key risks outlined in the earnings report include:

• Heightened geopolitical risks and global economic uncertainty, which could trigger a sudden slowdown in capital spending.
• Intensifying competition, particularly from local manufacturers in the Chinese market.
• Foreign exchange volatility: a stronger yen could weigh on the high proportion of overseas revenue.
• Supply chain disruptions: any renewed turmoil could affect production and shipments.
• The automotive industry’s shift to EVs and fluctuations in vehicle production volumes, which could impact robot demand from a major customer segment.