Ibiden operating profit jumps 84.6%, but shares fall 15.21% in one session
Key Facts
Ibiden reported first-half results for fiscal 2026 on October 29, posting sales of 262.546 billion yen, up 34.3% year on year. Operating profit jumped 84.6% to 60.116 billion yen, while net profit attributable to owners of the parent rose 74.8% to 38.574 billion yen. The results covered the April-to-September period and included the company's electronics businesses, including IC package substrates, and ceramics. The company did not describe the earnings as record-breaking, contrary to the initial draft. Ibiden also raised its forecast for the fiscal year ending March 31, 2027, a move that did not prevent its shares from falling in the following session.
Compared with the first half of the previous fiscal year, the figures showed broader activity and stronger profitability: sales then were 195.485 billion yen and operating profit was 32.573 billion yen. In the current period, the electronics segment alone generated sales of 172.540 billion yen and operating profit of 50.028 billion yen. The company links part of its outlook to growing demand for AI GPUs and specialized circuits, particularly those used for AI inference. In its results presentation, it said, "Demand for AI GPUs and specialized circuits for AI inference is expected to continue growing steadily." It also expects total demand for advanced packaging substrates to exceed the industry's production capacity, with demand for AI processor substrates reaching 5.4 times the 2026 level by 2030.
The company raised its forecast for the fiscal year ending in March 2027 to sales of 565 billion yen, operating profit of 133 billion yen and net profit of 89 billion yen. Ibiden's disclosures also included an increase in the interim dividend from 15 to 20 yen per share, with payment due to begin on November 25, 2026. The dividend revision came alongside the announcement of new investments in production capacity, as the company expects demand for chip substrates linked to AI applications to keep growing. Expansion plans included a previously announced investment of 280 billion yen in the Cell8 facility, with production of AI processor substrates set to ramp up gradually from fiscal 2027. The company also announced an additional investment of 150 billion yen in the Cell6 facility, with operations to start gradually from fiscal 2029.
Ibiden shares fell 15.21% on October 30, hitting the daily lower limit, according to coverage by Fisco via Investing.com. The report said Intel's share price decline after its results weighed on Ibiden, after the initial reaction to the Japanese company's results had been more muted. Intel shares fell 30% in the same session amid concerns about weak demand for PCs and the rising costs of the AI boom, according to Reuters. Fisco's coverage linked Ibiden's deeper losses to a sell-off in chip stocks, while noting that the company had raised its annual operating profit forecast from 1,270 billion yen to 1,330 billion yen. These facts do not support an explanation tying the share price decline to a cut in Ibiden's forecast; the company raised its annual outlook.
Ibiden is continuing to carry out its expansion plans while finalizing additional terms with customers; it aims to make decisions and disclose details during fiscal 2026 regarding the Cell7 and Cell9 facilities. Cell6, meanwhile, is scheduled to begin operations gradually from fiscal 2029 under the announced plan. As part of efforts to broaden its investor base and improve trading liquidity, a two-for-one stock split took effect on October 1, 2026. On Japanese monetary policy, the Bank of Japan kept its short-term interest rate at 1.25% at the meeting that ended on October 30, in an 8-to-1 vote. Available disclosures do not link the bank's decision to Ibiden's share price move during the session.